Veeda Clinical Research refiles DRHP for IPO

BILKULONLINE

Ahmedabad, Feb 4:  CX Partners backed Research Player, Veeda Clinical Research, is an independent, global full-service contract research organization (“CRO”) offering a comprehensive portfolio of services across various stages of the drug development value chain, has refiled its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offering (IPO).

The Company had earlier filed its IPO papers with Sebi on September 27, 2021.

The IPO, with a face value of Rs 2, is a mix of fresh issue of shares up to Rs 185 crore and an offer-for-sale up to 13 million equity shares by Promoter and Other Selling Shareholders.

Offer for Sale consists of shareholders selling shares up to 3,493,895 equity shares by Basil Private Limited, up to 7,359,620 equity shares by Bondway Investments Inc., up to 810,000 equity shares by Dr. S N Vinaya Babu, up to 690,210 equity shares by Sabre Partners AIF Trust, up to 198,795 equity shares by CX Alternative Investment Fund, up to 210,570 equity shares by Anushka Singh, up to 81,694 equity shares by Vikrampati Singhania, up to 40,847 equity shares by Harsh Pati Singhania, up to 40,487 equity shares by Anshuman Singhania, and up to 34,000 equity shares by Siddharth Ramesh Kejriwal.

The company, in consultation with the BRLMS, may consider a further issue of equity shares through a private placement, preferential allotment or any other method aggregating up to Rs 37 crore as pre-IPO placement. If the pre-IPO placement is completed, the amount raised under the pre-IPO placement will be reduced from the fresh issue.

The proceeds from the fresh issue to the extent of Rs 50 crore will be used for capital expenditure towards procurement of equipment and machinery for the company; Rs 35 crore for investment in its material subsidiary, Bioneeds India Private Limited for capital expenditure towards procurement of equipment and machinery; Rs 10.89 crore for investment in its material subsidiary, Bioneeds India Private Limited for Repayment/pre-payment, in part or full of certain borrowings of Bioneeds India Private Limited; Rs 33 crore for funding organic growth of its Company, its material Subsidiary, Bioneeds India Private Limited and Health Data Specialists (Holdings) Limited through marketing and promotional activities, updation of technology and adoption of modern digital solutions in its workflows to enhance the efficiency and quality assurance of its operating processes and data management; general corporate purposes.

The Offer is being made through the book-building process, wherein not less than 75% of the net offer is allocated to qualified institutional buyers, and not more than 15% and 10% of the net offer is assigned to non-institutional and retail individual bidders respectively.

Veeda Clinical Research was incorporated in the year 2004 and began its operations with its first facility in Ahmedabad, Gujarat, in 2005, equipped with Healthy Volunteer Study (HVS) capabilities. Over the years, the company has steadily expanded its capacities and capabilities through both organic and inorganic growth strategies. This expansion has enabled Veeda to cater to a broader range of research and development needs for small, mid-sized, and global pharmaceutical companies worldwide.

The company offers a comprehensive suite of services, including early and late-phase clinical trials, Healthy Volunteer Studies (HVS) encompassing bioavailability and bioequivalence studies, pre-clinical trials and non-clinical testing, as well as biopharma services such as non-clinical analysis and clinical bioanalysis of large molecules. With a presence in key global markets, including North America, Europe, and Asia (including India), Veeda has established itself as a significant player in the clinical research industry.

Veeda’s total addressable market (TAM) is projected to grow from USD 65.4 billion (Rs 5.7 trillion) in 2023 to USD 110.7 billion (Rs 9.65 trillion) by 2028, reflecting a compound annual growth rate (CAGR) of 11.1%, according to a F&S Report, mentioned in the DRHP. The company has access to 558 clinical sites across multiple countries and maintains a presence in all major global markets. As of September 30, 2024, Veeda operates seven facilities in India and has access to over 280 clinical sites within the country.

The company has a strong track record of regulatory compliance, having successfully completed 119 global regulatory inspections for its HVS and pre-clinical services. These inspections were conducted by prominent regulatory authorities such as the USFDA, UKMHRA, WHO, ANVISA, DCGI, EMA, and NPRA, among others. Additionally, Veeda has undergone over 447 client audits as of September 30, 2024.

Financially, Veeda has demonstrated consistent growth, with its revenue from operations growing at a CAGR of 16.18% between Financial Years 2022 and 2024. As of September 30, 2024, the company’s service distribution included 43.31% of clinical trials, 36.79% of HVS, 19.66% of pre-clinical trials, and 0.24% of biopharma studies, serving both domestic and international markets. for the six months ended September 30, 2024, revenue from operations stood at Rs.305.30 crore.

Veeda boasts a diverse clientele, ranging from large pharmaceutical companies and small-to-medium biotech firms to research and academic institutions. As of September 30, 2024, the company had over 436 active clients globally. It completed studies for 417, 504, 498, and 580 clients during the six months ended September 30, 2024, and Financial Years 2024, 2023, and 2022, respectively.

To enhance its operational efficiency, Veeda has increasingly integrated technology into its business processes. The company has implemented technological solutions across its clinical trials, HVS, and pre-clinical trials workflows. These include volunteer registration and screening, electronic data capture, remote data verification, laboratory management, sample preparation, and quality assurance. By leveraging a combination of bespoke software, industry-standard platforms, and in-house developed programs, Veeda aims to digitize its processes, improve operational efficiency, and ensure high-quality outcomes.

In line with its growth strategy, Veeda acquired 100% equity shares of Heads on March 26, 2024. Additionally, it acquired a 30% stake in Bioneeds India Private Limited on March 19, 2021, followed by an additional 20.10% equity acquisition on July 16, 2021, during Financial Year 2022. These acquisitions underscore Veeda’s commitment to expanding its capabilities and strengthening its position in the global clinical research market.

Axis Capital Limited, CLSA India Private Limited, IIFL Capital Services Limited, and SBI Capital Markets Limited are the book-running lead managers and MUFG Intime India Private Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.