Windlas Biotech Ltd. IPO Review 2021: Windlas Biotech Ltd IPO will hit the Indian markets from August 4th to August 6th. They aim to raise Rs. ₹401.54 crores through a public offering.
In this article, we look into important information on the Windlas Biotech Ltd IPO and find out the possible prospects of the company.
Windlas Biotech IPO Review – About the Company
Founded in 2001, Windlass Biotech Ltd is one of the top Indian companies in the pharmaceutical formulations contract development and manufacturing organizations (CDMO) segment. Windlass is one of the few companies that focuses solely on the formulation of CDMO and produces a comprehensive range of CDMO services.
Competing in the industry for the last 2 decades the company has gained the company significant experience in manufacturing solid and liquid pharmaceutical dosage forms and in providing specialized capabilities. The company operates its business across 3 verticals.
1. CDMO Products and services
2. Domestic trade generics and Over-the-counter (OTC) market (nutraceutical and health supplement products)
3. Export
Currently, the company is focusing on the development and launch of complex generic products in the chronic therapeutic category related to lifestyle-related disorders.
One of its biggest advantages being in the pharma sector is that its services are in line with the current good manufacturing practices (GMP). Another advantage is that the company competes in a niche that has high barriers to entry. This is thanks to the special know-how required in developing and manufacturing its complex products.
Some of its leading customers include Pfizer Ltd, Sanofi India Ltd, Cadila Healthcare Ltd, Emcure Pharmaceuticals Ltd, Eris Lifesciences Ltd, Intas Pharmaceuticals Ltd, and Systopic Laboratories Private Ltd. The company provided its CDMO services to 7 of the top 10 Indian formulations pharmaceutical companies.
The company’s manufacturing facilities are located in Dehradun. They have an installed operating capacity of 7,063.83 million tablets/ capsules, 54.46 million pouch/ sachet, and 61.08 million liquid bottles.
In terms of revenue, the company ranks among the top 5 players in India in the domestic pharmaceutical formulations contract development and manufacturing organization (CDMO) industry. The company has achieved a CAGR of 6.7% from FY18-21. Furthermore, analysts expect the industry to grow at a CAGR of 11.5%-12.5% between FY20-FY25. This is due to the growth in chronic therapeutic areas, such as anti-diabetic and oncology.
Grey Market Premium (GMP) – Windlas Biotech Ltd
The shares of Windlass Biotech Ltd traded at around a 28% premium in the grey market before the IPO. The shares traded at a price of Rs. 590 giving them a premium of Rs. 130 over their issue price band of Rs 448-460 per share.
Windlas Biotech Ltd. IPO Review – Key IPO Information
The promoters of the company include Ashok Kumar Windlass, Hitesh Windlass, Manoj Kumar Windlass, and the AKW WBL Family Pvt Trust. The IPO also includes an offer for sale of Rs. 236.54 Crores. The sale will be made by investors Vimla Windlass and Tano India Private Equity Fund II.
They have appointed SBI Capital Markets, DAM Capital Advisors Ltd and IIFL Securities Ltd. as the lead managers to the issue. Link Intime India has been appointed as the registrar to the issue.
| Particulars | Details |
|---|---|
| IPO Size | ₹401.54 Cr |
| Fresh Issue | ₹165.00 Cr |
| Offer For Sale(OFS) | ₹236.54 Cr |
| Opening Date | Aug 4, 2021 |
| Closing Date | Aug 6, 2021 |
| Face Value | ₹5 per equity share |
| Price Band | ₹448 to ₹460 per equity share |
| Lot Size | 30 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 14 |
| Listing Date | Aug 17, 2021 |
Purpose of the Windlas Biotech Ltd. IPO
- To purchase equipment required for capacity expansion of the existing facility at Dehradun Plant IV and add the addition of injectables dosage capability at the facility at Dehradun Plant-II.
- To finance incremental working capital requirements of the company.
- Repayment/prepayment of borrowings.
- General corporate purposes.
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In Closing
The IPO opens on 4th August and closes on 6th August 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Windlass Biotech Ltd.
That’s all for this post. Do let us know what you think of the Windlass Biotech Ltd. IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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