A decade-old company with a clientele including Pfizer Ltd. and Sanofi India Ltd., Windlas Biotech is all set to launch its IPO on 4 August 2021. The IPO closes to the public on 6 August, Friday. Here’s a brief rundown on the 31st Initial Public Offering of 2021 in India from Windlas Biotech.
The company has fixed its price band at Rs. 448 – Rs. 460, and is looking to fetch Rs. 401.53 crores via its initial share sale.
As on 3 August 2021, Tuesday, Windlas’ GMP was set at Rs. 150. Stacking this against its set price, it meant that Windlas’ shares were trading at around Rs. 598 – Rs. 610 on the grey market.
Here’s a Detailed Look at the Company
Windlas Biotech Ltd. is an industry leader in the CDMO sector, engaged in product discovery, manufacture, licensing etc. It also sells branded generics under its name and over-the-counter products. This company works across 3 verticals, which are:
- CDMO products and services
- Domestic trade generics and over-the-counter products such as health supplements and nutraceutical products
It has a manufacturing unit at Dehradun that functions with a manufacturing capacity of approx. 7000 million tablets/capsules, 55 million pouches or sachets, and 60 million liquid bottles.
Aim of the Windlas IPO
With the IPO, this company hopes to raise funds for the purchase of factory equipment. It also hopes to achieve the following:
- Expansion of facility at Dehradun Plant IV and addition of injectable dosage capability at Dehradun Plant II at Rs. 50 crores
- To fund the incremental working capital (Rs. 47.56 crores)
- Repayment/prepayment of certain borrowings (Rs. 20 crores)
- General corporate purposes
Break-up of the Offering
The IPO consists of fresh issues worth Rs. 165 crores and an OFS of 51.42 lakh equity shares. Investors parting with their shares include:
- Promotor Vimla Windlass (11.36 lakh equity shares)
- Tano India Private Equity Fund II (40.06 lakh shares)
Hence, the total amount raised in the market will be set at Rs. 401.53 crores.
Among this, not more than 50% is available for Qualified Institutional Buyers, 35% for retail investors and 15% for NIIs.
Strengths of Windlas Biotech
The chief strength of Windlas Biotech is that it is a leader in the CDMO industry of India.
It has a strong focus on the chronic therapeutic category with side objectives in nutraceutical and health supplement products. With a one-of-a-kind facility available at Dehradun, the company has an experienced team at its helm.
Windlas Biotech is a profit-making venture with total assets worth Rs. 2961.63 million as on the financial year ending March 2021. It has a state-of-the-art facility at Dehradun and is one the industry leaders in its sector.
Nonetheless, before investing in the Windlas Biotech IPO individuals must take note of the company’s financials, opportunities, strengths, etc. before proceeding.
Frequently Asked Questions
- Who are the promoters of Windlas?
The promoters of the company are Ashok Kumar Windlass, Manoj Kumar Windlass, Hitesh Windlass, and the Promoter Trust.
- What is Vimla Windlass’ share?
Vimla Windlass held 7.8% of the share which she is now selling.
- What is Windlas Biotech’s market share?
Windlas Biotech has around 1.5% of the market share (in terms of revenue) in the CDMO sector as of FY2019 – 2020.