Windlas Biotech IPO: The initial public offer opens for investors on August 4Windlas Biotech Limited share sale via initial public offering (IPO) will open for bidding tomorrow - August 4 and close on August 6 - remaining open for subscribers for a period of three days.
The Rs 401.5 crore IPOcomprises a fresh issue of Rs 165 crore and asale of shares worth Rs 236.5 crore.
The leading pharmaceutical company is selling shares in the price band of Rs 448 to Rs 460 per equity share.
A retail individual investor can buy a minimum of one lot of 30 shares up to a maximum of 14 lots.The promoters of the company areHitesh Windlass, Ashok Kumar Windlass,Manoj Kumar Windlass, and the AKW WBL Family Private Trust.
Windlass Biotech seeks to utlise the IPO funds forpurchasing theequipment required for the capacity expansion of itsexisting facility at Dehradun Plant IV.
It also seeks tofinance the incremental working capital requirements of the company, repay its borrowings, and for general corporate purposes.Windlas Biotech is one of the leading companies in thepharmaceutical formulations contract development and manufacturing organizations (CDMO)segment in the country.
The company providesa range of CDMO services such aslicensing, product discovery to product development, and commercial manufacturing of generic products including complex generics.The company has a strong focus on the chronic therapeutic category and is a leadingmarket player in the domestic pharmaceutical formulation CDMO segment.''While the company does not have any direct listed peers, it competes with unlisted peers such as Theon Pharma, Synokem Pharma, and Innova Captab.
Among these,WindlasBiotech has lower margins and return ratios as compared to Synokem and Theon Pharmaceuticals.At the higher end of the price band,WindlasBiotech is priced at a P/E ratio of ~64 times FY21 EPS (on a fully diluted on post-issue basis).
While the P/E looks stretched, businesses are being priced at expensive valuations in this IPO season, andWindlasBiotech is no exception.
Given the company's leadership position, strong growth in topline, and good growth runway, we remain positive on the long-term prospects of this issue," SEBI-registered investment advisor INDmoney said in a report.