Windlas Biotech IPO: Check grey market premium, last subscription date of public issue

Windlas Biotech Limited, a leading manufacturer in pharmaceutical designs, launched its initial public offering (IPO) today (4 August). This IPO will be open for subscriptions for three consecutive days and it will close on 6 August. Meanwhile, the price band for the IPO stood at Rs 448 to Rs 460 per equity share, while the grey market premium (GMP) was Rs 130 on 4 August. The shares were therefore trading at a premium of Rs 578 to Rs 590 per equity on the unlisted market. Windlas Biotech, which was incorporated in 2001, offers a wide range of contract development and manufacturing organisation (CDMO) services. These include services ranging from product discovery to product development like licensing, and commercial manufacturing of generic products as well as complex generics. Through its public offerings, Windlas Biotech is looking to raise up to Rs 401.54 crore. The issue will reportedly comprise a fresh issue that aggregates up to Rs 165 crore with 5,142,067 equity shares with a face value of Rs 5 per share. Meanwhile, VP of Research from Religare Broking, Ajit Mishra stated that the company is well placed to grab opportunities arising from the industry and strengthen its relationship with customers. “Windlas is one of the leaders in the domestic pharmaceutical formulations CDMO industry. We believe the company is well placed to grab the opportunity arising from the industry given its strong product portfolio, relationship with its customers, R&D capabilities, and efficient & quality compliant manufacturing facilities,” Mishra said in a note as per a News18 report. Additionally, the company is also planning to purchase equipment required for capacity expansion at its Dehradun Plant IV with the IPO. The company has also decided to add injectable dosage capabilities at its other existing plant, Dehradun Plant-II. Later on, portions of the IPO funds will be used towards the working capital requirements of Windlas and also towards repayment and pre-payment of the firm’s borrowings that have taken place so far.