Windlass Biotech Ltd. is going public with its Initial Public Offering (IPO) on 4th August IPO One of the four major public issues that is making its debut this week is the much-awaited one. A company’s public offering is attractive for a few reasons. One is that the company has a diverse product portfolio. Windlass Biotech also has a strong and established international presence, with strong exports being one of the key features of the company.
This has helped the company to diversify its geography and revenue. According to Angel Broking, production capacity is another notable factor in the company’s strength as it maintains the high production capacity of its CDMO offerings, which gives it a competitive edge. Established in 2001, the company specializes in manufacturing Pharmaceutical Formulation Contract Development and Manufacturing Organization (CDMO). In this line, it also provides a wide range of services. These services range from discovery to product development, licensing and commercial manufacturing of generic products.
The investors of the IPO were allotted reservation for the upcoming issue. Qualified Institutional Buyers (QIBs) were given 50 per cent allocation. Non-institutional investors (NIIs) have a listed reservation of 15 per cent for the issue. 35% allocation was reserved for the retail investor segment.
According to IPO Watch, the gray market premium (GMP) for Windlass Biotech IPO was listed as Rs 150 on August 3. Stacked against the price band of Rs 448 to Rs 460 per equity share, it indicated that the shares were trading at a premium of Rs 598 to Rs 610 in the unlisted gray market.
Windlass Biotech IPO opens on Wednesday and closes on August 6. Any anchor booking that can happen will happen before the opening day of August 3. The shares allotted for anchor investors were fixed at 26,18,707 shares with a value of Rs 120.46 crore. The Rs 401.54 crore IPO is made up of fresh issue of Rs 165 crore and Offer for Sale (OFS) of Rs 236.54 crore, with 5,142,067 equity shares at Rs 5 per share as face value.
After the subscription closes, the company is looking at an allotment date of August 11, 2021. Thereafter, there will be a possibility of return and recognition of shares to the successful bidders on August 12 and August 13 respectively. The listing is likely to happen on August 17 but it is not confirmed yet.
Should you subscribe to Windlass Biotech IPO?
Windlass Biotech is one of the top five domestic pharmaceutical formulation CDMO companies in the country. According to Angel Broking, it has three strong business verticals which include CDMO products and services, domestic business generic and over-the-counter (OTC) markets and exports. The company’s clients are of a reputed reputation with names like Intas Pharmaceuticals, Sanofi India, Pfizer and Cadila Healthcare. The company’s exports bring in a significant part of the revenue.
Speaking on the public issue approach, Sandeep Matta, Founder, TradeIT Investment Advisory, said, “One of the top five formulations of CDMO companies in India, from product discovery to product development, licensing and commercial manufacturing of generic products including complex generics . and supply to major pharma customers like Pfizer, Sanofi, Cadila, Emcure, Eris etc. The company is looking to raise ₹401 crore through the IPO route, however issues on financial parameters are aggressively priced at 64pe, while the current valuation is also all near-term positive discount for the company. Investors with a surplus cash reserve can apply for a fully fledged long term.”
“In addition to being a domestic leader in the CDMO segment, Windlass Biotech has an innovative product portfolio that includes complex generic products. In addition, its team of experienced and skilled managers and promoters continues to act as its moat. Furthermore, its impressive earnings make for continued growth and revenue generation,” Angel Broking said in a note.
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