Windlas Biotech IPO is getting launched for subscription on Wednesday 04, August 2021, and will be available for subscription till Friday, 04 August, 2021.
The company is looking to raise Rs.401.5 crore through public issue which includes fresh issuance of shares worth Rs.165 crore (51.42 lakh shares) and offer-for-sale (OFS) of shares worth Rs 236.5 crore by existing shareholders.
The equity shares of Windlas Biotech Limited are proposed to be listed on both BSE and NSE.
The Windlas Biotech IPO issue will be sold in the price band of Rs 448-460 0per share and the minimum lot quantity is 30 shares and in multiples thereof translating to a minimum investment of Rs 13,800 at upper end.
The latest Grey market premium price (GMP) for Windlas Biotech IPO were seen up by more than 35.6% and were trading around Rs.156-161 as of today, This means people are expecting it to open on listing day to be at least at Rs.580-620 or more.
Having said that GMP does not mean in anyway a recommendation for an IPO, the financials of a company and its future prospectus tells a lot.
Here is the thing no one can tell you whether the IPO will going to make a stellar debut or not, it is you who have to decide based on available information about the company.
Moreover the IPO’s now a days are very hot market every one wants to earn some quick money on listing day itself and there is nothing wrong about it.
One must not forget to check the financials and do not fall for any recommendation from anyone, it is you hard earned money, you should decide whether to opt for the IPO or not.
You may have watch various YouTube channels or read on different websites about recommendation for stocks and IPO, it is my humble suggestion and request please do not ever fall prey to it. Better than this is to invest in ETF’s?.
Therefore, whenever you are buying IPO make sure the money invested is not the one which you my need it urgently, always use extra money which you may not require in near future, Otherwise stay away completely.
Now, coming back to the Windlas Biotech IPO let us talk about in brief about the company and its financials and other details step by step.
About Windlas Biotech Limited (WBL):
Incorporated in 2001, Windlas Biotech (WBL) is among the top five players in the domestic pharma formulations CDMO industry in India in terms of revenue with 1.5% market share.
Apart from CDMO business (85% of revenues), it also sells own branded products in the trade generics and OTC (over the counter) markets (10.2% of revenues) as well as exports (4.3% of revenues) generic products to several countries.
The company has four manufacturing facilities in Dehradun, Uttarakhand. Its manufacturing facilities had an aggregate installed operating capacity of 706.4 crore tablets/ capsules, 5.4 crore pouch/ sachet and 6.1 crore liquid bottles.
All manufacturing facilities are Schedule M compliant while Dehradun Plant – I, Dehradun Plant – II and Dehradun
Plant – IV are compliant with standards set by WHO GMP.
In addition, it has recently received a license to manufacture certain APIs at Dehradun Plant –I, which will help with backward integration.
For improving users health, it developed several products in different areas for example:
(i) alternate dosages, such as, medicated mouth sprays.
(ii) coating technologies, including, pellet coating using bottom spray, API coating, pH dependent coating and nanonized crystals.
(iii) nutraceuticals dosages, including, biscuits, protein powder, supplements, chocolate bars and malt based foods.
(iv) ayurvedic products, such as, wellness products, hair oils and cough syrups.
Further, in relation to ‘first-to launch’ generic products, it has launched Vildagliptin within two days of its patent expiry.
In addition, in relation to the drug and device combination products, the company has recently launched a lung therapy food supplement and telemedicine support for respiratory wellness in India under the brand PulmoHeal in partnership with a US oncology company, which is an anti-inflammatory nutraceutical health supplement approved by the FDA of India.
Windlas Biotech Limited Financials:
Windlas Revenue from domestic market stood at Rs 4,07.72 crore or 95.5% of total while the rest came from overseas markets.
Total expenditure on research and development at Rs 3.61 crore was 0.93% of total expenses. Top five customers accounted for 57.9% of total revenue, with the biggest client accounting for nearly 11%.
WBL has developed multiyear relationships with leading Indian pharmaceutical companies, including Pfizer, Sanofi India, Cadila Healthcare, Emcure, Eris Life, Intas and Systopic Lab.
WBL’s number of domestic CDMO customers increased from 97 in FY19 to 143 to 204 in FY21. In FY20, it provided CDMO services to seven of the top 10 Indian formulations pharmaceutical companies.
Priced at FY21 P/E of 26.8x on upper band, WBL is among top five players in the fast moving domestic formulations CMDO industry with a strong track record and multiyear contractual relations with leading domestic formulations companies.
The company also has high asset turnover and return ratios. Hence, one need more time and clarity to capture the sustainability of asset turnover, return ratios and also progress towards strengthening of profitability ratios.
Having said that the financials of the company does look promising and risk taker investors can Subscribe it for either listing or long term gains..
Windlas Biotech Peers Comparison:
Although there are no listed companies in India that engage in business similar to that of Windlas Biotech. However, some of the main players in domestic formulations CDMO segment include Akums Drugs and Pharmaceuticals Ltd., Synokem Pharmaceuticals Ltd., Theon Pharmaceuticals Ltd., Innova Captab Ltd., Tirupati Medicare Ltd. Abbott Healthcare Ltd., Cipla Ltd. and Alkem Laboratories Limited.
Windlas Biotech IPO Details:
Windlas Biotech limited will sell shares at Rs 448-460 per share in its 3 day initial public offering starting on August 4 to 6, 2021.
The shares of Windlas Biotech IPO will be allotted on 11 August, 2021, The tentative date of Windlas Biotech IPO listing is around 17 August, 2021.
Windlas Biotech Objects of the Offer:
The company plans to use Rs 50 crore from the issue’s proceeds to expand capacity of its existing facility at Dehradun (Plant 4) and its injectables dosage capability at Dehradun (Plant 2).
Retiring long-term debt worth Rs 20 crore. Fund incremental working capital requirements for about Rs 48 crore. The rest will be used for general corporate purposes.
Windlas Biotech Issue break-up:
• QIB – 50% of the offer – ₹ 200.77 crores
• NIB – 15% of the 0ffer – ₹ 60.23 crores
• RET – 35% of the offer – ₹ 140.54 crores
Frequently Asked Question (FAQ):
1.What Is The Symbol For Windlas Biotech Limited ?
Ans: The Symbol is windlas
2.When Windlas Biotech IPO Coming?
Ans: The Issue Period for Windlas Biotech IPO is 4-Aug-2021 to 6-Aug-2021.
3. Post Modification Period For Windlas Biotech IPO?
Ans: The Post issue Modification Period for IPO is 9-Aug-2021 (10.00 A.M. to 11.00 A.M.).
4. What Is The Cut-off Time Period For UPI Mandate For Windlas Biotech IPO?
Ans: The Cut-off time for UPI Mandate Confirmation is 9-Aug-2021 (upto 12:00 PM).
5. What Is The Issue Type For Windlas Biotech IPO?
Ans: The Issue Type is 100% Book Building.
6.What Is The Price Band For Windlas Biotech IPO?
Ans: The Price (Band) Range for Windlas Biotech is Rs.448 to Rs.460 per equity share.
7. What Is The Lot Size For Windlas Biotech IPO?
Ans: The Bid Lot i.e. Minimum Order Quantity (lot size) for Windlas Biotech IPO is of 30 Equity Shares and in multiples thereof 30 Equity Shares.
8. Who Are The Book Running Lead Managers For Windlas Biotech IPO?
Ans: The Book Running Lead Managers are, SBI Capital Markets Limited, DAM Capital Advisors Limited, IIFL Securities Limited.
9. What Is The Face Value For Windlas Biotech IPO?
Ans: The Face Value is of Rs.5 whereas The Tick Size is of Rs.1
10. What Is The IPO Market Timings For Windlas Biotech IPO?
Ans: The IPO Market Timings is 10.00 a.m. to 5.00 p.m.
Apart from above points:
The Maximum Subscription Amount for Retail Investor is Rs. 2,00,000
The Name of the Registrar is Link Intime India Private Limited
The Contact person name number and Email id is Shanti Gopalkrishnan,+91 22 4918 6200,email@example.com
The Address of the Registrar is C-101, 1st Floor 247 Park Lal Bhadur Shastri Marg Vikhroli (West) Mumbai 400 083 Maharashtra, India
Where To Check Windlas Biotech IPO Application And Allotment Status?
As an investor or trader generally we are curious and anxious to know the results of the application as soon as possible. To ease the anxiety, both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have come up with dedicated pages and links which investors can use.
The NSE has an IPO bid verification module. It can be used to verify the IPO application details uploaded on the exchange bidding system by your member/bank. The data of the bid details uploaded by the member/bank would be available on T+1 day (where T would be date receipt of bid on NSE platform).
In addition, the data would be available until six days after the issue closure date. This gives the investor enough time to verify the data and instruct the member/bank to make any changes, if required.
Exchange will also provide allotment information as provided by the registrar to the issue.
An investor can avail this facility by registering using his/her PAN details. After registration, the investor will receive an email notification from NSE on the registered email address. That email will provide the login details.
The following link can be used for the same:
The BSE has also come up with a similar platform.
This unique facility allows investors to verify the status of their application submitted to a Trading Member or a SCSB (Self-Certified Schedule Banks).
The investor can check his application status/information on the website until one week after issue close.
The following link can be used by investors:
Important Things To Keep In Mind Before Applying For IPO’s:
- Try to fill for the same IPO online from different DP ID i.e. if in your family have more than 1 account you can possibly get the allocation done in case of over subscription.
- You should have a good knowledge of the sector and the company you are planning to invest.
- Analysis of the company’s balance sheet is very crucial. A clear understanding of the company’s future projects and vision is very necessary to know whether it will have a sustainable future.
- Investment decision has to be taken carefully and not in a hurry.
- Read as much as you can about the company, its objectives for launching the IPO, its past history in business and its futures prospectus.
- Don’t go for hype in the news, your analysis should be based on facts rather than gossips and rumors.
- Many IPOs are oversubscribed. What this means is that the demand for shares is much higher than the shares available for sale. In such a situation, it is no surprise that many investors fail to get any shares allotted to them. This is why it is advisable to apply for IPO shares on the last day of bidding. This way, one can have a good estimate on how large the subscription will be. Also, in that case, one should bid for just one lot and not unnecessarily lock up their capital.
The domestic formulations CDMO market has grown at a higher rate of 13% compared to the growth rate of 8.6% of the domestic formulations market (in terms of consumption) in the past five years.
The company believe this increasing use of outsourcing by pharmaceutical companies for launch of new products is
resulting in higher growth in the CDMO market and thereby, creating opportunities for it.
Let us checkout some of the strengths and risk factors for Windlas Biotech Ltd
Some of the qualitative factors and strengths of Windlas Biotech
- Leading player in fast growing CDMO market
- Innovative portfolio of complex generic products supported by
robust R&D capabilities
- Efficient, quality compliant manufacturing facilities with
significant entry barriers
- Long-term relationships with Indian pharmaceutical companies
Some of the Risk Factor for Windlas Biotech
- Delay or/and termination of contract
- Regulatory concern – Failure to comply with quality standard
- Steep competition
- Contractual obligations
Therefore, it is always advisable to go through Windlas Biotech IPO – RHP to know in detail about the company.
The only thing which should be bothering you is the research you did before applying for the IPO. Investing in IPO is risky as well as profitable.
Having said that you also need to keep in mind important things mentioned above before applying to IPO’s as the risk is always involved.
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All investments are subject to risks, which should be considered prior to making any investments. The above details are compiled from information available on public platforms. These are not buy or sell recommendations.