IPO-bound Windlas Biotech plans to build CDMO injectable biz, trade generics
Hitech Windlas, Managing Director of Windlas Biotech in an interview to Moneycontrol said the company plans to use about 50 crore of the proposed IPO proceeds as capex to build new injectable unit at Dehradun Plant-II, about 20 crore will be for debt repayment, the remaining for working capital and general corporate practices.
August 04, 2021 / 12:34 IST
Windlas Biotech, which will open its initial public offering (IPO) on August 4, said it plans to invest the proceeds of the offer to build an injectable business to support its contract development, manufacturing business, and to repay debt.The company has fixed a price band of Rs 448-460 a share for its initial share sale. At the upper end of the price band, the initial share sale will fetch Rs 401.53 crore. The IPO comprises fresh issuance of equity shares worth Rs 165 crore and an offer for sale of up to 5,142,067 equity shares. Bids can be made for a minimum of 30 equity shares and in multiples of 30 equity shares thereafter.The promoters and private equity firm Tano India Private Equity Fund II will be selling shares.Hitech Windlas, Managing Director of Windlas Biotech in an interview to Moneycontrol said the company plans to use about Rs 50 crore of the proposed IPO proceeds as capex to build a new injectable unit at Dehradun Plant-II, about Rs 20 crore will be for debt repayment and the remaining for working capital and general corporate practices.Windlas which is primarily into contract development and manufacturing services (CDMO) - makes drugs for seven of the top 10 Indian pharmaceutical companies. The company uses its four facilities in Dehradun, Uttarakhand with seven billion plus doses of capacity, of which it currently produces about 3.3 billion unit doses."In the CDMO business we own the technology and intellectual property (IP) to manufacture formulations, our partners sell them in their own label," Windlas said.Windlas added that the company has multiple products such as fixed-dose combinations for diabetes like vildagliptin and teneligliptin combinations.The company had revenues of Rs 427 crore in FY21, of which 85 percent came from CDMO. The remaining 10 percent comes from trade generics, where it sells without medical representatives in rural and small towns and the rest five percent from exports. The company plans to launch drugs in the US have taken a hit, with one of its facilities facing regulatory issues.
Viswanath Pilla is a business journalist with 14 years of reporting experience. Based in Mumbai, Pilla covers pharma, healthcare and infrastructure sectors for Moneycontrol.
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