Moneycontrol PRO
Upcoming Webinar:Join us for 'The Future Techshot' on Sept 22, 10:30am to gain insights into role of tech in streamlining businesses. Register Now!
you are here: HomeNewsBusinessIPO

Subscribe to Windlas Biotech: Choice Equity Broking

Choice Equity Broking has come out with its report on Windlas Biotech. The research firm has recommended to ''Subscribe'' the ipo in its research report as on July 30, 2021.

August 03, 2021 / 11:50 PM IST
  • bselive
  • nselive
Todays L/H

Choice Equity Broking IPO report on Windlas Biotech

Pharmaceutical formulations contract developer and manufacturer Windlas Biotech Ltd. (WBL), is planning to raise up to Rs. 400cr through an IPO, which opens on 4th Aug. and closes on 6th Aug. 2021. The price band is Rs. 448 - 460 per share. • The issue is a combination of fresh and OFS. The company will not receive any proceeds from the OFS portion. Of the net proceeds from the fresh issue, Rs. 50cr will be utilized for capacity expansion and addition of injectable dosage facility at its existing facilities, Rs. 47.5cr will be used to fund the working capital requirement and another Rs. 20cr will be used to repay/prepay certain debt availed by the company. • Through the OFS, Tano India Private Equity (investor selling shareholder) is fully offloading its 22% stake.

Valuation and Outlook

WBL is focusing on formulation CDMO and there is no peer company focusing solely on the CDMO model. At higher price band of Rs. 460, the company is demanding a P/E valuation of 26.6x (to its restated FY21 EPS of Rs. 17.3). Considering its return ratios and profitability, the issue seems to be fully priced. But factoring the growth drivers of the CDMO sector and opportunities available for the company, we assign a “Subscribe for Long Term” rating for the issue.

For all IPO stories, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research

stay updated

Get Daily News on your Browser
ISO 27001 - BSI Assurance Mark