Windlas Biotech, one the top five players in the domestic pharmaceutical formulations contract development and manufacturing organization industry in terms of revenue, is expected to finalise the share allotment on August 11, after closing the initial public offering last week.
The pharma company has mobilised Rs 401.53 crore through its public issue that was subscribed 22.47 percent during August 4-6 on account of strong response from investors.
The portion set aside for qualified institutional buyers was subscribed 24.4 times, non-institutional investors subscribed 15.73 times, and retail portion was booked 24.27 times.
The IPO, with a price band of Rs 448-460 per equity share, had comprised a fresh issue of Rs 165 crore and an offer for sale of Rs 236.53 crore by Vimla Windlass, and Tano India Private Equity Fund II.
Through its net fresh issue proceeds, the company will purchase equipment required for capacity expansion of existing facility at Dehradun Plant – IV & addition of injectables dosage capability at existing facility at Dehradun plant-II, besides using money for incremental working capital requirements and repaying of debts.
Windlas Biotech is going to finalise the IPO share allotment today, as per the public issue schedule published in the company's prospectus.
Investors are provided with two options to check their application status.
First, they can check the share allotment on IPO registrar's website, wherein they can select 'Windlas Biotech Limited - IPO', and enter either PAN Number or Application Number or DPID/Client ID or Account Number/IFSC. Finally they have to enter Captcha and click on Submit button to know the allotment status.
The second option is BSE website. Investors have select 'Equity' and 'Issue Name' (Windlas Biotech Limited), and then enter 'Application number' and 'PAN Number'. Finally click on search button to know the application status.
After the share allotment, the funds will be refunded or unblocked from ASBA account to ineligible investors on August 12 and eligible investors will get their shares in the demat account on August 13.
Finally the trading in equity shares will begin with effect from August 16. The company has approval from BSE and National Stock Exchange for listing of equity shares.
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Windlas Biotech shares were available for trading at a premium of Rs 65 or 14.1 percent in the grey market, compared to expected final issue price of Rs 460, the IPO Watch data showed. The trading price comes to Rs 525 per share.
The company provides a comprehensive range of CDMO services ranging from product discovery, product development, licensing and commercial manufacturing of generic products, including complex generics.
With increasing globalization and focus of large pharmaceutical players on cutting costs and optimizing operations, CDMOs have seen significant acceptance in the pharmaceutical industry internationally over the last few years. 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 Windlas Biotech.
Its market share was approximately 1.5 percent in terms of revenue in the domestic formulations CDMO industry in FY20.
The company has developed relationships with leading Indian pharmaceutical companies, including Pfizer, Sanofi India, Cadila Healthcare/ Zydus Healthcare, Emcure Pharmaceuticals, Eris Lifesciences, Intas Pharmaceuticals and Systopic Laboratories. The number of domestic CDMO customers that company have catered to have increased from 97 in FY19, to 204 in FY21.Disclaimer: The views and investment tips expressed by investment expert on Moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.