Windlas Biotech, Exxaro Tiles listing: Grey market premium ahead of debut

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26 Aug, 2025 12:21

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Domestic pharmaceutical formulations contract development & manufacturing organization Windlas Biotech shares traded at around 17-18 percent premium, and vitrified tiles manufacturer Exxaro Tiles shares at a premium of 8.3 percent in the grey market ahead of listing on August 16.

Windlas and Exxaro opened their public issues on August 4 and will close on August 6 after being subscribed 22.47 times and 22.68 times, respectively.

These companies raised Rs 401.54 crore and Rs 161.09 crore through public issues at a price of Rs 460 and Rs 120 per equity share, respectively.

Windlas Biotech will utilise net proceeds from fresh issue of Rs 165 crore for purchase of equipment required for capacity expansion of existing facility at Dehradun Plant – IV, addition of injectables dosage capability at existing facility at Dehradun Plant-II; incremental working capital requirements; and repaying of debts. Exxaro Tiles will use fresh issue proceeds (134 crore) for repaying of loans, working capital and general corporate purposes.

Windlas Biotech shares were available at Rs 80-85 or 17.4-18.5 percent premium in the grey market, resulting into a price of Rs 540-545 against issue price of Rs 460 per share, the IPO Watch and IPO Central data showed.

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"The grey market premium is showing strong sentiments and confidence among investors. The IPO was aggressively subscribed at 64 times to P/E, however, the company has posted a CAGR of 18 percent to 19 percent in operating profit from FY19-FY21," said Gaurav Garg, Head of Research at CapitalVia Global Research.

Windlas Biotech provides a comprehensive range of contract development and manufacturing organization (CDMO) services in compliance with current good manufacturing practices (GMP) with a focus on improved safety, efficacy and cost. In addition to providing services and products in the CDMO market, the company also sells own branded products in the trade generics and over-the-counter (OTC) markets as well as export generic products to several countries.

Investors traded Exxaro Tiles shares at a price of Rs 130, which is at a premium of Rs 10 or 8.3 percent over issue price of Rs 120 per share, the data suggests.

"The tile industry in the country is a fragmented one with a few established players and thus not very attractive segment like others. The grey market premium seems justified as the valuations seem stretched a bit as of now with the return on equity aspect which is lower than its peers," said Gaurav Garg.

Exxaro Tiles manufactures and sells double charge vitrified tiles and glazed vitrified tiles, through more than 2,000 dealers in 24 states and Union Territories in FY21. The tiles are also exported to over 12 countries including Poland, the United Arab Emirates, Italy and Bosnia.

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