Windlas Biotech Ltd. The company was incorporated in 2001 based in Dehradun.
The Company operating with 3 business verticals - 1. CDMO Products and
services, 2. Domestic trade generics and Over-the-counter (OTC) market 3.
Exports. The company currently owns and operates four manufacturing facilities
located at Dehradun in Uttarakhand. As of March 31, 2021, their manufacturing
facilities had an aggregate installed operating capacity of 7,063.83 million
tablets/capsules, 54.46 million pouch/ sachet and 61.08 million liquid bottles.
Positives: (a) Leading CDMO in India with a focus on the chronic therapeutic
category. (b) Promoter having experience of over two decades in manufacturing
both solid, liquid, and CDMO business along with a good regulatory compliance
track record. (c) Innovative portfolio of complex generic products supported by
robust R&D capabilities. (d)Provides CDMO services to 7 of the top-10 Indian
Pharmaceutical formulations companies. Clients like – Pfizer, Sanofi, Cadila, etc.
Investment concerns: (a) High dependency on CDMO business, 85% of FY2021
revenues. Any slow down in CDMO business can hurt the company’s growth
outlook. (b)Companies top-10 customers contributed 58% of revenue, company
highly dependent on them. (c)Working capital days have increased from 13 days
in FY2020 to 70 days in FY2021.
Outlook & Valuation: Based on FY-2021 adjusted earnings, IPO is priced at PE of
22.2x and EV/EBITDA of 15.58x at the upper band of the IPO price, which is
slightly better than the peer’s companies. The Company has a very healthy
balance sheet with negative Net Debt/ Equity. Quality CDMO business has huge
potential in India in the near future and the company having a good regulatory
compliance track record. We expect the upcoming expansion plan in Dehradun
and increase in capacity utilization will be the next growth drivers for the
company. We are assigning a “SUBSCRIBE” recommendation to the issue.
Objectives of the Offer
- Purchase of equipment required for capacity expansion of their existing facility at the Dehradun. (50 Cr)
- Funding incremental working capital requirements of the Company. (47.5 Cr)
- Repayment of certain borrowings (20 Cr.)
| Issue Open | Aug 4, 2021 |
| Issue Close | Aug 6, 2021 |
| IPO Price | ₹448 - ₹460 |
| Face Value | ₹5 |
| IPO Size | ₹401.54 Cr |
| Listing At | BSE, NSE |
| IPO Lot Size | 30 |
Windlas Biotech IPO Timetable
| IPO Opens On | Aug 4, 2021 |
| IPO Closes On | Aug 6, 2021 |
| Finalisation of Basis of Allotment | Aug 11, 2021 |
| Initiation of Refunds | Aug 12, 2021 |
| Credit of Shares to Demat Account | Aug 13, 2021 |
| IPO Listing Date | Aug 17, 2021 |
#WindlasBiotechIPO
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