Windlas Biotech IPO opens next week; here is all need you to know

Dehradun based pharmaceutical formulations contract development and manufacturing organizations Windlas Biotech Rs 401.54 crore public issue is set to hit the street next week. Here are all the details about the offer.

Open and close date: The offer will open for subscription on August 04 and the bidding will close on August 06. The anchor book, if any, will open for a day before the issue opening, i.e. August 03.

Price band: The price band for the pharma company has been fixed at Rs 448-460 per share having a face value of Rs 5 per share.

Lot size: Investors can bid for a minimum of 30 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 13,800 at the higher end of the price band. A retail investor can at max apply for 14 lots or 420 shares for Rs 1,93,200.

Issue size: The Rs 401.54-crore public offer comprises fresh issuance of equity shares of Rs 165 crore, and an offer for sale (OFS) of 51,42,067 shares totalling Rs 236.54 crore. Promoter Vimla Windlass will sell 11.36 lakh equity shares, and investor Tano India Private Equity Fund II will offload its entire stake of 40,06,067 equity shares via the OFS.

Objective of issue: The company will utilise the net proceeds of fresh issue towards purchase equipment required for capacity expansion of our existing facility at Dehradun Plant IV. Rs 47.56 crore would be used working capital requirements and Rs 20 crore for repaying of certain borrowings. Some of the funds will also be used for meeting general corporate expenses.

What’s in it for retail investors: Not more than 50% of the total offer has been reserved for qualified institutional buyers, up to 35% for retail investors, and the rest 15% for non-institutional buyers.

About the company: Windlas Biotech Ltd is one of the leading companies in the pharmaceutical formulations contract development and manufacturing organizations (CDMO) segment in India. The company offers a range of CDMO services from product discovery to product development, licensing, and commercial manufacturing of generic products including complex generics.

Leading pharma companies such as Pfizer, Sanofi India, Cadila Healthcare, Emcure Pharmaceuticals, Eris Lifesciences, Intas Pharmaceuticals, and Systopic Laboratories Private are some of the marquee customers of the company. Its manufacturing facilities are located at Dehradun with an installed operating capacity of 7,063.83 million tablets/ capsules, 54.46 million pouch/ sachet, and 61.08 million liquid bottles.

Book Running Lead Managers and Registrar to the IPO: The book running lead managers to the issue are SBI Capital Markets, DAM Capital Advisors, and IIFL Securities. The registrar to the issue is Link Intime.

Issue timeline: The issue is likely to finalize the basis of allotment by August 11, and the initialization of refunds will take place by August 12. While the credit of equity shares to depository accounts of the allottee will be done on August 13. The pharma company is expected to make its stock market debut on August 17, 2021.