founded in 2001, is one of India’s top pharmaceutical formulations contract development and manufacturing organisations (CDMOs).
From product discovery to product development, licencing, and commercial manufacture of generic products, including complex generics, the firm provides a full spectrum of CDMO services.
The company’s current emphasis is on the development of complicated generic medicines in the chronic therapeutic category for lifestyle-related diseases.
CDMO Products and Services, Domestic Trade Generics, and Over-the-Counter (OTC) Market (Nutraceutical and Health Supplement Product) are the three verticals in which the company works. It also offers its own branded products in the generics and over-the-counter (OTC) sectors.
About the IPO
The SME IPO consists of a fresh issue of Rs 165 crore and an offer for the sale of 51,42,067 equity shares by existing selling shareholders.
The offer for sale consists of promoter Vimla Windlass selling 11.36 lakh equity shares and investor Tano India Private Equity Fund II selling 40,06,067 equity shares. Tano India Private Equity Fund would leave the firm through an offer for sale, selling its whole 22 per cent share.
Objectives of the IPO
Windlas Biotech will use the net proceeds from its new issue
to acquire equipment for capacity expansion of the current facility at Dehradun Plant – IV, as well as adding injectable dosage capabilities to the existing facility at Dehradun Plant-II (Rs 50 crore).); working capital requirements (Rs 47.56 crore); and repayment of certain borrowings (Rs 20 crore). The firm is currently in debt to the tune of Rs 30 crore. The debt is expected to be reduced by Rs 10 crore following the IPO
|Windlas Biotech IPO details|
|Subscription Dates||4 – 6 August 2021|
|Price Band||INR448 – 460 per share|
|Fresh issue||INR165 crore|
|Offer For Sale||5,142,067 shares (INR230.36 – 236.53 crore)|
|Total IPO size||INR395.36 – 401.53 crore|
|Minimum bid (lot size)||30 shares|
|Face Value||INR5 per share|
|Listing On||NSE, BSE|
- the company’s cash flow from operations was positive in the previous three financial years.
the company’s revenue increased by only 7 per cent CAGR in the last three years.
- In the preceding three financial years, the company’s cash flow from operations was positive.
- As of FY21, the company’s net debt is minimal (about Rs 20 lakh), and its interest-coverage ratio is roughly 42 times.
- the company can run its operations without relying on outside funding
- In FY21, the company’s short-term borrowings grew by 40%, compared to about 23% in FY20.
- the business is free of significant contingent liabilities
- While the current return on equity is around 18%, the three-year average return on equity is 11.71%.
- Similarly, while the current ROCE is 20.2 per cent, the average ROCE over the last three years has been 16 per cent.
- Take advantage of expansion possibilities by utilising your CDMO market-leading position.
- Continue to expand the CDMO’s clientele.
- Enhance R&D and production capacity to expand product portfolio and delivery methods.
- By leveraging on industry possibilities, focus on the domestic trade Generics and OTC Brands SBV and high-growth export markets.
A move into the high-growth injectable market
The firm is concentrating on developing and launching complicated generic medicines in the chronic therapeutic category for lifestyle-related diseases. The company supplies seven of India’s top ten pharmaceutical companies.
In terms of revenue, it is one of the top five companies in India’s domestic pharmaceutical formulations contract development and manufacturing organization (CDMO) market-consistent revenue growth the company has a negligible amount of net debt (around Rs 20 lakh) and its interest-coverage ratio was around 42 times as of FY21.
We recommend subscribing to this IPO. Multi-drug therapy has gained relevance in the healthcare industry over the last few years and is projected to help the expansion of pharmaceutical consumption.it is one of India’s major contract development and manufacturing firms (CDMO) for pharmaceutical formulations.
It also intends to enhance its capacity with the funds obtained, which will benefit the firm in the long run.