Windlas Biotech IPO: Opens today; Key details investors should know before investing

Windlas Biotech IPO: The initial public offering (IPO) of Windlas Biotech, manufacturer of pharmaceutical formulations, will open for subscription today, i.e., on Wednesday, August 4, 2021, at a price band of Rs 448-460 per share. The offer will be available till Friday, August 6, 2021.

This would be the second pharma company after Glenmark Life Sciences to launch IPO this year 2021.

Through the offer, Windlass Biotech aims to raise Rs 401.53 crore at the upper price band. Investors can bid for a minimum of 30 equity shares and in multiples of 30 equity shares thereafter. The minimum investment by the retail investor will be Rs 13,800 per lot and the maximum investment would be Rs 1,93,200 for 14 lots. Retail investors are allowed to invest up to Rs 2 lakh in the IPO.

The company has reserved up to Rs 50 per cent of the offer for qualified institutional buyers, 15 per cent of the offer for non-institutional bidders and the remaining 35 per cent for retail investors.

The initial public offer comprises a fresh issue of Rs 165 crore and an offer for sale of 51,42,067 equity shares by offer for sale. The offer for sale comprises a selling of 11,36,000 equity shares by Vimla Windlass, and 40,06,067 equity shares by Tano India Private Equity Fund II.

The net proceeds from the fresh issue will be utilised for the purchase of equipment required for capacity expansion of existing facility at Dehradun Plant – IV, the addition of injectables dosage capability at the existing facility at Dehradun Plant-II; incremental working capital requirements; repayment of certain of borrowings; and general corporate purposes. The company will not receive any proceeds from the offer for sale issue as the same money will go to selling shareholders.

SBI Capital Markets, DAM Capital Advisors and IIFL Securities have been appointed as book-running lead managers (BRLMs) of the issue. Link Intime India is the registrar of the issue.

Besides, Windlas Biotech, the pharmaceutical formulations company, has raised Rs 120.46 crore from the anchor investors on August 3, 2021, ahead of the issue opening. The company has allocated 25,18,706 equity shares to anchor investors at Rs 460 per equity share.

The prominent anchor investors who participated in the anchor book includes name like Macquarie, Optimix Wholesale Global Emerging Markets, Invesco Trustee, Kuber India Fund, and Elara India Opportunities Fund, ICICI Prudential, Nippon India, UTI MF, Sundaram MF, BNP Paribas, Avendus MF, and Canara HSBC also invested in the company.

Dehradun-based Windlas Biotech is one of the top five companies in the domestic pharmaceutical formulations contract development and manufacturing organization (CDMO) in India in terms of revenue. 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.