The initial public offering (IPO) of Windlas Biotech has been subscribed 3.18 times on August 4, the first day of bidding. The issue has received bids for 1.94 crore equity shares as against 61.36 lakh shares offered, as per the subscription data on the exchanges.
The reserved portion of retail investors received 6.22 times subscription, while the part set aside for non-institutional investors is subscribed 34 percent. Qualified institutional buyers are yet to put in their bids.
The company has already raised up to Rs 120.46 crore through the anchor book launched on August 3, a day before the issue opening. It has allocated 26,18,706 equity shares to anchor investors at Rs 460 per equity share.
The price band for the IPO is Rs 448-460 per equity share and the company plans to raise Rs 401.53 crore at the higher end of the price band. The issue will close on August 6.
The IPO comprises a fresh issue of shares worth Rs 165 crore and an offer for sale of shares worth Rs 236.5 crore (51,42,067 equity shares) by existing selling shareholders.
Windlas Biotech is focusing on formulation CDMO and there is no peer company focusing solely on the CDMO model.
The company’s innovative portfolio of complex generic products supported by robust R&D capabilities, efficient and quality compliant manufacturing facilities with significant entry barriers, long-term relationships with Indian pharmaceutical companies and a consistent track record of financial performance provide for further growth visibility, says BP Equities.
“On the valuation front, at the upper price band, the issue is aggressively priced at 64.4x P/E considering the diluted equity shares and FY21 annualized earnings. However, considering all the positive factors mentioned above, we give a “Subscribe” rating on this issue for the long term,” said the brokerage.
First Published: IST