Windlas Biotech, a pharmaceutical formulations contract development and manufacturing organisation, will launch its initial public offering (IPO) on August 4. The company has fixed the price band at Rs 448-460 per equity share for the public issue.
The offer will close on August 6 and the anchor book, if any, will open for a day on August 3, a day before the issue opening.
QSR chain operator Devyani International will also be floating its IPO on the same day, August 4. Devyani International is the largest franchisee of Pizza Hut, KFC, and Costa Coffee in India.
Windlas Biotech 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. The company plans to raise Rs 401.53 crore at the upper end of the price band.
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 (or 22 percent of pre-offer paid-up equity) via offer for sale.
The company proposes to utilise the net proceeds from the issue for the purchase of equipment required for capacity expansion of existing facility at Dehradun Plant – IV, & addition of injectables dosage capability at the existing facility at Dehradun Plant-II (Rs 50 crore); working capital requirements (Rs 47.56 crore), and repaying of certain borrowings (Rs 20 crore).
The IPO market lot size is 30 shares. A retail-individual investor can apply for up to 14 lots.
SBI Capital Markets, DAM Capital Advisors, and IIFL Securities are the book running lead managers to the issue.
Ashok Kumar Windlass, Hitesh Windlass, Manoj Kumar Windlass, and the Promoter Trust are the promoters of the company. Promoter and promoter group held 78 percent stake in Windlas Biotech including Vimla Windlass’s 7.8 percent shareholding.
Windlas Biotech is amongst the top five players in the domestic pharmaceutical formulations contract development and manufacturing organization (CDMO) industry in India in terms of revenue.
The company’s customers include pharma companies like Cadila Healthcare, Pfizer, Sanofi India, Emcure Pharmaceuticals Ltd, Eris Lifesciences Ltd, Intas Pharmaceuticals Ltd, and Systopic Laboratories Pvt Ltd.
In FY20, Windlas Biotech’s market share was approximately 1.5 percent in terms of revenue in the domestic formulations CDMO industry.
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.