NEW DELHI: Windlas Biotech’s initial public offering (IPO) of Rs 401 crore was still going strong on the second day of Thursday’s bid submission. The issue was fully subscribed on the first day.
As part of the offer, applications were made for 18.104.22.1680 out of 61.36.252 shares that the company and its shareholders want to sell, which corresponds to a 4.43-fold subscription.
According to a circular uploaded on the BSE website, the company has already decided to distribute 26,18,706 shares of 460 rupees each to 22 funds for a total of 120.46 billion rupees.
Analysts believe there are ample opportunities for growth for the company. Hence, they said investors should draw long-term profits. The global formulation outsourcing market is projected to reach $ 28-32 billion by 2025 due to the growing demand for generics and biologics.
“Windlas focuses on formulating CDMO and there is no other company like it that focuses solely on the CDMO model. Given the yield ratios and profitability, the issue appears to be fully priced in. However, given the growth drivers for the CDMO sector and the opportunities available to the company, we are assigning a ‘long term subscription’ rating to the issue, ”said Rajnath Yadav of Choice Broking.
Taking into account adjusted earnings per share of Rs 7.14 following the FY-21 issue, the company will trade at a P / E of 64.39 with a market capitalization of Rs 1.003 billion. There are no publicly traded companies in India that have any business similar to the company.
The Dehradun-based company will raise Rs.165 billion through the issuance of new shares, while promoters and existing shareholders will be raising 51,42,067 shares valued at Rs.236 billion through an Selling Offer (OFS). The price range for the issue is Rs 448-460 per share.
Investors can bid for at least 30 stocks and then in multiples of 30 stocks. 50 percent of the net issue is reserved for qualified institutional buyers (QIBs), while 15 percent of the shares go to non-institutional investors (NIIs). 35 percent of the issue volume is intended for private investors.
The net proceeds from the new equity issue will be used to purchase equipment needed to expand the capacity of the existing facility at the Dehradun facility, repay debt and meet working capital requirements.