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Windlas Biotech Limited IPO : All You need to Know

Windlas Biotech has been a market dominator in the field of CDMO. The company has various tie ups and daily business with some of the renowned pharmaceuticals of India. Some of them are Sanofi India Ltd., Pfizer Ltd., Cadila Healthcare etc. It has a manufacturing facility in Dehradun. The capacity ranges to approx. 7000 Million Tablets, 61 Million Bottles of liquid and 54 Million pouches and sachtes.

The company functions into three sections : CDMO business, Export business and Domestic business with OTC markets. Recently the company has announced that it wants to focus on developing lifestyle related generic products for chronic diseases.

IPO DETAILS

The WINDLAS BIOTECH LIMITED IPO is set to launch on 4th Aug, 2021. The subscription timeline extends till 6th Aug, 2021. The size for the IPO is 401.54 Crore Rs. Shares issued through Offer for sale are 236.54 Crore Rs. Shares worth Rs. 165 Crore are issued through Fresh issue. The minimum lot size is 30 shares and the price is set at 448 Rs. – 460 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 5 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	4th Aug, 2021
IPO CLOSING DATE	6th Aug, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	5 Rs. per share
IPO price band	448 Rs. – 460 Rs.
LOT SIZE	30 shares
MINIMUM ORDER QUANTITY	30 shares
ISSUE SIZE	401.54 Crore Rs.
OFFER FOR SALE	236.54 Crore Rs.
FRESH ISSUE	165 Crore Rs.
LISTING AT	NSE, BSE
LISTING DATE	17th Aug, 2021

IMPORTANT DATES

IPO OPENING DATE	4th Aug, 2021
IPO CLOSING DATE	6th Aug, 2021
IPO ALLOTMENT DATE	11th Aug, 2021
REFUNDS	12th Aug, 2021
DEMAT A/C CREDITED ON	13th Aug, 2021
IPO LISTING DATE	17th Aug, 2021

The Windlas Biotech Limited IPO begins for subscription from 4th Aug, 2021. The IPO subscription would continue till 6th Aug, 2021. The allotment status for the shareholders who applied would come on 11th Aug, 2021. The refunds for the ones who did not get allotment would be initiated on 12th Aug, 2021. The DEMAT accounts of shareholders would be credited on 13th Aug, 2021. The listing of the company would be accompanied on 17th Aug, 2021.

PROMOTER AND LEAD MANAGERS

The promoters for the company are Hitesh Windlass, Ashok Kumar Windlass, AKW WBL Family Pvt Trust and Manoj Kumar Windlass.

The lead managers for the company are :

IIFL Holdings Limited
DAM Capital Advisors Ltd
SBI Capital Markets Limited

The minimum lot size for the company is decided at 30 shares. This holding accounts to Rs. 13800. The maximum lot size is decided at 420 shares. This amounts to Rs. 193200. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	30 shares	13800 Rs
Maximum	420 shares	193200 Rs

OBJECTIVES FOR THE IPO

The money from the IPO can also be utilized to meet general corporate purposes.
The company wants to expand into lifestyle related generic medications for chronic therapeutic treatments. Hence the IPO money would be used for its expansion planning and development of required facilities.
The company has also mentioned some money to be utilized for payments of its dues and borrowings.

COMPANY FINANCIALS

Particulars (in Million Rs.)	2019-20	2018-19	2017-18
ASSETS	3384	2981	2898
REVENUE	3313	3115	3565
NET PROFIT	162	638	111

The company has a good asset base. It has been growing every year. However the rate of growth is very slow. The competition in the market is quite tough and the company needs to be quick to maintain its domination position in the market. The revenue data is not displaying any growth. They have been stagnant and even deteriorating in later stages. Thus the expansion plans play a major role in determining the company’s future financial performance.

The profits of the company have been great for the 2018-19 period. However the gradual decrease in 2019-20 shows that the company has not been keeping up with the money spent on asset base. On the other hand data from Dec 2020 indicate only 98 Crore Rs of profits. This has been a sign of constant decrease in the amount of profit earned.

PROS

Company has its own manufacturing facility in Dehradun.
Windlass focused on three business segments CDMO, Exports and OTC business.
The company has further expansion plans. The field opted for the same is chronic Therapeutic generic medications.

CONS

The financial track record of the company has been wrecked due to COVID situation.
The profitability of Windlass has taken a huge hit during the last year.