Windlas Biotech IPO – Issue Details, Review and Analysis

Windlas Biotech IPO – Issue Details, Review and AnalysisWindlas Biotech IPO Details

Windlas Biotech is coming up with IPO that would open for subscription on 4th August 2021. Windlas Biotech Limited is amongst the top five players in the domestic pharmaceutical formulations contract development and manufacturing organization (CDMO) industry in India in terms of revenue. Company is generating stable revenue growth in the last few years. Its margins are on declining mode. Should you invest in Windlas Biotech IPO? What are the risk factors in this IPO?

IPO Boom now

Currently there are dozen of companies lined up for IPO. Recently Glenmark Life Sciences IPO got closed. Currently Rolex Rings IPO is open for subscription and would close on 30th July, 2021. However, investors should review these IPOs carefully before investing.

What is Windlas Biotech Limited business all about?

Company is amongst the top 5 players in the domestic pharmaceutical formulations contract development and manufacturing organization industry in India in terms of revenue. With over two decades of experience in manufacturing both solid and liquid pharmaceutical dosage forms and significant experience in providing specialized capabilities, including, high potency, controlled substances and low-solubility, they provide a comprehensive range of CDMO services ranging from product discovery, product development, licensing and commercial manufacturing of generic products, including complex generics, in compliance with current Good Manufacturing Practices with a focus on improved safety, efficacy and cost.

In Fiscal 2020, its market share was approximately 1.5% in terms of revenue in the domestic formulations CDMO industry. In addition to providing services and products in the CDMO market, they also sell its own branded products in the trade generics and OTC markets as well as export generic products to several countries.

The prevalence of chronic diseases in India has been increasing in the last few years, specifically in certain key therapeutic categories, such as, anti-diabetic, cardiovascular, neuropsychiatry and respiratory therapies, that are treated with ‘multi-drug therapy’ by physicians, i.e., the specific use of two or more drugs for single or multiple chronic conditions in an individual. Moreover, multi-drug therapy has gained importance over the past few years in the healthcare sector and is expected to aid the growth of pharmaceutical consumption. Company has significant experience in developing and manufacturing generic fixed dose combinations.

Windlas Biotech IPO details

IPO Opening Date 04-Aug-21
IPO Closing Date 06-Aug-21
Issue Type Book Built Issue IPO
Face Value Rs 5 per equity share
IPO Price band Rs 448 to Rs 460 per equity share
Lot Size 30 Shares
Min Order Quantity 30 Shares
Listing at BSE and NSE
Issue Size Total IPO Size: Rs 401.54 Crores
i) OFS: Rs 236.54 Crores
ii) Fresh Issue: Rs 165 Crores

Windlas Biotech IPO RHP link

What are Windlas Biotech Limited competitive strengths?

1) Leading CDMO in India with a focus on the chronic therapeutic category.

2) Innovative portfolio of complex generic products supported by robust R&D capabilities.

3) Efficient and quality compliant manufacturing facilities with significant entry barriers.

4) Strong and long-term relationships with leading Indian pharmaceutical companies.

5) Consistent track record of financial performance.

6) Experienced Promoters and senior management with a professional and technically qualified team.

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What are the Objects of the Offer?

It has two objects of the offer for the IPO size of Rs 401.54 Crores

1) Offer for Sale (OFS) Rs 236.5 Crores: Under OFS selling shareholders would sell the shares and company would not get any proceeds from the issue.

2) Fresh issue of Rs 165 Crores: Fresh issue would be used towards funding the following:

i) Purchase of equipment required for (a) capacity expansion of its existing facility at Dehradun Plant – IV (b) addition of injectables dosage capability at its existing facility at Dehradun Plant-II.

ii) Funding incremental working capital requirements of the company.

iii)  Repayment/prepayment of certain of its borrowings.

iv) General corporate purposes.

Who are Windlas Biotech Limited Promoters?

Mr. Ashok Kumar Windlass, Mr. Hitesh Windlass, Mr. Manoj Kumar Windlass, and AKW WBL Family Private Trust are the promoters of the company.

How is the company financial track record?

Here are the total assets, revenues and profits of the company in the last 3-4 years.

Financial Year ending / Period ending (Amt in Mns)
Particulars FY18 FY19 FY20 FY21
Total Assets 2,898.9 2,981.8 3,384.9 2,961.2
Revenues 3,565.8 3,115.3 3,313.4 4,306.9
Profit After Tax 112.0 638.2 162.1 155.7
Profit % 3.14% 20.49% 4.89% 3.62%

Why to invest in Windlas Biotech IPO?

Here are the positive factors in this company.

1) Company has posted stable revenue growth in the last 3-4 years. Company revenues increased from Rs 356.5 Crores in FY2018 to Rs 430.6 Crores in FY2021. However, there is dip in FY2019 revenues compared to FY2018.

2) Windlas Biotech Limited is India’s leading pharmaceutical formulations contract development and manufacturing organizations (CDMO) segment company.

3) Company has innovative portfolio of complex generic products supported by robust R&D capabilities along with strong and long-term relationship with leading pharmaceutical companies in India.

Risk Factors in Windlas Biotech

1) Company generated thin margins of 3.6% for FY2021. Its margins are also dropped from FY2019/FY2020 to FY21 which is a major concern.

2) While company has strong relationship with Indian pharmaceutical companies and MNCs, they depend on the success of their relationship with such CDMO customers.

3) Company is subject to strict technical specifications, quality requirements and regular inspections by its CDMO customers

4) Its operations are dependent R&D capabilities. Its inability to identify and understanding new industry trends, technological advancements may adversely affect its business

5) Covid-19 pandemic and future pandemic can affect company business

6) Like any other pharma company, it is subject to regulation and failures to comply with regulatory requirement can adversely affect its business

7) They propose to enter in to manufacturing of injectables which is new business for the company. If they are unable to establish themselves, it can affect operations and cashflow might get affected.

8) Investors should read complete risk factors indicated in the RHP of the IPO document before investing in this IPO.

Windlas Biotech IPO dates for subscription, Allotment and Listing

Offer Open 04-Aug-21
Offer close 06-Aug-21
Finalization of Allotment 11-Aug-21
Initiation of Refunds 12-Aug-21
Credit to Demat Account 13-Aug-21
IPO Shares Listing Date 17-Aug-21

Is Windlas Biotech IPO Price is underpriced or overpriced?

Its IPO price band is Rs 448 to Rs 460.

1) On the upper price band of Rs 460 and EPS of Rs 8.7 for FY21, the P/E ratio works out to be 53x.

2) For the last 3 years average EPS of Rs 13.59, the P/E ratio is 34x.

3) Means, the company asking price of Rs 460 on the upper price band in the P/E range of 34x to 53x.

5) There are no listed peers in similar business to compare, hence we cannot ascertain whether the issue price is underpriced or overpriced. However, considering 34x to 53x in general, is fully priced.

What is Windlas Biotech IPO GMP?

GMP for Windlas Biotech IPO is not known as there are no trades yet. GMP is nothing but the premium at which the shares are trading in offline market. This is just an indication about IPO price as it is unorganized market.

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Windlas Biotech IPO – Review and Recommendation

Windlas Biotech Ltd is one of the leading pharmaceutical formulations contract development and manufacturing organizations (CDMO) in India. It has innovative portfolio of complex generic products supported by robust R&D.

Company generated stable revenue growth in the last 3-4 years.

Company’s generating low margins, and these are declining in the last 3 years which is one of the major concern. I am sure that in this bull run, investors would ignore such key point.

Windlas Biotech IPO price is fully priced.

While the margins are lower and IPO price is fully priced, considering positive factors and the current bull run, investors can subscribe to this IPO for listing gains only.

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Suresh KP


  1. Windlas is Wind loss…
    What is happening with this stack. It keep falling like falling knife.
    Do we need to sell and exit or keep it for long term 🙁
    You recommended for listing gain. since listed more than 10% less than allotment price, we are not able to sell it as it is keep falling.

  2. I have studied all the three issues that are going to open on 4 August. I express my sincere thanks to you for your critical analysis. I hope to receive your analysis in future as well.

  3. Thank you Sure ji, you are putting your views in every article are always clear, studied and transperant. Windlas IPO seems to be good one to apply, since you have perfectly analyzed.

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