Windlas Biotech Limited wrapped up its initial public offering (IPO) of Rs 401.54 crore on Friday. The public issue saw healthy participation from investors as it closed its trading this week. The issue was subscribed a total of 24.22 times at the end of day three of its IPO. For the Windlas Biotech IPO, the qualified institutional buyers (QIBs) and the retail investors subscribed most of all the investor categories. The QIB segment had subscribed to the issue a total of 24.40 times. Over the past three days of trading, the retail investor category subscribed to the IPO 24.22 times. The non-institutional investors on the other hand had subscribed 15.73 times to the issue. The issue garnered bids of 13.78 crore equity shares against its issue size of 61.36 lakh equity shares according to subscription data on the exchanges. The company managed to raise Rs 120.46 crore through its anchor investors a day before the issue opened.
The basis of allotment for the issue was listed as August 11, which is most likely when it will happen. The refunds to the unlucky bidders and the accreditation of shares will likely take place on August 12 and August 13 respectively. The company is also eyeing a listing date of August 17, however, that is yet to be finalised.
The Windlas Biotech IPO had an issue size of Rs 401.54 crore. It was made up of a fresh issue worth Rs 165 crore and an offer for sale (OFS) worth 236.54 crore with 5,142,067 equity shares that came with a face value of Rs 5 per equity share. The price band for the IPO was listed as Rs 448 to Rs 460 per equity share. The company plans to use the proceeds to fund the purchase of equipment for the capacity expansion of our existing facility at Dehradun Plant IV. The rest of the funds will go towards financing incremental working capital requirements of the company, the Repayment/prepayment of the company’s borrowings and general corporate purposes.
The grey market premium (GMP) for the issue stood at Rs 90 on August 7. This indicated that the shares were trading at a premium of Rs 538 to Rs 550 per share on the unlisted market.
The company financials indicated that three business verticals – CDMO Services and Products, Domestic trade and OTC Brand, as well as Exports, accounted for the bulk of the revenue that the company saw in FY21, with them accounting for 84.66 per cent, 10.22 per cent and 4.25 per cent of the revenue for that period respectively.
While commenting on the strong customer base of the company, ICICI Direct said in a note, “WBL has developed multiyear relationships with leading Indian pharmaceutical companies, including Pfizer, Sanofi India, Cadila Healthcare, Emcure, Eris Life, Intas and Systopic Lab. WBL’s number of domestic CDMO customers increased from 97 in FY19 to 143 to 204 in FY21. In FY20, it provided CDMO services to seven of the top 10 Indian formulations pharmaceutical companies.”
Exxaro Tiles IPO
The Exxaro Tiles IPO also saw good participation from investors as it was subscribed a total of 22.65 times at the end of the third day of trading. The company saw the most subscriptions from the retail category that had subscribed to the issue a total of 40.05 times. The QIBs and NIIs had subscribed to the issue a total of 17.67 times and 5.36 times respectively. The company also saw subscriptions from its employees who had subscribed 2.53 times against their allotted share.
The basis of allotment and listing dates for the issue stand as August 11 and August 17 respectively, however, this is tentative.
The IPO had an issue size of Rs 161.09 crore that consisted of a fresh issue worth Rs 134 crore. It also contained an OFS worth Rs 26.86 crore with 2,238,000 equity shares with a face value of Rs 10 per share. The price band of the IPO was listed as Rs 118 to Rs 120 per equity share.
The GMP of the issue stood at Rs 20 on August 7. This pointed to the shares trading at Rs 138 to Rs 140 per share on the unlisted market.
Speaking on the company financials Reliance Securities said in a note, “ETL has delivered an impressive earnings performance during last two years. While its revenue and EBITDA clocked 3% and 12% CAGR, respectively over FY19-FY21, PAT recorded a healthy 31% CAGR over the same period. Notably, its EBITDA margin improved from 15.6% in FY19 to 18.5% in FY21.”
Reliance Securities added this saying, “In our view, while tiles and ceramic players are expected to see healthy traction owing to revival in real estate sector and visible improvement in export opportunities, stretched WCC will be the key motorable for ETL in the ensuing period.”
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