Windlas Biotech, the domestic pharmaceutical formulations contract development and manufacturing organisation (CDMO), to raise around Rs 401 crore through an initial public offering (IPO). The offer will open on August 4 and close on August 6.
Windlas Biotech IPO is priced at Rs 448-460 per equity share. In this IPO, there will be a sale of fresh issue aggregating up to Rs 165 crore and an offer for sale (OFS) of up to 5,142,067 equity shares. Tano India Private Equity Fund II, the investor selling shareholder, will sell up to 4,006,067 equity shares. The remaining OFS worth 1,136,000 Equity Shares will be sold by Vimla Windlass, promoter of the company.
Hitesh Windlass, Managing Director of the company said through this IPO, the investor will be exiting the company and the company will be able to raise funds to support its expansion. The company is looking at investing in the brownfield project to expand in the injectable segment. The company has presence in research, drug development, formulation manufacturing and packaging in pharmaceutical space.
Speaking to the Free Press Journal, Komal Gupta, CFO of Windlas Biotech said, “The company will invest around Rs 150 crore (to develop its infrastructure in injectable space).” The company plans to invest Rs 50 crore from the Rs 400-crore IPO in the injectables dosage capability. The remaining investment will be made in a few years time. Meanwhile, Hitesh Windlass added the growth from this facility is expected to come post 2025.
The company is amongst the top five players in the domestic pharmaceutical formulations CDMO industry in India in revenue terms. It has around 204 CDMO clients namely Pfizer, Sanofi, Zydus Cadila, Emcure, Eris, among others. “Only 5 per cent of business comes from export.” Over 90 per cent of the company’s business is from the domestic market.
The company will use the net proceeds from IPO for the purchase of equipment required for capacity expansion of the existing facility at Dehradun Plant – IV; in addition to injectables dosage capability at the existing facility at Dehradun Plant-II (for Rs 50 crore); Rs 47.56 crore for working capital requirements; and will also be repaying certain borrowings that is worth Rs 20 crore. At present, the company has around Rs 30 crore of debt. After the IPO, the debt is expected to be down by Rs 10 crore. Gupta added that the company despite debt has enough liquidity. Windlas Biotech has Rs 55 crore in banks, mutual funds and other liquid instruments.
The company has a license to manufacture around 3,279 products. As of March 2021, the company has four plants in Dehradun with 7 billion-plus tablets/ capsules capacity.
In the last three years, the revenue from operations grew by a CAGR of 18 per cent. In FY 2019, FY 2020, FY 2021, the revenue from operations was at Rs 307.3 crore, Rs 328.9 and Rs 427.6 crore respectively. The company has a market share of around 21 per cent.
