The offer received applications for 2,72,13,330 shares out of 61,36,252 shares that the company and its shareholders intend to sell, meaning a subscription of 4.43 times.
The company has already decided to allocate 26,18,706 equity shares at Rs 460 apiece to 22 funds aggregating to Rs 120.46 crore, according to a circular uploaded on BSE website.
Analysts believe there is ample growth opportunity for the company. Hence, they said investors should subscribe for long-term gains. The global formulations outsourcing market is expected to reach $28-32 billion by 2025 owing to the growing demand for generics and biologics.
“Windlas is focusing on formulation CDMO and there is no peer company focusing solely on the CDMO model. Considering its return ratios and profitability, the issue seems to be fully priced. But factoring the growth drivers of the CDMO sector and opportunities available for the company, we assign a ‘subscribe for long term’ rating for the issue,” said Rajnath Yadav of Choice Broking.
Considering the FY-21 adjusted EPS of Rs 7.14 on post issue basis, the company is going to list at a PE of 64.39 with a market cap of Rs 1,003 crore. There are no listed companies in India that engage in a business similar to that of the company.
The Dehradun-based firm will raise Rs 165 crore through issuance of fresh equity shares, while promoters and existing shareholders will offload 51,42,067 equity shares worth Rs 236 crore via offer-for-sale (OFS). The price band for the issue is Rs 448-460 per share.
Investors can bid for a minimum of 30 equity shares and in multiples of 30 shares thereafter. 50 per cent portion of the net issue is reserved for qualified institutional buyers (QIBs), whereas 15 per cent stake will be allotted to non-institutional investors (NIIs). Retail investors will have 35 per cent of the issue size earmarked for them.
The net proceeds from the fresh equity issue will be utilised for purchase of equipment required for capacity expansion of existing facility at Dehradun plant, repaying of borrowings and working capital requirements.
