Windlas Biotech’s IPO has been subscribed 13.23 instances so far on the final day of subscription. The Rs 401.5 crore IPO of Windlas Biotech was completely subscribed by investors on the initially day of sale and has continued to get sturdy interest by way of the subscription window. The IPO consists of a fresh problem of equity shares worth Rs 165 crore when the remaining is an present for sale by current shareholders. Windlas Biotech (WBL) is amongst the prime 5 players in the domestic pharma formulations CDMO business in India in terms of income with a 1.5% industry share.
Retail investors have subscribed the problem 19.42 instances so far, bidding for 5.99 crore equity shares against 30.88 lakh shares on present for them. Qualified Institutional Buyers (QIB) have subscribed the IPO 7.40 instances, tendering bids for 1.27 crore shares when non-institutional investors (NII) have subscribed their portion of the IPO 6.87 instances. Overall bids have been received for 8.18 crore equity shares, against the 61.36 lakh provided by way of the IPO. 50% of whole IPO was reserved for QIBs, 35% has been kept for retail investors, leaving 15% for NIIs.
In the unlisted space, Windlas Biotech was trading at a premium of Rs 150 per share earlier this week but trading in the grey industry has considering that waned, mentioned Manan Doshi, Cofounder of UnlistedArena, who tracks grey industry premiums. “The pricing of the issue is fully priced in and the premium seen earlier was backed by euphoria. The interest in the market has been divided with a number of IPOs available for investors at this stage,” he added.
Analysts at ICICI Securities think that Windlas Biotech’s IPO has been priced at FY21 P/E of 26.8x on the upper finish of the IPO value band but has not prices the public problem adding that The organization also has higher asset turnover and return ratios but will will need more time and clarity to gauge the sustainability of asset turnover, return ratios and also progress towards strengthening of profitability ratios.
Meanwhile, Choice Broking has a ‘Subscribe for long-term’ rating on the IPO. “At the higher price band of Rs. 460, the company is demanding a P/E valuation of 26.6x (to its restated FY21 EPS of Rs. 17.3). 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 problem,” they mentioned. The brokerage firm added that there is no peer organization focusing solely on the CDMO model.