Windlas Biotech files DRHP with SEBI to raise funds via IPO

Overview of the Company and its IPO

Windlas Biotech Limited is an independent contractual manufacturer that serves both the international and Indian pharmaceutical sectors. The primary focus of the company is to meet global pharmaceutical manufacturing requirements by providing customers with cost-effective high-quality products efficiently.

Now a trusted household name in the Indian Pharma Industry, Windlas Biotech ventured into the marketing of pharmaceutical products in 2008. Windlas manufactures and markets formulations under its own brands within the domestic market as well as exporting its own formulations to Asia, Africa & Latin America.

On May 17th, 2021, Windlas Biotech Ltd chose to file a draft red herring prospectus with SEBI — the Securities Exchange Board of India- in order to raise funds via an IPO or initial public offering. The IPO issued will consist of a fresh issue of ₹165 crores.

Besides a fresh issue, there will be an additional offer for the sale of up to 5.14 million shares of the company by its current shareholders and promoters. As per the DRHP (Draft Red Herring Prospectus), Windlas Biotech Ltd. company will also consider a pre-initial public offering placement of up to ₹50 crores.

IPO Objectives

The IPO that is issued by Windlas Biotech Limited will result in proceeds that will be used for the purchase of equipment. This equipment is required for a capacity expansion of the facility that is currently at the Dehradun Plant  –  IV as well as the addition of an injectables dosage capability currently at the facility at Dehradun Plant-II.

Windlas Biotech Ltd IPO proceeds will also be utilized to fund the prepayment/repayment of certain borrowings, incremental working capital requirements, and other general corporate purposes.

Company Financials and Positions

As of March of 2021, the total outstanding borrowings of Windlas Biotech Ltd stood at₹32.16 crores. The company’s EBITDA decreased by 10.16 % over the previous year.

Its overall revenue of operations for the nine-month period that ended in December of 2020 was ₹320.79 crores. It was ₹254.87 crores a year prior.

For the same nine-month period, note that Windlas Biotech Ltd net profit has been ₹9.67 crores against ₹15.75 crores that were seen in the prior year.

As of now, the total registered charges for the company stand at ₹167.70 crores for 25 separate charges. Of this, ₹100.46 crores worth of charges for 9 different sources remains open while ₹67.24 crores from 16 sources has been satisfied and closed. Currently, HDFC Bank Ltd holds the highest charge against Windlas Biotech Ltd. that amounts to ₹23.30 crores.

Other Key Takeaways

Currently Windlas Biotech is among India’s top five players in terms of revenue when it comes to domestic pharmaceutical formulations as well as the contract development manufacturing organizations (CDMO) industry. The company has two strategic modes of operations; namely, domestic Trade Generics with OTC (over the counter) brands, in addition to exports.

Currently, the company both owns and operates out of four manufacturing facilities in Dehradun, Uttarakhand. As of last year in December, the company’s manufacturing facilities had an aggregate installed operating capacity of 61.08 million liquid bottles, 54.46 million pouch/sachet, and 7,063.83 million tablets/ capsules.

Wrapping Up

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