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Published on Tuesday, August 3, 2021 by Chittorgarh.com Team
Windlas Biotech Limited, one of the leading domestic pharmaceutical formulations CDMO will open its IPO on August 4th to August 6th 2021.
The price band has been fixed for Rs 448-460 a share.
The IPO comprises fresh issuance of equity shares worth Rs 165 crore and and an offer for sale of up to 5,142,067 equity shares. At the upper end of the price band, the IPO will fetch Rs 401.53 crore.
The proceeds from the IPO will be utilised for purchasing of equipment required for capacity expansion of the facility at Dehradun Plant -IV and addition of injectables dosage capability at the facility at Dehradun Plant-II. It will also be used for funding incremental working capital requirements, repayment/ prepayment of certain of borrowings and general corporate purposes.
Windlas Biotech Limited is amongst the top five players in the domestic pharmaceutical formulations contract development and manufacturing organization in India in terms of revenue (Source: CRISIL Report). The company is operational from over two decades and is into manufacturing of both solid and liquid pharmaceutical dosage forms. Windlas is focused on launching new complex generic products in the chronic therapeutic category linked to lifestyle related disorders The Company has an innovative portfolio of complex generic products supported by robust R&D capabilities. It currently owns and operates four manufacturing facilities located at Dehradun in Uttarakhand Over the years, it has developed relationships with leading Indian pharmaceutical companies, including Pfizer Limited, Sanofi India Limited, Cadila Healthcare Limited/ Zydus Healthcare Limited, Emcure Pharmaceuticals Limited, Eris Lifesciences Limited, Intas Pharmaceuticals Limited and Systopic Laboratories Private Limited. It has demonstrated consistent growth in terms of revenues and profitability
Book running lead managers to the issue are SBI Capital Markets Ltd, DAM Capital ad IIFL Securities.
Windlas Biotech Limited will be raising funds through initial public offering through fresh issue aggregating up to 165.0 Crore (The 'Fresh Issue') and offer for sale comprising up to 1,136,000 equity shares of face value of Rs. 5 each.
The proceeds from the issue is proposed to be utilise towards (a) Purchase of equipment required for (i) capacity expansion of our existing facility at Dehradun Plant - IV; and (ii) addition of injectables dosage capability at our existing facility at Dehradun Plant-II; (b) Funding incremental working capital requirements of our Company; (c) Repayment/prepayment of certain of our borrowings; and (d) General corporate purposes.
Windlas Biotech Limited is amongst the top five players in the domestic pharmaceutical formulation contract development and manufacturing organisations ('CDMO') industry in India in terms of revenue (Source: CRISIL Report). The company has two decades of experience in manufacturing both solid and liquid pharmaceuticals dosage forms and significant experience in providing specialized capabilities, including high potency, controlled substances and low solubility.
The Company provide a comprehensive range of CDMO services ranging from product discovery, product development, licensing and commercial manufacturing of generic products, including complex generics, in compliance with current Good Manufacturing Practices ('GMP') with a focus on improved safety, efficacy and cost. In addition to providing services and products in the CDMO market, Company also sells its own branded products in the trade generics and OTC markets as well as export generic products to several countries.
The Company has three distinct strategic business verticals ('SBVs') such as (i) CDMO Services and Products; (ii) Domestic Trade Generics and over-the-counter ('OTC') Brands; and (iii) Exports.
In fiscal 2021, CDMO Services and Products SBV accounted for 84.66% of total revenue from operations. Revenues from CDMO Services and Products SBV increased at a CAGR of 18.63% from Rs. 26 Crore in fiscal 2019 to Rs. 362.03 Crore in Fiscal 2021.
Company's complex generic products portfolio primarily comprises fixed dosage chewable or dispersible. Complex Generic products portfolio constitute 69.44% in Fiscal 2019 and was 68.48% in Fiscal 2021 of our total product portfolio.
Company's Domestic Trade Generics and OTC Brands SBV consists of (i) Trade generic products; and (ii) OTC brands. Domestic Trade Generics and OTC Brands SBV accounted for 10.22% of our total revenue from operations in fiscal 2021. Company's Domestic Trade Generics and OTC Brands SBV has grown at a CAGR of 26.86% from Rs. 27.17 Crore in Fiscal 2019 to Rs. 43.72 Crore in Fiscal 2021.
Exports SBV is engaged in identifying high growth markets and opportunities in semi-regulated international markets as well as selected regulated markets, for developing and registering product applications to obtain marketing authorizations for generic medicines and health supplements and subsequently, sell such products to pharmaceutical companies and pharmacies in the respective markets. In Fiscal 2021, Exports SBV accounted for 4.45% of our total revenue from operations. Revenues from Export SBV increased at a CAGR of 2.09% from Rs. 182.25 million in Fiscal 2019 to Rs. 189.95 million in Fiscal 2021.
Company owns and operate four manufacturing facilities located at Dehradun in Uttarakhand. As of March 31, 2021, its manufacturing facilities had an aggregate installed operating capacity of 7,063.83 million tablets / capsules, 54.46 million pouch / sachet and 61.08 million liquid bottles. In addition, it has recently received a license to manufacture certain APIs at our Dehradun Plant - I assisting company with backward integration
In Fiscal 2020, Company's market share was approximately 1.5 in terms of revenue in the domestic formulations CDMO industry (Source: CRISIL Report).
Revenue generated from sales to our top 10 customers represented 57.01%, 57.14% and 57.87% of our revenue from operations in Fiscals 2019, 2020 and 2021 respectively. The number of domestic CDMO customers that company has catered to have increased from 97 in Fiscal 2019 to 204 in Fiscal 2021. In Fiscal 2020, we provided CDMO services to seven of the top 10 Indian formulations pharmaceutical companies (Source: CRISIL Report).
The Company has a sustain growth performance in terms of revenues and profitability.
The global formulations outsourcing market is expected to reach US$ 28 billion to US$ 32 billion by 2025 owing to robust growth in the outsourcing segment aided by many large pharmaceutical players outsourcing their research and manufacturing to specialized contract manufacturing players. In particular, the domestic formulations.
The Company intends to utilize our R&D efforts to target select products which are currently under patent protection. Patents in relation to approximately 150 key products are likely to expire by Fiscal 2026 and are expected to offer a significant growth opportunity to CDMO in India (Source: CRISIL Report).
The Company's distribution channel, which involves directly working with over 703 stockists and distributors, as of March 31, 2021, which has grown from over 618 stockists and distributors, as of March 31, 2019. Growth in stockists and distributors has assisted company to penetrate into the relatively smaller towns and villages in the semi-urban and rural parts of India.
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