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  4. Windlas Biotech IPO makes a weak stock market debut; list at 4.5% discount on exchanges

Windlas Biotech IPO makes a weak stock market debut; list at 4.5% discount on exchanges

Windlas Biotech IPO makes a weak stock market debut; list at 4.5% discount on exchanges
  • Shares of Windlas Biotech listed at ₹439 while the price band was fixed at ₹448-460 per share.
  • The IPO was subscribed 22.56 times on the last day of the bidding.
  • The market capitalisation of the company stood at ₹956.77 crore.
Shares of Windlas Biotech made a weak listing on the National Stock Exchange (NSE) and BSE as the stock listed at 4.5% discount over the issue price band of ₹448-460 apiece.

Post listing, the market capitalisation of the company stood at ₹956.77 crore, according to BSE data.

The shares of Windlas Biotech were trading at ₹436, lower by 5.2% at 10.07 a.m., on August 16. However, the grey market had indicated an 18-20% premium for the stock a few days prior to the listing.

The IPO ⁠— open between August 4 and August 6 ⁠— saw decent demand from investors. It was subscribed 22.56 times on the last day of the bidding.

The Uttarakhand-based company is a pharmaceutical formulations contract development and manufacturing organisation (CDMO). It provides pharmaceutical development services and large-scale manufacturing services.

The offer comprises ₹165 crore of fresh issue and offer for sale upto 51.42 lakh shares.

The company will utilise the proceeds from the IPO towards purchase of equipments required for capacity expansion of existing facility at Dehradun Plant IV, addition of injectables dosage capability at its existing facility at Dehradun Plant II (₹50 crore), working capital requirements (₹47.5 crore), repayment of debt of ₹20 crore and for general corporate purposes.

“Windlas is one of the leaders in the domestic pharmaceutical formulations contract development and manufacturing organisation (CDMO) industry. We believe the company is well placed to grab the opportunity arising from the industry given its strong product portfolio, relationship with its customers, research and development capabilities and efficient & quality compliant manufacturing facilities...We have a positive view on the company from the long term perspective,” said analysts at Religare Broking firm.

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