{"id":16610,"date":"2021-08-03T12:15:31","date_gmt":"2021-08-03T06:45:31","guid":{"rendered":"https:\/\/www.moneyworks4me.com\/investmentshastra\/?p=16610"},"modified":"2021-08-06T17:45:12","modified_gmt":"2021-08-06T12:15:12","slug":"windlas-biotech-ipo-review","status":"publish","type":"post","link":"https:\/\/www.moneyworks4me.com\/investmentshastra\/windlas-biotech-ipo-review\/","title":{"rendered":"Windlas Biotech IPO Review: Scale of operations raises doubts on profitability"},"content":{"rendered":"
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Windlas Biotech Limited IPO Details:<\/h2>\n

IPO Date:\u00a0<\/strong>August 4th<\/sup>\u00a0to August 6th<\/sup>, 2021<\/p>\n

\u00adTotal Shares for subscription:\u00a0<\/strong>~87.3 Lakhs<\/p>\n

IPO Size: ~ <\/strong>Rs. 402 Cr<\/p>\n

Lot Size:\u00a0<\/strong>30 shares<\/p>\n

Price Band:\u00a0<\/strong>Rs. 448-460\/ share<\/p>\n

Market Capitalization:\u00a0<\/strong>~1,003 Cr<\/p>\n

Recommendation:<\/strong>\u00a0Avoid <\/strong><\/span><\/p>\n<\/div>\n

About the Windlas Biotech Limited:<\/h2>\n

Incorporated in February 2001, Windlas Biotech Limited<\/strong><\/a> (\u201cWindlas\u201d) is amongst the top five players in the domestic pharmaceutical formulations contract development and manufacturing organization (\u201cCDMO\u201d) industry in India in terms of revenue.<\/p>\n

Windlas provides a comprehensive range of CDMO services ranging from product discovery, product development, licensing, and commercial manufacturing of generic products. This includes complex generics, in compliance with current Good Manufacturing Practices (\u201cGMP\u201d) with a focus on improved safety, efficacy, and cost.<\/p>\n

Windlas partners with many of their CDMO customers early in the drug development process, providing them the opportunity to continue to expand their relationship as molecules progress through the clinical phase and into commercial manufacturing.<\/p>\n

The company was incorporated as \u2018Windlas Biotech Limited\u2019 in February 2001 in New Delhi. Ashok Kumar Windlass, Hitesh Windlass, Manoj Kumar Windlass, and the Promoter Trust are the Promoters of the company. Currently, the Promoters cumulatively hold 70.20% of the pre-Offer, issued, subscribed, and paid-up Equity Share capital of the company.<\/p>\n

About the Windlas Biotech Limited Business:<\/h3>\n

Windlas has 3 distinct strategic business verticals (\u201cSBVs\u201d): (i) CDMO Services and Products; (ii) Domestic Trade Generics and over-the-counter (\u201cOTC\u201d) Brands; and (iii) Exports.<\/p>\n

\"vertical<\/a><\/p>\n

Company\u2019s Domestic Trade Generics and OTC Brands SBV consist of (i) trade generic products; and (ii) OTC brands. Windlas also sells its own branded products in the trade generics and OTC markets as well as exports generic products to several countries.<\/p>\n

Windlas has developed relationships with various leading Indian pharmaceutical companies<\/a><\/strong>, including Pfizer Ltd, Sanofi India Ltd, Cadila Healthcare Ltd\/ Zydus Healthcare Ltd, Emcure Pharmaceuticals Ltd, Eris Lifesciences Ltd, Intas Pharmaceuticals Ltd, and Systopic Laboratories Pvt Ltd. In Fiscal 2020, they provided CDMO services to 7 of the top 10 Indian formulations pharmaceutical companies.<\/p>\n

Windlas currently owns and operates 4 manufacturing facilities located at Dehradun in Uttarakhand. As of March 2021, their 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.<\/p>\n

Management of Windlas Biotech Limited:<\/h3>\n

Ashok Kumar Windlass is the Whole-time Director of the company. He has over 20 years of experience in the manufacturing and pharmaceutical business in India. He is one of the Promoters and founders of the company. He plays a significant role in the administration, legal and engineering functions of the company.<\/p>\n

Hitesh Windlass is the Promoter and Managing Director of the company. He has set up the company\u2019s Domestic Trade Generics, OTC Brands, and Exports SBVs and plays a significant role in driving the technical operations, quality, R&D, manufacturing strategy, and financial strategy of the company. He was previously associated as a process engineer with Intel Corporation, USA.<\/p>\n

Manoj Kumar Windlass is the Promoter and Joint Managing Director of the company. He has over 15 years of experience in product development, operations, procurement, and portfolio functions of the medicine business.<\/p>\n

Komal Gupta is the CFO of the company. She has experience in the field of finance. Prior to joining the company, she has worked at Perfect Circle India Ltd, Anand Automotive Systems Ltd, and DSM Sinochem Pharmaceuticals India Pvt Ltd.<\/p>\n

Shailesh Gokhale is the Chief Operating Officer of the company. He has experience in the field of the pharmaceutical Industry. Prior to joining the company, he has worked at Paras Pharmaceuticals Ltd, Cipla Ltd, Cadila Pharmaceuticals Ltd, Biocon Ltd, ACG Associated Capsules Pvt Ltd, Fresenius Kabi Oncology Ltd, and Pfizer Products India Pvt Ltd. He joined the company on January 15, 2020.<\/p>\n

\"live<\/a><\/p>\n

Financials Windlas Biotech Limited:<\/h3>\n

Windlas has just Rs. 400 Cr in sales volatile financial performance. It is yet to achieve scale to earn a consistent return on equity.<\/p>\n

\"financials<\/a><\/p>\n

Positives:<\/strong><\/p>\n