Windlas Biotech Limted IPO

Windlas IPO

In 2001, Windlas Biotech Limited (after this referred to as ‘The company’) got incorporated in Delhi. However, the head office shifted to Uttarakhand in 2009 under shareholders approval. Subsequently, the company was converted to a private limited company in 2016 and returned to a public limited company in early 2021. The company’s IPO opens for subscription on August 4, 2021, and here is all you would like to know about the Windlas Biotech Limited IPO.

  • Amongst the top five players in the domestic pharmaceutical formulations contract development and manufacturing (CDMO) in terms of revenue
  • Experienced in both solid and liquid pharmaceutical dosage forms
  • The company sells its branded products in trade generics and OTC markets as well as generic export

The company operates three business segments:

  • CDMO services and products – focus on providing products and services across a diverse range of pharmaceutical and nutraceutical generic products. These services are for Indian and multinational pharma companies who market such products under their brand names. The segment contributes about 85% of revenue from operations
  • Domestic trade generics and OTC brands – consists of i) trade generic products and ii) OTC brands, which include nutraceutical and health supplement products. These products do not require a prescription and are marketed, distributed and promoted in India under the company’s brand name. This segment accounted for approximately 10% of revenues
  • Exports – segment is engaged in identifying high growth markets and opportunities in semi-regulated international markets and select regulated markets.

The company owns and operates four manufacturing facilities located at Dehradun in Uttarakhand. As of December 2020, the total installed capacity was 7,063.85 million tablets/capsules, 54.46 million pouch/sachet, and 61.08 million liquid bottles.

Key strength areas

  1. A leading CDMO in India with a focus on the chronic therapeutic category. Global focus on cost and operations optimization has lent immense importance to CDMO
  2. Robust research and development capabilities to innovate portfolio of complex generic products and products that have technical complexity
  3. The company has four manufacturing facilities in Dehradun, Uttarakhand. A segment that has significant entry barriers
  4. Windlas enjoys long term relationships with leading Indian pharmaceutical companies. These include Pfizer, Sanofi, Cadila Healthcare, Zydus, Emcure, Eris Lifesciences, Intas and Systopic Laboratories
  5. Solid and consistent financial performance track record

About the key promoters

The promoter and Whole Time Director, Mr Ashok Kumar Windlass, has over 20 years of experience in India’s manufacturing and pharmaceutical business. Another promoter and Managing Director, Mr Hitesh Windlass, manages strategic, corporate and technical operations. The third promoter and Jt. Managing Director, Mr Manoj Kumar Windlass, helps in the commercial operations of the company.

Financial Profile

Below is the condensed financial information.

Windlas IPO



Comparison with other industry peers

As per the prospectus filed by the company, there are no listed companies in India that engage in a business similar to that of our company. Therefore peer comparison is not possible.

Offer proceeds

Particulars Amount
Fresh issue of shares Rs 165.0 Cr
Offer for sale (51,42,067 equity shares) Rs 236.5 Cr
Gross issue size Rs 401.5 Cr

At the upper end of the offer price, the Price/Earnings ratio based on diluted EPS for Fiscal 2021 works out to be 52.9x.

Utilization of proceeds:

  • Purchase of equipment required for (i) capacity expansion of facility at Dehradun Plant IV, and (ii) addition of injectibles dosage capability at Plant II (total Rs 50 Cr for both purposes)
  • Funding incremental working capital requirements (Rs 47.5 Cr)
  • Repayment/prepayment of borrowings (Rs 20 Cr)
  • General corporate expenses

IPO Factsheet

Windlas IPO

In conclusion

The prevalence of chronic diseases in India has been on a constant increase. As a result, using multi-drug therapy by doctors, i.e., using two or more drugs on an individual, is growing. This phenomenon will lead to an increase in pharmaceutical consumption.

The company has experience in developing and manufacturing generic fixed-dose combinations. The focus is to launch new complex generic products in the chronic therapeutic category linked to ever-increasing lifestyle-related disorders.

Factors like population growth, increase in healthcare spending in Inda, improving life expectancy work in favour of growing demand for pharmaceutical products. The budget announcements on healthcare and wellbeing are also positive.

Having said that, we feel the offer is pricey, especially given the flattish revenues and thin profit after tax. Even the EBITDA margins are declining or flat over the past years. Surplus cash and constantly positive cash from operations is a positive indicator. We believe the prospects for the sector are bright. Investing in this company is a long term bet on growth in the industry and the belief that the company will ably participate. We recommend investing in this company from a long-term perspective.

The information provided in the red herring prospectus filed by the company with the Securities and Exchange Board of India ( is the basis for this note. However, I recommend that the reader validate the data before making any financial decision. Also, investment in an initial public offering (IPO) is subject to market risks. Therefore, it should be evaluated, keeping your risk profile and investment objective in mind. The author will not be responsible for any financial loss or otherwise resulting from any action taken based on the above.

About the author

The author is a senior finance professional with over fifteen years of work experience in corporate finance. He has an affinity for matters relating to personal finance and investment management. Through his writing, the author wants to share his knowledge and understanding of the subject.

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The author has used his knowledge, experience, and understanding of the subject and has exercised extreme care and caution to avoid any possible mistakes. However, the author does not take any responsibility for any error that exists.

Any views, opinions, and thoughts mentioned in the article belong solely to the author and not necessarily to the author’s employer (past or current), organization, committee, or other group or individual.

Under any circumstances, the author shall not be liable for any views or analysis expressed in this note. Further, the opinions expressed are not binding on any authority or Court. We advise readers to consult their financial advisor for assistance in their specific case.

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