The IPO of pharmaceutical formulation company Windlas Biotech has been subscribed 13 times so far. Today was the last day to subscribe. By the last day it was subscribed 13.23. However, this IPO of 401.5 crores was fully subscribed on the very first day itself. Under this IPO, new shares worth 165 crore will be issued, while the shares of the remaining amount will be sold under the offer for sale.
Retail investors subscribed 19 times
Retail investors subscribed this IPO 19.42 times. Under the IPO, 5.99 crore bids were received for 30.88 lakh shares. QIBs subscribed to this IPO 7.40 times and Non-Institutional Investors (NIIs) subscribed 6.87 times. Windlas Biotech (WBL) is one of the five largest pharmaceutical formulation companies in the domestic market and has a market share of 1.5 per cent in terms of revenue. Is.
Shares are selling at a premium in the gray market
Windlas Biotech’s shares were selling at a premium of Rs 150 in the gray market this week. However, now the premium has come down. According to Manan Doshi, co-founder of UnlistedArena, which tracks the premium of shares in the gray market, there was a lot of enthusiasm about this stock in the gray market, so it sold at a premium.
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Better IPOs in the opinion of analysts
Analysts at ICICI Securities believe that the IPO of Windlas Biotech has been priced at an upper level at a P/E of 26.8 times in the financial year 2020-21. The asset turnover and return ratio of the company is high. But clarity on the growth of the company will have to wait a bit. Its asset turnover and return ratio should be consistent for profitability ratios.
Choice Broking has given this IPO a ‘Subscribe for long-term’ rating. It says that at the higher price band of Rs 460, the company is asking for a PE valuation of 26.6 times. Looking at its return ratio and profitability, it seems that this issue is fully priced. Choice Broking says that this IPO can be given a “Subscribe for Long Term” rating, given the increasing growth in the CDMO sector and the company’s ability to capitalize on the opportunities.