Windlas Biotech Ltd. declined on market debut even as retail and institutional investors led the demand for its shares in the initial public offering.
The stock listed at Rs 437.00 apiece on the National Stock Exchange, a 5% discount to its issue price of Rs 460. The stock hit an intraday low of Rs 405 and closed 11.49% lower at Rs 407.15.
The company's Rs 401.5-crore IPO was subscribed 22.56 times. It comprised a fresh issue of Rs 165 crore and an offer-for-sale worth Rs 236.5 crore by the promoter group and Tano India Private Equity Fund-II.
Windlas Biotech intends to utilise Rs 50 crore for capacity expansion of its existing facility at Dehradun (plant 4) and its injectables dosage capability at Dehradun (plant 2). It also aims to retire long-term debt worth Rs 20 crore and fund incremental working capital requirements of Rs 48 crore. The remaining amount will be used for general corporate purposes.
Prior to the IPO, Windlas Biotech had raised Rs 120.46 crore by allotting more than 26 lakh shares to 22 anchor investors at the upper end of the price band.
Windlas Biotech is a service provider for end-to-end formulation development, licensing and commercial manufacturing of generic/branded generics and has a strong presence for anti-diabetic, cardiovascular, neuropsychiatry, respiratory health and nutraceuticals.
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