Windlas Biotech Limited completed day 2 of its initial public offering (IPO) on Thursday. The IPO which is set to close on August 6, saw an overall subscription to its IPO of 7.06 times. The company received bids for 4.33 crore equity shares against the IPO size of 61.36 lakh shares on the second day of bidding. The size of the offer which was at 87.29 lakh shares was taken down to the aforementioned 61.26 lakh shares as a result of the anchor investment that the company managed to raise. The anchor investments stood at Rs 120.46 crore, which was raised a day before the IPO opened.
Amidst all the investors, the category that had the highest subscription was the retail investor segment. This segment was subscribed to the Windlas Biotech IPO a total of 13.53 times. The qualified institutional buyers (QIBs) were subscribed to the public issue a total of 0.04 times and the non-institutional investors subscribed 1.12 times of what they were allotted. The QIB segment, while having the smallest subscription compared to the other investor groups, had the largest reservation of them all at 50 per cent. The retail category on the other hand had a 35 per cent reservation allotted to it. The NIIs saw a 15 per cent allocation set aside for them in the issue.
The company is looking at a potential listing date of August 17, though that is not confirmed yet. However, The basis of allotment is likely to be on August 11.
The grey market premium for the issue on August 6 stood at Rs 130. This indicated that the shares were trading at a premium of Rs 578 to Rs 590 per equity share on the unlisted market. This was the same trend that occurred on August 5 as well.
Speaking on the growth of the global formulations market in context to Windlas Biotech’s place in it, Ajit Mishra the VP of Research from Religare Broking said, “The global formulations outsourcing market is expected to reach USD 28-32bn by 2025 owing to the growing demand for generics and biologics, rise in the number of drug approvals, end-to-end service & technical specialties of contract manufacturers and increase in off-patent products. In the past five years, the Indian formulations CDMO market has grown at a higher rate of 13% compared to the growth rate of 8.6% of the domestic formulations market. Going forward, domestic formulations CDMO is projected to grow at a CAGR of 14% by FY25 driven by strong demand from outsourcing by big pharma companies both Indian as well as MNC and rising demand for generic products in the chronic therapeutic category.”
Exxaro Tiles IPO
The Tiles manufacturer, Exxaro Tiles, closed its second day of subscriptions on Thursday as well. The company saw a total subscription of 10.40 times on August 5. The issue was subscribed 21.29 times by the retail investor segment which was by far the largest portion. The QIBs and the NIIS had subscribed to the issue a total of 1.66 times and 0.97 times respectively. Employees had also subscribed to the issue for 1.56 times their allotment.
The reserved portion for the investors stood at 25 per cent for the QIBs, while the NIIs and the retail investor segment had an investor portion of 35 per cent and 40 per cent respectively. The basis of allotment is likely to take place on August 11 and the listing is most probably on August 17, however, that is yet to be confirmed.
The GMP for the Exxaro Tiles IPO stood at Rs 20 as per information on IPO watch on August 6. This indicated that the shares continued to trade as they did on the previous day. The shares were trading at a premium of Rs 138 to Rs 140 on the grey market.
Giving an outlook on the way forward for the Indian ceramic tiles industry, Mishra said in a Religare Broking note, “The industry growth in FY20 remained subdued due to Covid-19-induced lockdown. However, the sector is expected to grow at a CAGR of 12-14% largely driven by a pickup in construction activity, government schemes for housing & infrastructure, shift from traditional to versatile products and increasing global demand for exports. This will benefit organized players to gain revenue as well as market share.”
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