Why Brokers Say Subscribe to Windlas Biotech IPO

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Why Brokers Say Subscribe to Windlas Biotech IPO

By Aditya Raghunath

Investing.com -- It’s the last day of Windlas Biotech’s Rs 401.53 crore IPO. It has been subscribed 7.06 times overall with the retail segment getting subscribed 13.53 times. Brokerages say this is a good stock to have.

The company operates in the contract development and manufacturing organisation (CDMO) space. It has an innovative portfolio of complex generic products, and its long-term relationships with Indian pharmaceutical companies combined with a steady financial track record hold it in good stead.

"Windlas Biotech is a leading CDMO, with a focus on the chronic therapeutic category. Further, its innovative portfolio of complex generic products, supported by robust R&D capabilities, efficient and quality-compliant manufacturing facilities with significant entry barriers, long-term relationships with Indian pharmaceutical companies and a consistent track record of financial performance provide for further growth visibility," said BP (LON: BP ) Equities.

The issue price for the share is Rs 448-Rs 460 and the grey market premium (GMP) for the stock was at Rs 130 a share as of today morning. This means the share is likely to list at Rs 590 levels on the upper end.

Ajit Mishra the VP of Research from Religare Broking said, “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.”

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