Windlas Biotech (WBL) shares continued their decline and were trading lower for the third day in a row since listing. In intraday trading on Wednesday, shares fell 4% to Rs 385.50 on BSE, and are down 16% from its issue price of Rs 460 per share. The action of the pharmaceutical company debuted on Monday, August 16, 2021.
The company had raised Rs 402 crore in an Initial Public Offering (IPO) and offered to use the funds to purchase the equipment needed to expand the capacity of its existing facility at Plant IV from Dehradun. The company will use the net proceeds of the issue to fund additional working capital requirements and to prepay / repay the Company’s borrowings.
WBL is a leading contract development manufacturing (CDMO) organization focused on the chronic therapeutics category. With over two decades of experience manufacturing solid and liquid pharmaceutical dosage forms, WBL offers a full suite of CDMO services including product discovery, product development, licensing and commercial product manufacturing. generics.
Religare Broking analyst believes the company is well positioned to seize the opportunity arising from the industry given its strong product portfolio, customer relationships, R&D capabilities and manufacturing facilities. efficient and consistent with quality.
âFrom a financial standpoint, the performance of the company has been stable. We have a positive view of the company from a long-term perspective. The main risks are that the business is operating in a highly competitive market and requires significant working capital, “said the brokerage firm.
Having said that, WBL’s financial record has been very weak even as it tries to reorganize its business, which is a long drawn out process.
So much better options can be found among the listed players, says Sneha Poddar, Research, Brokerage and Distribution Analyst at Motilal Oswal Financial Services.