Windlas Biotech Limited, a manufacturer of pharmaceuticals formulations has proposed to open its initial public offering (IPO) on August 04, 2021, Wednesday.
The price band for the IPO has been kept at Rs 448 to Rs 460 per equity share. Bids can be availed for a minimum of 30 equity shares and further in multiples of 30 equity shares.
The IPO involves equity shares of the face value of Rs 5 each of Windlas Biotech Limited consisting of a fresh issue aggregating up to Rs 1,650 million along with an offer for a sale of up to 5,142,06 Equity shares.
The offer for sale includes 11,36,000 equity shares by Vimla Windlass (the individual selling shareholder) and up to 4,006,067 equity shares by Tano India Private Equity Fund II ( the ‘investor selling shareholder’ and collectively with Individual Selling Shareholder, the ‘selling shareholders’)
According to the company, not more than 50 per cent of the offer shall be enabled for allocation on a proportionate basis to Qualified Institutional Buyers. However, the company and the Selling shareholder in consultation with the BRLMs might allocate up to 60 per cent of the QIB portion to anchor investors on a discretionary basis while complying with the SEBI ICDR Regulation which states that one third shall be reserved for domestic Mutual Funds, on the ground of valid bids obtained from domestic mutual funds above the anchor investor allocation price according to the SEBI ICDR regulation.
Considering a case of under subscription or non-allocation in the anchor investor portion, the balance equity shares shall be included in the Net QIB Portion. Moreover, around 5 per cent of the net QIB portion shall be enabled for allocation on a proportionate basis to the mutual funds. While the remaining Net QIB Portion shall be available for allocation on a proportionate basis to all QIB bidders that include mutual funds, on the ground of valid bids being obtained at or above the offer price.
On the other hand, if the aggregate demand from the mutual fund is less than 5 per cent of the QIB portion, then the balance equity share shall be available for allocation in the mutual fund portion and further will be included in the remaining QIB portion for proportionate allocation to QIBs.
Furthermore, not less than 15 per cent of the offer shall be provided for the allocation on a proportionate basis to the non-institutional bidders as well as not less than 35 per cent of the offer shall be available for allocation to Retail individual bidders (RIBs) according to the SEBI ICDR regulations, on the grounds of valid bids obtained from them above the offer price.
Every potential bidders excluding the anchor investors will have to mandatorily use the Application Support by Blocked Account (ASBA) process by facilitating the details of their respective bank accounts along with UPI ID, where the corresponding bid amount will be blocked by the Self Certified Syndicate Banks (SCSBs) or the sponsor bank. The anchor investors are not allowed to participate in the offer through this ASBA process.
The BRLMs to the offer are namely SBI Capital Markets Limited, DAM Capital Advisors Limited, and IIFL Securities Limited.
The Equity Shares offered through the Red Herring Prospectus will be listed on BSE and NSE.
