Leading pharmaceutical development services company, Windlas Biotech, has made a tepid market debut on the stock market after its initial public offering (IPO).

On the Bombay Stock Exchange (BSE), the stock got listed at Rs 439, down nearly 5 per cent from the issue price of Rs 460. It fell to over 8 per cent at 11:30 am. On the National Stock Exchange (NSE), the stock got listed at Rs 437 a discount of 5 per cent. The stock dipped further after the listing and was trading at Rs 422.90, down over 8 per cent from the issue price.

The shares of the company were in high demand during the 3-day IPO from August 4 to August 6. Windlas Biotech’s IPO was subscribed over 22 times.

The quota reserved for qualified institutional buyers (QIBs) was subscribed over 24 times while the portion set aside for non-institutional investors was subscribed over 15 times. Meanwhile, retail investors subscribed 24.27 times the portion reserved for them.

The firm’s Rs 401.5 crore IPO comprised a fresh issue of Rs 165 crore and an offer for sale worth Rs 236.5 crore. The price band of the IPO was Rs 448-Rs 460.

The company said it would use the proceeds from the public issue to purchase equipment required for capacity expansion of its facility at Dehradun Plant IV, besides funding working capital requirements, repayment of debts and general corporate purposes.

It may be noted that Windlas Biotech is one of the leading players in the domestic pharmaceutical formulations CDMO or contract development and manufacturing organisations industry in India, both in terms of revenue and market share.

Windlas Botech provides a wide range of CDMO services including licensing, product discovery, product development, commercial manufacturing of generic products including complex generics.

The company also sells its own branded products besides CDMO operations. The company has a strong focus on the chronic therapeutic category.