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Below is quote on "Windlas Biotech and Krsnaa diagnostics IPO expected listing gain by Mr. Yash Gupta, Equity Research Associate, Angel Broking Ltd   

What to expect from both the pharmaceutical sector IPO listing and what’s the grey market premium signalling.

Windlas biotech and Krsnaa diagnostic have received good response from investors and the IPO got oversubscribed by 22.4 times and 64 times respectively.

Windlas biotech is engaged in the business of CDMO, domestic generic and export business. CDMO accounts for 85% of the top line in FY2021 and CDMO business is a high margin business along with having good potential to grow in India in near future. Windlas biotech IPO is priced at adjusted PE levels of 22.2 times, we expect windlass to get listed at PE levels of 25-27 times i.e ₹518-₹560, which is expected listing gains of 12%-20%.

Krsnaa diagnostic IPO priced at PE levels of 77.9x. Krishnaa has a weak balance sheet with negative net worth in FY2020. So we don’t expect Krishna to give very big listing gains. 

On grey market premium, as per the market news GMP has come down slightly for both the IPO in the last couple of days and currently trading at ₹65-₹75 for Windlas biotech and ₹320-₹330 for Krsnaa Diagnostics, so grey market signalling a good listing for both the IPO.

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