Windlas Biotech rallies 19% on concluding EU inspection with zero critical observation

New Delhi: Shares of Windlas Biotech rallied 19 per cent during early trade on Monday as the company's plant got a no critical observation in an inspection by European Union (EU).

The recently listed pharmaceuticals player said it has concluded European Union's good manufacturing practice inspection carried out by the National Institute of Pharmacy and Nutrition, Hungary, for its Plant-IV at Dehradun with zero critical observations.

In a regulatory filing, the pharmaceutical formulations contract development and manufacturing company said the inspection took place from April 11-13, 2022.

Following the development, shares of Windlas Biotech rallied 19 per cent to Rs 280 before trading at Rs 269.35 at 9.40 am. The scrip had settled at Rs 236.25 on Wednesday.

"Based on our preliminary discussion with the agency in the sum-up meeting, we estimate zero critical observations and deficiencies, including no observations related to Data Integrity issue," said Windlas Biotech Managing Director Hitesh Windlass.

Windlas Biotech had listed in August 2021 at Rs 439, a discount of 5 per cent to its issue price of Rs 460. The company had raised Rs 401.5 crore through its initial stake sale.

However, the company has remained under pressure since its debut on Dalal Street. The smallcap pharma counter had tumbled more than 50 per cent from its issue price.