The initial public offering of Sudeep Pharma has generated tremendous response from investors as it approaches its final day of bidding. The pharmaceutical ingredients manufacturer's public issue, which opened on November 21, will conclude on November 25, giving investors one last opportunity to participate in this promising offering.
Overwhelming Investor Response
On the second day of bidding, the Sudeep Pharma IPO subscription status reached an impressive 5.09 times, indicating strong investor appetite across all categories. The non-institutional investor portion witnessed particularly robust demand, being subscribed 12 times, while the retail segment saw 4.96 times subscription. Qualified institutional buyers have shown initial interest with 13% of their portion booked.
The company has received bids for 5,37,83,650 shares against the 1,05,64,926 shares on offer as of 17:00 IST on the second bidding day. This represents a significant jump from the first day's subscription rate of 1.42 times, demonstrating accelerating investor interest.
IPO Structure and Price Details
Sudeep Pharma has established a price band of ₹563 to ₹593 per equity share for its public offering. The allocation structure reserves 50% for qualified institutional buyers, minimum 15% for non-institutional investors, and at least 35% for retail investors.
The IPO comprises a fresh issue of equity shares worth ₹95 crore and an offer for sale of approximately 1.35 crore equity shares aggregating ₹800 crore from promoters. The proceeds from new shares, totaling ₹75.81 crore, will fund capital expenses for machinery acquisition at its Nandesari Facility 1 in Gujarat, along with general corporate requirements.
Strong Grey Market Performance
The grey market premium for Sudeep Pharma IPO stands at ₹86 today. Considering the upper end of the IPO price band and current premium levels, the estimated listing price is indicated at ₹679 per share, representing a 14.50% premium over the IPO price of ₹593.
Market observers note that the IPO GMP has been rising today and is expected to debut strongly. Historical data from the past eight sessions shows the GMP ranging between ₹0.00 and ₹130, with current trends suggesting positive investor sentiment.
Allotment and Listing Timeline
The provisional allotment of shares for the Sudeep Pharma IPO is scheduled for Wednesday, November 26. Refunds will be processed on Thursday, November 27, with shares being credited to demat accounts of successful allottees on the same day.
Investors can expect the Sudeep Pharma stock to begin trading on both BSE and NSE on Friday, November 28, marking the company's formal entry into the public markets.
Brokerage Reviews and Recommendations
Leading brokerage firms have provided mixed but generally positive assessments of the IPO. Anand Rathi has assigned a "Subscribe-Long Term" rating, noting that at the maximum price range, the company's valuation is set at 48.3 times the FY25 P/E ratio, resulting in a post-issue market capitalization of 266,979 million.
Swastika Investmart indicated that the company demonstrates strong performance with rising revenues, high EBITDA margins, and an impressive FY25 RONW of 27.88%. However, they described the offering as "aggressively priced" with limited prospects for immediate listing gains, recommending aggressive investors consider applying only if prepared to hold for 2 to 5 years.
Geojit Investments recommended a "SUBSCRIBE" rating for medium to long-term investors, highlighting the company's robust operational results, acquisition of NSS that strengthens its European market presence, and planned entry into the rapidly expanding field of battery-grade minerals.
Company Fundamentals and Growth Prospects
Based in Gujarat, Sudeep Pharma ranks among the top manufacturers of food-grade iron phosphate used in infant nutrition, clinical nutrition, and food and beverage industries. The company operates six manufacturing plants with a combined capacity of 50,000 MT, specializing in minerals including calcium, iron, magnesium, zinc, potassium, and sodium.
The company has established a wholly owned subsidiary, SAMPL, to leverage its mineral chemistry expertise in advanced materials. This includes a new plant for PCAM production that will initially focus on battery-grade iron phosphate for LFP batteries in electric vehicles and energy storage solutions.
Sudeep Pharma also plans to enhance its footprint in regulated markets like the US and Europe by utilizing USFDA-approved facilities, increasing exports, and moving toward direct market access supported by local warehousing and sales teams.
ICICI Securities and IIFL Capital Services are serving as the merchant bankers for the Sudeep Pharma IPO, with MUFG Intime India Pvt. Ltd. acting as the registrar for this issuance.
