IPO Watch: Sudeep Pharma Limited has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).
Sudeep Pharma, since it was established in 1989, has broadened its operations from manufacturing excipients to offering a diverse range of over 100 products within the pharmaceutical, food, and nutrition sectors, as of December 31, 2024. The company’s business is organised into two main segments: Pharmaceutical, food and nutrition, and Specialty ingredients.
The company has three manufacturing facilities located in Vadodara, Gujarat, which together boast an annual production capacity of 65,579 MT. It employs a workforce of 37 individuals for various processes including encapsulation, spray drying, granulation, trituration, liposomal preparations, and blending.
As of December 31, 2024, the company has catered to more than 1,100 customers and has established long-term partnerships with notable clients such as Pfizer Inc, Intas Pharmaceuticals Limited, Mankind Pharma Limited, Merck Group, Alembic Pharmaceutical Limited, Aurobindo Pharma Limited, Cadila Pharmaceutical Limited, IMCD Asia Pte. Ltd., Micro Labs Limited, and Danone S.A.
For the nine-month period concluding on December 31, 2024, the revenue from operations and profit after tax were ₹344.45 crore and ₹94.54 crore, respectively.
IPO Details
The initial public offering (IPO), with a nominal value of Re 1 per share, includes a fresh issuance of ₹95 crore alongside an offer for sale of up to 1,00,76,492 equity shares from the Promoter Selling Shareholder.
The offer for sale comprises up to 35,67,670 equity shares from Sujit Jaysukh Bhayani, up to 5004622 equity shares from Sujeet Jaysukh Bhayani HUF, up to 7,50,000 equity shares from Shanil Sujit Bhayani, and up to 7,54,200 equity shares from Avani Sujit Bhayani.
After discussions with the book-running lead managers, the company may opt for an issue of specified securities totaling ₹19 crore as a pre-IPO placement, which shall not exceed 20% of the fresh issue size. If such a placement occurs, the size of the fresh issue will be reduced.
The offer will be conducted via a book-building process, where no more than 50% of the offer will be allocated proportionately to qualified institutional buyers, at least 15% will be reserved for non-institutional bidders, and a minimum of 35% will be set aside for retail individual bidders.
The funds generated from the fresh issuance, amounting to ₹75.81 crore, will be used for capital expenses to acquire machinery for its production line at the Nandesari Facility I, as well as for general corporate needs.
ICICI Securities Limited and IIFL Capital Services Limited serve as the book-running lead managers, while MUFG Intime India Private Limited is designated as the registrar of the offer. The equity shares will be listed on both the BSE and NSE.
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