The initial public offering (IPO) of Sudeep Pharma, which opened on Friday, November 21, is set to conclude on Tuesday, November 25. Sudeep Pharma IPO got fully subscribed on the first day of share sale on Friday. Sudeep Pharma IPO subscription status was 1.42 times on the first bidding day on November 21.
Sudeep Pharma IPO price band has been set in the range of ₹563-593 per equity share. Sudeep Pharma has allocated up to 50% of the shares in the public offering for qualified institutional buyers (QIB), at least 15% for non-institutional investors (NII), and a minimum of 35% for retail investors.
The provisional basis of share allotment for the Sudeep Pharma IPO will be determined on Wednesday, November 26, with refunds to be processed on Thursday, November 27. Shares will be credited to the demat accounts of allottees on the same day as the refunds. Sudeep Pharma share price is expected to debut on the BSE and NSE on Friday, November 28.
Sudeep Pharma, based in Gujarat, ranks among the leading producers of food-grade iron phosphate utilized in infant nutrition, clinical nutrition, and the food and beverage sectors due to its manufacturing capacity. The company runs six production facilities that collectively boast a total capacity of 50,000 MT, concentrating on minerals like calcium, iron, magnesium, zinc, potassium, and sodium.
Sudeep Pharma IPO GMP today
Sudeep Pharma IPO GMP today is ₹121. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Sudeep Pharma share price was indicated at ₹714 apiece, which is 20.40% higher than the IPO price of ₹593.
Based on the grey market trends observed from the last eight sessions, the IPO GMP is showing an upward trajectory today and is anticipated to have a robust listing. Experts indicate that the lowest GMP recorded is ₹0.00, while the highest GMP stands at ₹130.
Grey market premium indicates investors’ readiness to pay more than the issue price.
Sudeep Pharma IPO Subscription Status
Sudeep Pharma IPO subscription status was 1.42x on day 1. The retail portion was subscribed 1.50x, and NII portion has been booked 48%, Qualified Institutional Buyers (QIBs) portion has received 3.00x bids.
The company has received bids for 1,50,09,425 shares against 1,05,64,926 shares on offer, at 17:00 IST, according to data on BSE.
Sudeep Pharma IPO Review
Swastika Investmart reported that the company exhibits strong performance with increasing revenues, elevated EBITDA margins, and a noteworthy FY25 RONW of 27.88%. It functions as a key partner for essential pharmaceutical-grade ingredients, catering to a solid list of esteemed global clients.
“The issue is viewed as “aggressively priced” at a P/E ratio of 45–48x, which fully reflects its current steady profitability. This high valuation provides minimal opportunity for immediate listing gains or short-term increases. Aggressive investors are encouraged to apply only if they have a holding period of 2–5 years,” said the brokerage.
Geojit Investments indicated that at the maximum price point of ₹593, SPL is trading at a P/E ratio of 48x based on FY25 diluted earnings, which seems to be reasonably valued. The company is well-equipped for ongoing long-term expansion, bolstered by strong operational outcomes, the acquisition of NSS that enhances its presence in the European market for infant nutrition and formulations, and its intended entry into the rapidly growing sector of battery-grade minerals.
“Coupled with a strong balance sheet, dedicated R&D focus, and continued product innovation, SPL presents a compelling long-term story. We therefore assign a SUBSCRIBE rating for investors with a medium- to long-term investment horizon,” said the brokerage.
Sudeep Pharma IPO details
Sudeep Pharma IPO consists of a new issue of equity shares valued at ₹95 crore and a selling offer of approximately 1.35 crore equity shares, totaling ₹800 crore from the promoters.
The funds raised from the fresh issue, amounting to ₹75.81 crore, will be allocated for capital expenditures related to the purchase of machinery for its production facility located at Nandesari Facility 1 in Gujarat, as well as for general corporate purposes.
ICICI Securities and IIFL Capital Services are acting as the merchant bankers for the Sudeep Pharma IPO. MUFG Intime India Pvt. Ltd. serves as the registrar for this issue.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
