The initial public offering (IPO) for Sudeep Pharma, which launched on Friday, November 21, is scheduled to close on Tuesday, November 25. Sudeep Pharma IPO subscription status on the second bidding day was 5.09 times. The Sudeep Pharma IPO has been seeing an incredible response from investors. Those interested in investing have an additional day to consider the IPO. Sudeep Pharma IPO allotment is scheduled for tomorrow.
Sudeep Pharma IPO price band has been established between ₹563 and ₹593 per equity share. The company has set aside up to 50% of the shares in this public offering for qualified institutional buyers (QIB), a minimum of 15% for non-institutional investors (NII), and at least 35% for retail investors.
The provisional allotment of shares for the Sudeep Pharma IPO will be announced on Wednesday, November 26, with refunds scheduled to be processed on Thursday, November 27. Shares will be credited to the demat accounts of the allottees on the same day that refunds occur. The Sudeep Pharma stock is anticipated to start trading on the BSE and NSE on Friday, November 28.
Sudeep Pharma, located in Gujarat, is one of the top manufacturers of food-grade iron phosphate used in infant nutrition, clinical nutrition, and the food and beverage industries, thanks to its production capacity. The company operates six manufacturing plants that together have a total capacity of 50,000 MT, focusing on minerals such as calcium, iron, magnesium, zinc, potassium, and sodium.
Sudeep Pharma IPO GMP today
Sudeep Pharma IPO GMP today is ₹86. 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 ₹679 apiece, which is 14.50% higher than the IPO price of ₹593.
According to the trends in the grey market noted over the past eight sessions, the IPO GMP is on the rise today and is expected to debut strongly. Analysts suggest that the minimum GMP observed is ₹0.00, while the maximum GMP recorded is ₹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 5.09x on day 2. The retail portion was subscribed 4.96x, and NII portion has been booked 12 times, Qualified Institutional Buyers (QIBs) portion has received 13% bids.
The company has received bids for 5,37,83,650 shares against 1,05,64,926 shares on offer, at 17:00 IST, according to data on BSE.
On the first bidding day, Sudeep Pharma IPO subscription status was 1.42x.
Sudeep Pharma IPO Review
As per Anand Rathi, 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. Furthermore, they have established a wholly owned subsidiary, SAMPL, to utilize their mineral chemistry expertise in advanced materials, which 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.
“Additionally, the company intends to enhance its footprint in regulated markets like the US and Europe by leveraging USFDA-approved facilities, increasing exports, and moving towards direct market access supported by local warehousing and sales teams. Considering these elements, the IPO appears to be fully valued, and the brokerage has assigned a “Subscribe-Long Term” rating,” said the brokerage.
Swastika Investmart has indicated that the company demonstrates strong performance characterized by rising revenues, high EBITDA margins, and an impressive FY25 RONW of 27.88%. It serves as a crucial partner for vital pharmaceutical-grade ingredients, serving a reputable list of distinguished global clients.
“The offering is perceived as ‘aggressively priced’ with a P/E ratio ranging from 45 to 48x, which fully incorporates its current consistent profitability. This elevated valuation offers limited prospects for immediate listing gains or short-term growth. Aggressive investors are advised to consider applying only if they are prepared to hold for a period of 2 to 5 years,” stated the brokerage.
Geojit Investments noted that at its highest price of ₹593, SPL has a P/E ratio of 48x based on FY25 diluted earnings, which appears to be fairly valued. The company is poised for sustained long-term growth, supported by robust operational results, the acquisition of NSS that strengthens its foothold in the European market for infant nutrition and formulations, as well as its planned entry into the rapidly expanding field of battery-grade minerals.
“With a solid balance sheet, a commitment to R&D, and ongoing product innovation, SPL offers a compelling long-term narrative. Therefore, we recommend a SUBSCRIBE rating for investors looking at a medium- to long-term investment perspective,” the brokerage stated.
Sudeep Pharma IPO details
Sudeep Pharma IPO includes a new issuance of equity shares worth ₹95 crore and a selling offer of around 1.35 crore equity shares, aggregating ₹800 crore from the promoters.
The proceeds from the new shares, totaling ₹75.81 crore, will be used for capital expenses related to the acquisition of machinery for its production facility at Nandesari Facility 1 in Gujarat, along with general corporate needs.
ICICI Securities and IIFL Capital Services are serving as the merchant bankers for the Sudeep Pharma IPO, while MUFG Intime India Pvt. Ltd. acts as the registrar for this issuance.
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.
