The initial public offering (IPO) of Sudeep Pharma Ltd, which opened on Friday, November 21, continues to attract strong investor interest as it approaches its closing date on Tuesday, November 25. On the second day of bidding, the issue recorded an overall subscription of 5.09 times, reflecting robust participation across investor categories.
Strong Subscription Momentum
By 5:00 PM on Day 2, the IPO had received bids for 5,37,83,650 shares against the 1,05,64,926 shares available for subscription, according to BSE data.
- Retail Investors: 4.96 times subscribed
- Non-Institutional Investors (NII): 12 times subscribed
- Qualified Institutional Buyers (QIB): 13% subscription
On the opening day, the IPO had registered a more modest subscription of 1.42 times, but the momentum has picked up significantly since then.
IPO Price Band and Allotment Schedule
Sudeep Pharma has set the IPO price band at ₹563–₹593 per share. The company has allocated:
- Up to 50% for QIBs
- At least 15% for NIIs
- A minimum of 35% for retail investors
The provisional allotment will be announced on Wednesday, November 26, followed by refunds and demat account credit on Thursday, November 27. The company’s shares are expected to debut on the BSE and NSE on Friday, November 28.
Grey Market Premium (GMP) Trends
The Sudeep Pharma IPO GMP stands at ₹86 today. Based on the upper price band of ₹593, the estimated listing price is around ₹679, indicating a potential 14.5% premium at listing.
Over the past eight sessions, the grey market premium has fluctuated between ₹0 and ₹130, with analysts noting a rising trend as the listing date approaches. While GMP is not an official indicator, it reflects investor sentiment ahead of the stock’s debut.
Company Overview
Headquartered in Gujarat, Sudeep Pharma is a leading manufacturer of food-grade iron phosphate, widely used in infant and clinical nutrition as well as food and beverage applications. The company operates six manufacturing facilities with a combined capacity of 50,000 MT, producing a range of mineral-based ingredients including calcium, magnesium, iron, zinc, potassium, and sodium.
Brokerage Opinions
Market analysts have issued mixed-to-positive views on the valuation and long-term potential of the IPO:
Anand Rathi
- Values the IPO at 48.3x FY25 P/E at the upper price band
- Notes the company’s expansion into advanced materials and battery-grade iron phosphate through its subsidiary SAMPL
- Rates the issue as “Subscribe – Long Term”
Swastika Investmart
- Highlights strong revenue growth and healthy EBITDA margins
- Points to a high FY25 RONW of 27.88%
- Considers the issue “aggressively priced” with limited short-term listing gains
- Recommends the IPO only for investors with a 2–5 year horizon
Geojit Investments
- Indicates the IPO is fairly valued at a P/E of 48x FY25 earnings
- Notes long-term growth prospects driven by R&D focus, strong global clientele, the acquisition of NSS, and entry into the EV battery minerals segment
- Issues a “Subscribe” call for medium- to long-term investors
IPO Structure and Use of Funds
The offering includes:
- A fresh issue of ₹95 crore
- An offer for sale (OFS) of 1.35 crore shares, totaling ₹800 crore from promoters
The company plans to spend ₹75.81 crore from the fresh issue on machinery installation at its Nandesari Facility 1 in Gujarat, with the remaining funds set aside for general corporate purposes.
ICICI Securities and IIFL Capital Services are the lead managers for the IPO, while MUFG Intime India Pvt. Ltd. is the registrar.
