Supriya Lifesciences IPO opens for bidding on December 16, Thursday, in what would be the 64th initial public issue of 2021. With this issue, companies would have raised over 1.3 lakh crore via IPOs—the highest ever in the history of the Indian capital market.
Supriya Lifesciences is looking to raise over Rs 700 crore via the primary market, with a fresh issue of Rs 200 crore and an offer for sale of Rs 200 crore.
Key things to know about Supriya Lifescience IPO
Key dates: The issue opens on December 16, closes on December 20. The allotment is expected to be finalised on December 23, ASBA funds should get unblocked by December 24. Trading in Supriya Lifescience is expected to commence by December 28.
Offer details: The issue comprises a fresh issue and an offer for sale by the promoter. The fresh issue is worth Rs 200 crore and promoters are looking to offload over Rs 500 crore.
Issue price: Rs 265-274
Issue size: Rs 700 crore
Lot size: Over 26 crore shares with a face value of Rs 2. Investors can bid for 54 shares and in multiples thereof
Post-issue implied market cap: Rs 2,200 crore at the upper end of the price band
Shareholding pattern: Promoters own 99.26 percent of the shares before the issue, which will decrease to 67.59 post-issuing of shares. The promoter group owns 0.72 percent of the shares and will be left with 0.65 percent after listing. The company is promoted by Satish Waman Wagh.
Issue break up: 75 percent of the issue is reserved for qualified institutional buyers and 15 percent for non-institutional buyers. Retail investors can bid for 10 percent of the issue.
About the company: Supriya Lifesciences was incorporated in March 2008 and is one of the key manufactures and suppliers of active pharma ingredients or APIs, in the country. API is a substance used in the finished pharma product to have a direct effect in the diagnosis, cure, mitigation, treatment, and prevention of a disease, as defined by the World Health Organisation. It can also have a direct effect in restoring, correcting, or modifying the impact.
The company majorly focuses on the research and development of APIs. As of October 2021, it had 38 APIs focused on diverse segments like an antihistamine, anaesthetic, analgesic, anti-asthmatic, and anti-allergic. Its manufacturing facility is located in Maharashtra, divided into 4 blocks. The fourth block came into operation in May 2021.
Its business is organised into domestic and export sales. As of October 2021, its products were exported to 86 countries. It is the largest exporter of Chlorpheniramine Maleate (an antihistamine) and Ketamine Hydrochloride (anaesthetic) from India.
Export sales make up an average of 70 percent of the company’s revenue. In six months period ended September 2021, export sales contributed 73.5 percent to the total revenue and domestic sales made up 26.4 percent of the revenue.
Its key customers include Mankind Pharma, Acme Generics, and Akums Drugs and Pharma.
Financials: Supriya Lifesciences reported a net profit of over Rs 123.38 crore in FY20-21, higher as compared to Rs 73.37 crore in the previous fiscal. Its revenue also jumped over Rs 396.2 crore in the period under review, as compared to Rs 327.21 crore in the previous fiscal.
For the quarter ended September 2021, it reported a net profit of Rs 65.96 crore and a revenue of Rs 230.06 crore.
Objective of issue: The company aims to invest Rs 92 crore into funding the capital expenditure requirements of the company. Over Rs 60 crore would be used for re-/pre-payment of certain borrowings. And the rest would go to the general corporate purposes.
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Grey market premium (GMP): As per data from IPO Watch, the shares of Supriya Lifesciences are commanding a premium of Rs 250 in the grey market.