Supriya Life sciences are one of the key Indian manufacturers and suppliers of active pharmaceutical ingredients (“APIs”), with a focus on research and development. As of March 31, 2021, the company has niche product offerings of 39 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anesthetic, vitamin, anti-asthmatic and antiallergic. The company is the largest exporter of Chlorpheniramine Maleate and Ketamine Hydrochloride from India, contributing to 45-55% and 65-70%, respectively, of the API exports from India, between Fiscal 2017 and 2020. In Fiscal 2021, the firm’s products were exported to 78 countries to 1,060 customers including 286 distributors. The firm’s business operations are supported by a modern manufacturing facility located in Parshuram Lote, Maharashtra, which is approximately 250 km from Mumbai, Maharashtra. The manufacturing facility is spread across 23,806 sq. mts, having a reactor capacity of 332 KL/ day.
The life sciences company is all set to raise Rs 700 crores from the maiden public offering. The IPO consists of both fresh issues worth Rs200 crores and an offer for sale worth Rs500 crores. The company will not receive any proceeds from the offer for sale, where Mr. Satish Waman Wagh will offload 1.82 crore equity shares aggregating up to Rs 500 crore. However the net proceeds from the fresh issue will be utilized for, funding capital expenditure requirements of the company, Repayment, and/ or pre-payment, in full or part, of certain borrowings availed by the company and general corporate purposes.
The IPO will open for subscription from 16th Dec 2021 and will close on 20th Dec 2021, with a price band of Rs 265-274. Shares will be allotted on 23 Dec 2021. The allotment can be checked on the official website of BSE India and also on the official site of Link Intime India private limited, acting as a registrar of the IPO. In case the investors are not allotted shares, a refund will be initiated on 24th Dec 2021. Finally, the company will be listed on both NSE and BSE on 28th Dec 2021.
Up to 75% of the IPO size is reserved for qualified institutional investors and 10% for retail investors whereas 15% for the high net worth individuals. Retail investors can invest a minimum amount of Rs 14,796 to buy 1 lot accumulating 54 shares and a maximum of Rs 192,348 shares to buy 13 lots making it a total of 702 shares.
The pharmacy firm has competitive strengths like a significant scale with a leadership position across key & niche products, a backward integrated business model, Geographically diversified revenues with a global presence across 78 countries, and advanced manufacturing and research and development capabilities Along with competitive edges the financial numbers also speaks well about the company. In Fy2020, the firm earned a profit of Rs 3,227.13 million up by Rs 368.51 million from Rs 2,858.62 million earned in FY2019. In the first nine months of Fy2021, the firm earned an operating income of Rs 2,679.27 million. In the first none month of FY 2021, the firm earned revenue of Rs761.86million, which is more than profit in the entire year of FY2020.
String fundamental and financial report couple with high Grey market premium for the IPO, which is almost Rs 250 above the higher side of the price bands, makes the Supriya life sciences IPO a mouth-watering investment opportunity. However, investors must do their research before investing in the stock market. Investment in the stock markets are subject to market risk and investors must do their research and invest at their discretion.