The primary market is set to welcome another significant player as Sudeep Pharma, a leading manufacturer of speciality chemicals and pharmaceutical ingredients, launches its initial public offering this Friday. The IPO comes with strong investor interest already visible in the grey market, indicating positive sentiment toward the company's prospects.
IPO Dates and Key Details
The Sudeep Pharma IPO will open for subscription on Friday, November 21, and remain available for investment until Thursday, November 25. This book build issue combines a fresh issue of 16 lakh shares with an offer for sale of nearly 1.35 crore shares, creating a substantial market offering for interested investors.
The company has set the price band at ₹563 to ₹593 per share, making it accessible to a wide range of investors. With the upper price band fixed at ₹593, retail investors can participate with a minimum investment of ₹14,825 for one lot of 25 shares. The maximum investment for retail investors is capped at ₹1,92,725 for 13 lots.
Strong Grey Market Performance
Market sentiment appears highly positive for Sudeep Pharma's public offering, with the grey market premium standing at ₹130 on November 20. This translates to an estimated listing price of ₹723 per share, representing a healthy premium of nearly 22% over the upper price band. Such strong grey market performance often indicates robust investor demand and positive listing day expectations.
The allocation structure ensures broad participation across investor categories. Qualified institutional buyers have been reserved 50% of the net issue, while retail investors get 35% and non-institutional investors receive the remaining 15%.
Financial Performance and Business Overview
Sudeep Pharma has demonstrated impressive financial growth over recent years, making it an attractive investment proposition. The company's profit surged from ₹62.32 crore in FY23 to ₹133.19 crore in FY24, reaching ₹138.69 crore in FY25. For the first quarter of FY26, the company has already recorded a profit of ₹30.81 crore.
Revenue growth has been equally impressive, with operations revenue climbing from ₹428.74 crore in FY23 to ₹459.28 crore in FY24 and ₹502 crore in FY25. The three-month period ending June 30, 2025, saw revenue of ₹124.92 crore, indicating sustained business momentum.
Sudeep Pharma specializes in manufacturing excipients and speciality ingredients for pharmaceutical, food, and nutrition industries. The company has established a significant global footprint with presence in key markets including the United States, South America, Europe, Middle East, Africa, and Asia-Pacific regions.
The net proceeds from the fresh issue, amounting to ₹95 crore, will be utilized for capital expenditure toward procurement of machinery for its production line at Nandesari Facility I. Additional funds will be allocated for general corporate purposes to support ongoing operations and growth initiatives.
ICICI Securities and IIFL Capital Services Limited are serving as the book-running lead managers for the issue, while MUFG Intime India Private Limited acts as the registrar. Share allotment is expected to be finalized on Wednesday, November 26, with successful bidders receiving shares on November 27. The company is scheduled to list on both BSE and NSE on Friday, November 28.
This IPO represents a significant milestone for Sudeep Pharma as it seeks to strengthen its manufacturing capabilities and capitalize on growing demand in the specialty chemicals and pharmaceutical ingredients sector. With strong financials and positive market sentiment, the offering is poised to attract substantial investor interest across categories.
