The Indian pharmaceutical sector is set to witness a significant market entry as Sudeep Pharma launches its initial public offering this week. The company, which specializes in manufacturing excipients and speciality ingredients, aims to raise substantial capital through this public offering.
IPO Dates and Key Details
The Sudeep Pharma IPO will open for public subscription on Friday, November 21, and conclude on Tuesday, November 25. This ₹895 crore book build issue comprises a fresh issue of 16 lakh shares to raise ₹95 crore and an offer for sale of nearly 1.35 crore shares amounting to ₹800 crore.
Investors can participate in the offering within the price band of ₹563 to ₹593 per equity share. The share allotment process is scheduled for Wednesday, November 26, with successful bidders receiving their shares on Thursday, November 27. Market enthusiasts can expect the company's shares to debut on both the BSE and NSE on Friday, November 28.
Financial Performance and Business Operations
Sudeep Pharma has demonstrated impressive financial growth in recent years. 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 reported a profit of ₹30.81 crore.
Revenue figures show consistent growth with operations generating ₹428.74 crore in FY23, increasing to ₹459.28 crore in FY24 and further climbing to ₹502 crore in FY25. The three-month period ending June 30, 2025, saw revenue of ₹124.92 crore.
The company plans to utilize the net proceeds from the fresh issue for capital expenditure, specifically for procuring machinery for its production line at the Nandesari Facility I.
Promoter Structure and Market Position
The offer for sale involves several prominent shareholders. Sujit Jaysukh Bhayani is divesting up to 35,67,670 shares, while Sujeet Jaysukh Bhayani HUF is selling up to 84,18,856 shares. Additional sellers include Shanil Sujit Bhayani offering up to 7,50,000 shares and Avani Sujit Bhayani divesting up to 7,54,200 shares.
Sudeep Pharma has six promoters: Sujit Jaysukh Bhayani, Shanil Sujit Bhayani, Avani Sujit Bhayani, Sujeet Jaysukh Bhayani HUF, Riva Resources Private Limited, and Bhayani Family Trust. Collectively, these promoters hold 9,95,03,523 shares representing 89.37% of the company's equity share capital.
The company's management team comprises seven directors, including three whole-time directors and four independent directors. Sujit Jaysukh Bhayani, aged 58, serves as the managing director and chairman.
Industry Outlook and Risk Factors
Sudeep Pharma operates in the pharmaceutical excipients and speciality ingredients sector, serving pharmaceutical, food, and nutrition industries. The company maintains a global presence across key markets including the United States, South America, Europe, the Middle East, Africa, and Asia-Pacific.
Market projections indicate substantial growth opportunities. The food ingredients market is expected to grow at a CAGR of 6.5% between 2024 and 2029, reaching 580 billion USD. Similarly, the speciality food ingredients market may achieve a CAGR of 6.8%, with demand reaching 118 billion USD by 2029.
However, investors should note several risk factors. The company generates significant revenue from a limited number of customers, making it vulnerable to demand fluctuations from these key clients. Regulatory compliance remains crucial as manufacturing facilities undergo periodic inspections by authorities. The highly competitive pharmaceutical industry also presents challenges that could impact market share and profitability.
Interestingly, according to the Red Herring Prospectus, there are no directly comparable peer group companies listed in India operating in the same business segment as Sudeep Pharma, positioning the company uniquely in the Indian market landscape.
