Sudeep Pharma IPO Sees Strong Investor Demand on Day 2
The initial public offering (IPO) of Sudeep Pharma continued to attract significant investor interest on the second day of bidding. The public issue, which opened for subscription on Friday, was fully subscribed on its very first day, setting a positive tone for the remainder of the share sale. The bidding process will conclude on November 25.
Financial Details and Anchor Investment
Ahead of the public offering, the company successfully secured a strong vote of confidence by raising ₹268.5 crore from anchor investors. The overall ₹895 crore IPO is priced in a band of ₹563 to ₹593 per share. The offer comprises two key components: a fresh issue of shares worth ₹95 crore and an offer for sale (OFS) of nearly 1.35 crore shares, amounting to ₹800 crore, by the company's promoters.
Utilization of Proceeds and Company Focus
The capital raised through the fresh issue will be strategically deployed to fuel the company's growth. A significant portion, ₹75.81 crore, has been earmarked for capital expenditure. This investment is primarily directed towards the procurement of advanced machinery for the production line at its Nandesari Facility 1 in Gujarat. The remaining funds will be utilized for general corporate purposes, providing the company with greater operational flexibility.
Sudeep Pharma has established itself as a technology-driven manufacturer specializing in excipients and specialty ingredients. It plays a critical role in supplying the pharmaceutical, food, and nutrition sectors, contributing directly to the global healthcare ecosystem with its essential products.
Grey Market Premium and Investor Outlook
The market sentiment for the Sudeep Pharma IPO remains highly optimistic, as reflected in the latest grey market premium (GMP). The current GMP is reported at ₹121 per share. With the upper end of the IPO price band set at ₹593, this translates to an estimated listing price of ₹714. This potential listing price suggests a robust expected gain of approximately 20.40% for investors on the day of listing, making it a closely watched debut.
