Whalesbook
Sudeep Pharma, a manufacturer of pharmaceutical and food ingredients, has filed its Red Herring Prospectus (RHP) for an IPO launching on November 21. The company aims to raise Rs 95 crore through fresh shares and an Offer for Sale (OFS). The IPO will be open for subscription until November 25, with shares expected to list on November 28.
Sudeep Pharma, a technology-led manufacturer of excipients and specialty ingredients, has announced its Initial Public Offering (IPO) schedule. The company filed its Red Herring Prospectus (RHP) on November 17, with the IPO set to open for public subscription on November 21.
The price band for the IPO will be revealed on November 18. The anchor book, which allows anchor investors to subscribe, will open on November 20. The public offering will remain open until November 25.
Share allotment is scheduled for November 26, and Sudeep Pharma shares are expected to commence trading on the BSE and NSE effective November 28.
The company, based in Gujarat, plans to raise Rs 95 crore through the issuance of fresh shares. Additionally, promoters will divest 1.34 crore equity shares via an Offer for Sale (OFS). The OFS portion has been increased from the initially planned 1 crore shares.
Proceeds from the fresh issue, totaling Rs 78.8 crore, will be utilized for the procurement of machinery for its production line at the Nandesari facility. The remaining funds will be allocated for general corporate purposes.
Promoters, the Bhayani family, hold a significant stake of 89.37% in the company, with public shareholders, including Nuvama Crossover Opportunities Fund (holding 8.24%), owning the remaining shares.
Financially, Sudeep Pharma reported a profit of Rs 31.3 crore on a revenue of Rs 124.9 crore for the quarter ended June 2025. For the fiscal year ended March 2025, the company posted a profit of Rs 138.7 crore, marking a 4.1% increase from the previous fiscal year's Rs 133.2 crore. Revenue for the same period grew by 9.3% to Rs 502 crore, up from Rs 459.3 crore.
ICICI Securities and IIFL Capital Services are serving as the merchant bankers for the Sudeep Pharma IPO.
Impact
This IPO launch introduces a new investment opportunity in the specialty ingredients sector for Indian investors. A successful fundraising and listing could bolster investor confidence in Sudeep Pharma and potentially attract further capital into niche manufacturing companies. The planned utilization of funds for capacity expansion signals a positive outlook for the company's future growth.
Rating: 7/10
Definitions
IPO (Initial Public Offering): The process by which a private company first sells its shares to the public, becoming a publicly traded entity.
Red Herring Prospectus (RHP): A preliminary document filed with the Registrar of Companies containing details about a company's offering, which is not yet final.
Registrar of Companies: A government office responsible for registering companies and maintaining their records.
Price Band: The range of prices within which an IPO's shares will be offered to the public. The final price is determined within this band.
Anchor Book: A pre-IPO subscription period for anchor investors, typically large institutional investors.
Offer for Sale (OFS): A process where existing shareholders sell their shares to new investors; the company does not issue new shares or receive funds directly.
SEBI (Securities and Exchange Board of India): The primary regulatory body for the securities market in India.
Merchant Bankers: Financial intermediaries that help companies raise capital through public offerings and other financial services.
