Sudeep Pharma IPO Last Day: Strong Subscription, Rising GMP, Should You Apply?

The Sudeep Pharma IPO opened on 21 November and will close today, 25 November.

The issue has received strong interest.

On the second day, the IPO was subscribed 5.09 times.

Price Band and Allocation

The IPO price band is between ₹563 and ₹593 per share.

Half of the shares are for institutional buyers.

Fifteen per cent is for non-institutional investors.

Thirty-five per cent is for retail investors.

Allotment and Listing Dates

Allotment will be announced on 26 November.

Refunds will be processed on 27 November.

Shares will be credited to demat accounts on the same day.

The stock is expected to list on 28 November.

About the Company

Sudeep Pharma is based in Gujarat.

The company makes food-grade iron phosphate used in infant and clinical nutrition.

It has six plants with a total capacity of 50,000 metric tonnes.

It produces minerals such as calcium, iron, magnesium, zinc, potassium, and sodium.

GMP Today

The grey market premium today is ₹86.

At the upper price band of ₹593, the estimated listing price is around ₹679.

This shows a possible gain of about 14.5 per cent.

Recent GMP trends also show an upward movement.

Subscription Status

By 11:03 am, the IPO received bids for 8.86 crore shares against 1.05 crore shares on offer.

The IPO is subscribed 8.39 times overall.

Retail investors subscribed 6.75 times.

Non-institutional investors subscribed 23.20 times.

Institutional buyers have placed 16 per cent of their bids.

On day one, the subscription was 1.42 times.

Analyst View

Analysts say the valuation at the upper price band is around 48 times FY25 earnings.

The company has expanded into advanced materials and is setting up a plant for battery-grade iron phosphate used in electric vehicle batteries.

Brokerages note strong revenue growth, high margins, and a return on net worth of 27.88 per cent.

Most analysts recommend subscribing for the long term.

IPO Details

The IPO includes a fresh issue of ₹95 crore.

There is also an offer for sale of 1.35 crore shares worth ₹800 crore.

Funds from the fresh issue will be used to buy machinery for the Nandesari facility and for general corporate purposes.

ICICI Securities and IIFL Capital Services are the merchant bankers.

MUFG Intime India Pvt Ltd is the registrar.