An Overview of the Company
- Supriya Lifescience, a Mumbai-based pharmaceutical company, has filed a draft red herring prospectus (DRHP) with capital markets regulator SEBI in order to launch an initial public offering (IPO). The firm intends to raise Rs. 1,200 crores from the primary sector.
- The IPO consists of a fresh issue of shares worth Rs. 200 crores and an offer of sale (OFS) of shares worth up to Rs. 1,000 crores owned by promoter Satish Waman Wagh, according to the prospectus. Every share has a face value of Rs. 2.
- The proceeds of the offering will be used to fund capital expenditures totaling Rs 85.38 crores. The company plans to expand existing manufacturing facilities at its main plant in Lote, Maharashtra, as well as continue to invest in existing manufacturing technologies to develop new production capabilities.
- The remaining funds will be used to repay and/or prepay some borrowings totaling Rs. 67 crores that the company has taken out, in whole or in part, as well as for general corporate purposes.
Financial Performance & Positions
- The company’s total income for the fiscal year ended March 31, 2020 was Rs. 322.71 crores, up from Rs. 285.86 crores the previous year. In FY20, net profit was Rs. 73.37 crores, up from Rs. 39.42 crores the previous year.
- The company recorded a net profit of Rs 76.19 crore and revenue of Rs 267.92 crore for the nine-month period ending December 31, 2020, owing to a sharp drop in the cost of raw materials, components, and stores consumed.
Other Key Takeaways
- ICICI Securities and Axis Capital have been named as book running lead managers (BRLMs) for the offering. The registrar is Link Intime India. The shares will be traded on the BSE and NSE stock exchanges. According to the DRHP, the firm has set aside 75% of the issue for interested institutional buyers (QIB), up to 15% for non-institutional investors, and up to 10% for retail bidders.
- Supriya Lifescience is a leading API manufacturer and supplier with a strong emphasis on R&D. The company had niche offerings of 39 APIs as of March 2021, with antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic, and anti-allergic products among them.
- Between FY2017 and FY2020, it was India’s largest exporter of chlorpheniramine maleate and ketamine hydrochloride. In terms of production, it is one of the country’s major exporters of salbutamol sulphate in fiscal 2020.
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