With as many as ten public issues already offered in December, the last month of 2021 is quite a hectic period for the IPO industry. Today, on the 16th of December 2021, Supriya Lifescience has come up with its Rs. 700 Cr worth of offering. This three-day offer comprises Rs. 200 Cr worth issue of fresh shares and Rs. 500 Cr worth shares shall be sold by the promoter Satish W Wagh. Funds raised from this IPO will be utilised for Capex, debt repayment, and other general-purpose corporate requirements.
About the Company
- Supriya Lifescience is one of the leading producers of Active pharmaceutical ingredients. As of 2021, the company has around 38 APIs that are focused on various therapeutic segments.
- From India, the company has been the biggest exporter of Ketamine Hydrochloride and Chlorpheniramine Maleate in 2017. It is also one of the largest producers of Salbutamol Sulphate locally.
- In 2016, the company’s products were sold to 86 countries. Its API business was carried out across all major continents.
- Supriya Lifesciences has a modern manufacturing facility in Maharashtra, with a reactor capacity of 547 kiloliters per day. The company has also secured several approvals from various regulatory bodies.
Supriya Lifescience IPO Details
The shares offered by Supriya Lifescience have a face value set at Rs. 2 per unit and the range of price within which the stock is issued is set between Rs. 265 and Rs. 274. Each lot of the IPO will hold 54 stocks. The type of initial public offering by Supriya Lifescience is book-built.
Supriya Lifescience IPO subscription is live now. The limit for qualified institutional buyers, retail investors, and high net worth individuals have been set at 75%, 10%, and 15% respectively. As of 11:30 AM on Day 1, retail investors have subscribed 4.61 times whereas HNIs have subscribed 0.38 times taking the total subscription to 0.94 times.
Important Dates – Supriya Lifescience IPO
You must note down the below-mentioned dates which are relevant for the Supriya Lifescience IPO.
|Issue Opening Date||16th December 21|
|Issue Closing Date||20th December 21|
|Allotment Basis Date||23rd December 21|
|Refund Initiation Date||24th December 21|
|Date of Credit of Stocks||27th December 21|
|Listing Date||28th December 21|
A Glance at the Financials
The previous three accounting years’ financial health of the company is given in the table below.
|Fiscal Year||Total Assets||Revenue||Profit / (Loss)|
|2020-2021||Rs. 4458.2 mn||Rs. 3962.2 mn||Rs. 1238.3 mn|
|2019-2020||Rs. 3364.0 mn||Rs. 3227.1 mn||Rs. 733.8 mn|
|2018-2019||Rs. 2530.5 mn||Rs. 2858.6 mn||Rs. 394.2 mn|
There has been consistent growth on a YoY basis in all major three heads as per the financial statements of Supriya Lifescience Ltd. In the latest quarter of the company as well, the financials reported are strong numbers. The revenue so far has been Rs. 2300 million and profitability was marked at Rs. 660 million.
Further Key Takeaways
- The company is exposed to various risks, such as unfavourable foreign exchange movements and its product mix.
- At the higher price band of around Rs 274, the company is asking for a price-to-earnings (P/E) multiple of 17.8 times, which is significantly lower than the peer average at 31.4 times.
- The company’s top 10 customers account for a significant portion of its revenue. However, any shift in customer preference could impact the company’s bottom line.
- Considering the company’s FY21 adjusted EPS of Rs. 15.4, which is on a post-issue basis, the stock is going to list at a P/E of 17.8 times, which is a P/E of over 20 times of its peers.
Where will the share of Supriya Lifescience be listed?
The shares of Supriya Lifescience will be listed on the National Stock Exchange as well as the Bombay Stock Exchange.
What is the grey market premium of Supriya Lifescience shares?
As on the first day of the subscription, the grey market premium is Rs. 270 which is about 98% over the issue price.
Who is going to lead Supriya Lifescience IPO?
The IPO of Supriya Lifescience will be led by ICICI Securities and Axis Capital Ltd.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.