Supriya Lifescience IPO: Status on Day 3 Subscription

21 December 2021
4 mins read
Supriya Lifescience IPO: Status on Day 3 Subscription

The Supriya Lifescience IPO (Initial Public Offering) was subscribed 71.47 times by the end of 20 December 2021. It received 1,03,82,75,874 bids against an allotment of 1,45,28,299 equity shares on the final day of subscription.

Supriya Lifescience is one of the country’s top manufacturers and suppliers of APIs (active pharmaceutical ingredients). The company produces 38 APIs in various therapeutic segments such as analgesic, antihistamine, anaesthetic, anti-asthmatic, anti-allergic and vitamin.

As of FY21, Supriya Lifescience remains the largest exporter of Ketamine Hydrochloride, Chlorpheniramine Maleate and Salbutamol Sulphate from India. It exports its products to 86 countries to 1296 customers in Asia, Europe, Latin America and North America.

To know about the performance of this company’s IPO, read along!

Supriya Lifescience IPO: Day 3 Performance

The following points illustrate how the initial share sale of Supriya Lifescience IPO performed across the investor categories.

  • The company reserved 79,24,527equity shares for QIBs (Qualified Institutional Buyers), whereas a total of 25,22,34,270 bids were received.
  • In the NIIs (Non-Institutional Investors) category, 39,62,263shares were reserved, whereas 63,87,80,418 bids were put in.
  • RIIs (Retail Individual Investors) category put 14,72,61,186bids against 26,41,509 shares reserved for them.

Take a look at the following table to see how many times investors subscribed for this IPO.

Investor Category Number of Times IPO was subscribed
QIBs 31.83 Times
NIIs 161.22 Times
RIIs 55.75 Times
Total 71.47 Times

Supriya Lifescience had reserved 75% of the total offer size for QIBs, 15% for NIIs and the remaining 10% for retail investors.

Supriya Lifescience IPO Anchor Investment

Prior to the opening of its IPO on 16 December, the company raised Rs. 315 crores from Anchor Investors (AIs). Under this portion, Supriya Lifescience sold 1,14,96,351 equity shares at an upper price band of Rs. 274 per equity share to 18 AIs.

The following is the list of some of the Anchor Investors for this IPO.

Name of the Anchor Investor % of Anchor Investor Portion Equity Shares Allotted Total Amount Allotted
Nippon Life India Trustee Ltd of Nippon India Small Cap Fund 17.46% 20,07,342 Rs. 55,00,11,708
Dovetail India Fund Class VI Shares 12.70% 14,59,782 Rs. 39,99,80,268
Cohesion MK Best Ideas Sub-Trust 11.11% 12,77,316 Rs. 34,99,84,584
Malabar India Fund Ltd 9.52% 10,94,796 Rs. 29,99,74,104
Kuber India Fund 9.21% 10,58,346 Rs. 28,99,86,804
Hornbill Orchid India Fund 6.35% 7,29,918 Rs. 19,99,97,532
Aditya Birla Sun Life Insurance Company Limited 6.35% 7,29,918 Rs. 19,99,97,532
Abakkus Growth Fund-I 6.03% 6,93,306 Rs. 18,99,65,844
Abakkus Growth Fund-II 3.18% 3,65,040 Rs. 10,00,20,960
Saint Capital Fund 3.81% 4,37,940 Rs. 11,99,95,560
BNP Paribas Arbitrage 1.59% 1,82,520 Rs. 5,00,10,480
Reliance General Insurance Company Ltd 1.59% 1,82,520 Rs. 5,00,10,480

Day 1 and Day 2 Performance of Supriya Lifescience IPO

The following is a table showing how the Supriya Lifescience IPO was subscribed on the first and second day of its opening.

Investor Segment QIBs NIIs RIIs Total
Day 1 NA 0.66 Times 11.84 Times 2.33 Times
Day 2 0.53 Times 2.90 Times 25.38 Times 5.69 Times

The company intended to raise Rs. 700 crores, with a fresh issuance of Rs. 200 crores and an OFS (offer for sale) of Rs. 500 crores by one promoter. The price band for this IPO was set at Rs. 265 to Rs. 274 per share with a face value of Rs. 2 each. The following were the objectives behind this public issue:

  • To utilize the proceeds to meet capital expenditure requirements of Rs. 92.3 crores
  • Repaying borrowings availed by the company to the tune of Rs. 60 crores
  • General corporate purposes

Parting Thoughts

Supriya Lifescience IPO is being offered at a P/E (price-to-earnings ratio) of 17.8 times its FY21 profits. Despite its rich valuation, the company provides the benefits of strong financial performance and stable cash flow.

Supriya Lifescience has delivered consistent growth since FY2019 and has a proven track record of operations for 12 years. Moreover, the company has a niche product portfolio in a range of therapeutic segments and advanced manufacturing and R&D capabilities. It also has a high degree of expertise in developing new products and scaling up production.

An extensive global presence, long-lasting relationship with clients, and proven track record are some additional strengths of this company. All of these factors place the company well to tap into opportunities in the pharmaceutical market.

Frequently Asked Questions

  1. What are the minimum and maximum lot sizes for Supriya Lifescience IPO?

Retail investors can apply for a minimum of 54 equity shares, amounting to Rs. 14,796 and in multiples thereafter. They can purchase a maximum of 13 lots (702 shares) amounting to Rs. 192,348.

  1. How were the company’s financials from FY19 to FY21?

From FY2019 to FY2021, Supriya Lifescience grew at a CAGR (compound annual growth rate) of 77%, while its EBITDA (earnings before interest, taxes, depreciation, and amortization) rose to 43.4% from 23.3%.

  1. When will the shares of this IPO be listed on stock exchanges?

The shares of Supriya Lifescience IPO will be listed on both the NSE and BSE on 28 December 2021.

  1. What is the promoter’s stake in Supriya Lifescience?

Satish Waman Wagh is the sole promoter of the company holding a 99.98% equity stake. After the IPO, his ownership in Supriya Lifescience will come down to 67.59%.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.