Supriya Lifescience is Set to Raise Rs. 1200 Crores through IPO

By Angel One | Published on 2nd August 2021 | 52

Supriya Lifescience is Set to Raise Rs. 1200 Crores through IPO

Supriya Lifescience, a leading active pharmaceutical ingredients (APIs) manufacturer and supplier, filed DRHP with SEBI to fundraise Rs. 1,200 cores through IPO. The said initial public offer will comprise a new issue of shares worth Rs. 200 crores. It will also consist of an offer for sale (OFS) of a maximum of Rs. 1,000 crores.

Let us take a quick look at the details available about this upcoming IPO and its latest developments.

Purpose of this Initial Public Offer

As per the DRHP, Supriya Lifescience intends to use the proceeds from this IPO to meet these following objectives –

  • Repay debts – This company plans to repay and prepay its existing borrowings.
  • For expansion – Supriya Lifescience will use the proceeds to expand its manufacturing facilities at its main plant-based in Lote, Maharashtra.
  • To boost production – Supriya Lifescience intends to boost its production of active pharmaceutical ingredients to enhance its product portfolio.
  • To address general corporate purposes – This company will also use the proceeds to account for expenses related to exigencies, strengthening R&D capabilities and manufacturing processes.

This company already has approval from its board to use Rs. 85.8 crores from its IPO proceeds to account for CAPEX and another Rs. 67 crores to repay debts.

Crucial IPO Details – At a Glance

Check the most important information of this upcoming initial public offer below –

  • It is expected that the IPO shares of Supriya Lifescience will list on both NSE and BSE.
  • The face value of the equity shares will be Rs. 2 each.
  • Qualified institutional buyers, retail individual investors and non-institutional investors can subscribe to the shares of this upcoming IPO.

Here’s a tabular representation of how the IPO issue will be reserved for different investor categories –

Qualified Institutional Buyers Retail Individual Investors Non-Institutional Investors
75% 10% 15%

Investors can check the Supriya Lifescience IPO allotment status on the official portal of the company’s registrar.  They can also check the status on the web portals of stock exchanges and on the Angel One website.

Which Entities have been appointed as the Registrar and Lead Managers of Supriya Lifescience IPO?

The company appointed these entities in the said roles –

Lead Managers

Axis Capital and ICICI Securities are appointed as the lead managers for Supriya Lifescience IPO.

Registrar

Link Intime India will act as the registrar for this company.

On another note, Satish Waman Wagh is the company’s promoter, whose shares will be diluted in this upcoming IPO. In a broader sense, the promoter holds 72,642,390 equity shares, representing around 99.26% of the company’s issued, subscribed, and paid-up shares.

Where does Supriya Lifescience Stand Financially?

As of 31 December 2020, Supriya Lifescience registered a total asset of Rs. 3,568.28 million. It also recorded Rs. 761.86 million as profit after tax during the same period.

Here’s a tabular representation of how the company fared in the last fiscal years to offer you an insight into the same –

Financial Year Total Revenue in Millions Total Assets in Millions Profit After Tax in Millions
2020-2021 Rs. 3,227.13 Rs. 3,364.01 Rs. 733.74
2019-2020 Rs. 2,858.62 Rs. 2,530.52 Rs. 394.24
2018-2019 Rs. 2,215.10 Rs. 2,453.95 Rs. 87.28

Final Takeaway

Supriya Lifescience is touted as India’s largest exporter of ketamine hydrochloride and chlorpheniramine maleate. Its advanced manufacturing capability and R&D strategies have allowed the company to grab a sizeable portion of the market.

Collectively, they make this upcoming IPO a lucrative investment option for investors looking to speculate on the growth of the pharma sector. Also, the strong financial standing of the company ensures faith among prospective investors regarding its sustainable earnings and regular returns.

Regardless, interested investors should make it a point to conduct a SWOT analysis of this company to make a profitable and informed decision.

 

Frequently asked Questions

  1. When will Supriya Lifescience IPO be open for subscription?

Supriya Lifescience is yet to announce subscription details about this upcoming IPO.

  1. Who is the statutory auditor of Supriya Lifescience?

Kakaria and Associates LLP is the auditor of Supriya Lifescience.

  1. Who is the legal counsel of Supriya Lifescience?

Khaitan & Co is the legal counsel of Supriya Lifescience.

  1. When will the basis of allotment be finalised for Supriya Lifesciene IPO?

The company is yet to share information about the finalisation of the basis of allotment date.

  1. When will the allotment money of Supriya Lifescience IPO be refunded?

Supriya Lifescience has not shared the information about its IPO refund initiation.