Supriya Life Science IPO: Supriya Lifescience Limited opened its first public offering, or IPO, a day ago and was already 2.33 oversubscribed on day 1, according to data from the BSE. Supriya Lifescience is one of the leading Indian manufacturers and suppliers of active pharmaceutical ingredients (“APIs”), with a focus on research and development. The strong response to the Supriya Lifescience IPO was supported by private buyers who subscribed 11.84 times their shares on the first day of bidding. The allocated quota for non-institutional investors has been booked 66 percent so far. However, Qualified Institutional Buyers were still required to bid on the listing from Day 1 of the bidding process.
Here are the key details about Supriya Lifescience’s IPO that you need to know if you want to bid on the bid:
Supriya Lifescience IPO Prize, Other Details
The price range of the Supriya Lifescience IPO was set at Rs 265 to Rs 274 per share of the share. The IPO will be open from registration until December 20th and was open on December 16th. The stock market will be closed on December 18 and 19 as the markets are closed on weekends.
Supriya IPO plans to raise Rs 700 crore at the top of the price band but has already raised Rs 315 crore through anchor investors who booked the issue on December 15, a day prior to the opening of the issue. Supriya Lifescience IPO consists of a new issue worth Rs 200 crore while Rs 500 crore will be an offer for sale (OFS) to selling shareholders.
Supriya IPO Batch Size
Investors can bid on a minimum of 54 shares of the Supriya Lifescience IPO and in multiples of 54 thereof. A bidder can bid on a minimum of one lot and a maximum of 13 lots.
A whopping 75 percent of the total offering of the Supriya Lifescience IPO is reserved for qualified institutional buyers, while 15 percent of the shares are reserved for non-institutional buyers. Retail investors can bid for up to 10 percent of the total bid size.
Supriya Lifescience IPO GMP
The unlisted shares of Supriya Lifescience IPO took a premium of Rs 280, which is more than 102 percent of the upper price band of Rs 274. Supriya Lifescience IPO’s high gray market premium indicated a strong listing for the issuance later this month.
Supriya Lifescience IPO Strength
The company’s core strengths lie in identifying generic (no longer patented) molecules in existing therapeutic segments that match existing chemistry and manufacturing infrastructure and the ability to develop the product and scale production , said Anand Rathi. Supriya Lifescience’s API backward integration ensures a constant supply of intermediates. The company has four production blocks that are therapeutically separated by segment. Supriya Lifescience has delivered strong and consistent financial growth since fiscal 2019. It has a proven track record of more than 12 years and has a strong balance sheet and stable cash flow profile.
Do you need to subscribe?
Anand Rathi: At the high end of the IPO price band, Supriya Lifescience Ltd. offered at a P/E of 17.8x FY21 earnings, with a market cap of
Rs 22,052 million. The company has significant scale with a leading position in & niche products; It is backwards integrated and has advanced
manufacturing, research and development capabilities. The company has high profit margins, a strong balance sheet and reported a RoNW of 46.04 percent in FY21. However, the IPO is fully priced and requires rich valuations – which is why we give the IPO a “Subscribe (Long Term)” rating.
HEM Effects: Company with significant scale and leadership position in all major
& Niche Products has a backward-integrated business model and advanced manufacturing and research and development capabilities. The company has also shown consistent financial performance thanks to its risk-free business model and has an experienced senior management team and qualified operational staff.
Therefore, to take care of all of the above, we recommend “Subscribe” at issuance for both list profits and long term.
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