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Supriya Lifescience IPO ends with robust subscription

Published on Dec 21, 2021 11:07

The initial public offer (IPO) of Supriya Lifescience received bids for 1,03,89,66,318 shares as against 1,45,28,299 shares on offer. The issue was subscribed 71.51 times.

The non institutional investors category was subscribed 161.22 times. The retail investors category was subscribed 56.01 times. The qualified institutional buyers category was subscribed 31.83 times.

The issue opened for bidding on 16 December 2021 and it closed on 20 December 2021. The price band of the IPO was fixed at Rs 265-274 per share.

Ahead of the IPO, the company on 15 December 2021, finalized allocation of 1,14,96,351 equity shares to anchor investors at an allocation price of Rs 274 per share, aggregating to Rs 315 crore.

The IPO comprised of fresh issue of equity shares worth up to Rs 200 crore and an offer for sale of Rs 500 crore by existing shareholders.

Satish Waman Wagh, the promoter of the company, currently holds an aggregate of 7,26,42,390 equity shares, aggregating to 99.26% of the pre-offer issued share capital. The post IPO shareholding for the same is expected to be around 68.24%.

The objectives for the fresh issue are funding capital expenditure requirements of Rs 92.3 crore, Rs 60 crore for repayment/pre-payment, in full or part of borrowings and remaining amount will be used for general corporate purposes.

Supriya Lifescience is one of the key Indian manufacturers and suppliers of active pharmaceuticals ingredients (APIs), with a focus on research and development. As of 31 October 2021, the company has niche product offerings of 38 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anesthetics, vitamin, anti-asthmatic and antiallergic.

The business operations of the company are supported by a modern manufacturing facility located in Parshuram Lote, Maharashtra, which is approximately 250 km from Mumbai. Its manufacturing facility has received approvals from USFDA, EDQM TGA-Australia, KFDA-Korea, PMDA Japan, NMPA (previously known as SFDA)- China, Health Canada, in relation to the products being exported to the relevant jurisdictions.

The manufacturing facility is spread across 23,806 sq.mt, having reactor capacity of 332 KL/ day and seven cleanrooms. In addition, company has acquired a plot of land, admeasuring 12,551 sq.mt, near the present manufacturing facility, wherein the Company intends to expand its manufacturing infrastructure.

The company intends to continue to drive R&D initiatives towards the development of innovative APIs. It also intends to improve its R&D capabilities, with a focus on capturing more high-value first-to-market opportunities in key international markets, as well as leveraging broad product basket to enhance market position globally.

The company reported a net profit of Rs 65.96 crore on sales of Rs 224.80 crore in six month ended September 2021.

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