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SUPRIYA LIFESCIENCE LTD

IPO Details

ICICI Direct Research Rating : UNRATED
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54 shares
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₹ 265 to 274
₹ Upto 700 cr
RHP

Timeline

  • 23-Dec-2021
  • 24-Dec-2021
  • 27-Dec-2021
  • 28-Dec-2021

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

About Company

One of the key Indian manufacturers and suppliers of active pharmaceuticals ingredients (“APIs”), with a focus on research and development. As of March 31, 2021, they have niche product offerings of 39 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti allergic.

Were among the largest exporters of Salbutamol Sulphate from India in Fiscal 2020 in terms of volume (Source: CRISIL Report as per Company DRHP).

Strengths & Risks

Strengths (3)

Significant scale with leadership position across key & niche products

The company believes their core strength lies in identifying generic molecules (off-patent) in the existing therapeutic segments which fits in to existing chemistry and production infrastructure and their ability to develop the product and scale-up production.

Risks (2)

The business is subject to extensive regulation

Failure to comply with regulations prescribed by governments and regulatory agencies or to obtain, maintain or renew statutory and regulatory licenses, permits and approvals required to operate business, results of operations and financial condition could be adversely affected.

  • Significant scale with leadership position across key & niche products

    The company believes their core strength lies in identifying generic molecules (off-patent) in the existing therapeutic segments which fits in to existing chemistry and production infrastructure and their ability to develop the product and scale-up production.

  • Backward integrated business model

    As on May 2021, 11 of the existing products were backward integrated, which contributed 63.25% of the total revenue for nine months period ended December 31, 2020.

  • Geographically diversified revenues with a global presence across 78 countries

    Customers include global pharma companies such as Syntec Do Brasil LTDA, American International Chemical Inc and AT Planejamento E Desenbolvimento De Negocios Ltda etc.

  • The business is subject to extensive regulation

    Failure to comply with regulations prescribed by governments and regulatory agencies or to obtain, maintain or renew statutory and regulatory licenses, permits and approvals required to operate business, results of operations and financial condition could be adversely affected.

  • Manufacturing or quality control problems in such an industry may be detrimental

    Such events may damage the company's reputation and expose them to litigation or other liabilities, which could adversely affect the results of operations and financial condition.

Financials

Net Worth
Revenue from Operations
Total Borrowings
Restated Profit for the Year
Restated Earnings per Share

Industry Overview

Global pharmaceutical market to grow at steady ~5.3% CAGR over the next five years

Global pharmaceutical market has grown by around 5.5-6.0% CAGR from ~USD 925 billion in CY14 to ~USD 1,300 billion in CY20. It is expected to sustain this growth over the next five years to reach USD 1,630-1,730 billion in CY25. (Source: Company DRHP).


Active pharmaceutical ingredients (APIs) form the major cost for formulation players

The raw material cost also includes the cost for inert materials i.e the materials used to stabilise the impact of APIs and preserve them for a longer period of time. However, the inert material cost does not form more than 10% of the overall raw materials.

Supriya Lifescience Ltd

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54 shares

Subscription Status

Shareholder -
Qualified Institutional Buyers -
Non-Institutional Investor -
Retail Individual Investor -
Employee -
Total -

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*The financials mentioned above are sourced from DRHP/ RHP documents.

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