Supriya Lifescience has raised Rs 315 crore from anchor investors.
New Delhi: Initial Public Offering (IPO) of Supriya Lifescience Ltd. registration opened on Thursday and received a strong response from retail investors on the first day of bidding. The initial share sale attracted a bid of 1.98 crore of shares compared to the IPO size of 1.45 crore of shares, registered 1.37 times.
The retail individual investor section is oversubscribed 6.93 times and the non-institutional investor group is oversubscribed 0.40 times.
Approximately 75% of the issuance size has been earmarked for qualified institutional buyers (QIBs), 15% for non-institutional investors, and the remaining 10% for retail investors.
Ice:
The public offering, with a price range of Rs 265-274 per share, will end on December 20. Investors can bid a minimum of 54 equity shares and in multiples of they.
Supriya Lifescience has raised Rs 315 crore from anchor investors. BNP Paribas Arbitrage, Societe Generale, Reliance General Insurance Company, Aditya Birla Sun Life Insurance Company, Kuber India Fund, Saint Capital Fund and Nippon India Mutual Fund are among the fixed investors.
The IPO consists of an issue of new shares worth Rs 200 crore and an offer to sell (OFS) up to 500 crore by its promoter Satish Waman Wagh.
Currently, the promoter holds a 99.26% stake in the company and the ad group owns 0.72%.
Proceeds from the new issue will be used to fund capital expenditure requirements, repay debt, and for general corporate purposes.
Supriya Lifescience is one of India’s major manufacturers and suppliers of active pharmaceutical ingredients (APIs), with a focus on research and development.
ICICI Securities and Axis Capital is the leading executive book on public affairs.
Should you register?
“The company is well positioned to capture the opportunity in the API (active pharmaceutical) pharmaceutical market thanks to a strong pipeline focused on further diversification. The issue is reasonably priced at 17, 8x FY21 (2020-21) P/E (post-release basis) v/s peers (with an average P/E of 22.8x), while it has a similar growth trajectory . We therefore recommend Registering,” Motilal Oswal Retail Research said in its IPO note.
“At the upper end of the IPO price range, Supriya Lifescience Ltd. is quoted at a P/E of 17.8 times the company’s 21-year earnings, with a market capitalization of Rs 2,205.2. the company is of considerable size with a leadership position across products & niches It is backward integrated and has advanced manufacturing, research & development capabilities. The company has high profit margins, strong balance sheet and a reported RoNW (return on net worth) of 46.04% in FY21. However, the IPO is fully priced and requires a valuation by the wealthy – hence we rate the IPO “Tracking (Long Term)””, broker Anand Rathi stated.
