Supriya Lifescience IPO | The company has a healthy balance sheet position with a debt/equity ratio of 0.2x as of H1FY22, says Geojit Financial Services. The price band for the offer, which opened on December 16, is Rs 265-274 per equity share.
The public issue of active pharmaceutical ingredients supplier Supriya Lifesciences witnessed strong investor demand as the offer was subscribed 9.07x.
It received bids for 13.17 crore equity shares against the IPO size of 1.45 crore equity shares on December 20, the last day of bidding.
Established in March 2008, Supriya Life has exclusive product offerings of 38 APIs, focused on diverse therapeutic segments such as Antihistamine, Analgesic, Anesthetic, Vitamin, Anti-Asthma and Anti-Allergy as of October. It is the largest exporter of Chlorpheniramine Maleate and Ketamine Hydrochloride, contributing 45-50 per cent and 60-65 per cent respectively to API exports from India between FY17 and FY21.
Retail investors continued to give strong support to its public issue as their reserves were subscribed 37.28 times. The share of non-institutional investors was booked 7.14 times, while the portion set aside for qualified institutional investors saw 63 per cent subscription.
The global pharmaceutical market grew at around 5 percent CAGR during CY14-CY20, and is expected to sustain this growth over the next 5 years, to reach $1,585-1,625 billion in CY25 due to technological advances, aging population and sedentary life. increase in style.
Supriya Lifesciences has a sound Balance Sheet and its Debt/Equity Ratio is 0.2x as of H1FY22. The price band for the offer, which was opened on December 16, is Rs 265-274 per equity share.
"Supriya Life is available at a price/earnings of 16.7x (FY22E yearly) at an upper price band of Rs 274, which appears to be reasonably priced as compared to its peers," Geojit Financial Services said.
The brokerage has "subscribed" to the issue on a short to long-term basis, given its strong financial performance, including improved margins, increased export exposure, capacity expansion and penetration into regulated markets. Rating provided.
The company is planning to raise Rs 700 crore through its public issue, which includes a fresh issue of Rs 200 crore and an offer for sale of Rs 500 crore. The money from the new issue will be used for working capital requirements and repayment of loans.
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