Supriya Lifescience IPO: The Rs 700 crore IPO of API maker Supriya Lifescience Limited is closing today. Its unlisted shares are trading at a premium of 100% in the gray market. Know full details here.
How much share for whom?
75% of the issue is reserved for Qualified Institutional Buyers (QIBs), 15% for non-institutional investors and 10% for retail investors. The lot size is of 54 shares i.e. according to the upper price of the price band, investors have to invest at least Rs 14796. ICICI Securities and Axis Capital are the Book Running Lead Managers of the issue.
How many shares have been issued?
Under this IPO, fresh shares worth Rs 200 crore will be issued, while promoter Satish Waman Bagh will sell shares worth Rs 500 crore under the Offer for Sale (OFS). Earlier the company was going to offer shares for sale worth Rs 1000 crore, but later it was reduced to Rs 500 crore. Presently, the promoter's stake in the company is 99.26 per cent while the promoter group holds 0.72 per cent. The face value of the shares is Rs.
What does the company do?
Supriya Lifesciences is one of the largest Indian companies in the manufacturing and supply of active pharmaceutical components. The money raised through the IPO will be used to meet capital expenditure requirements, repay loans and for general corporate purposes. Supriya Life Sciences is a leading Indian manufacturer and supplier of leading pharmaceutical chemicals (APIs). The main emphasis of the company is on R&D. ICICI Securities and Axis Capital were appointed as merchant bankers to advise the company on the IPO.
Financial position of the company.
Supriya Lifesciences' emphasis is on Research and Development (R&D). The company manufactures 38 APIs as of 31 October 2021. From 1 April 2021 to 31 October 2021, the company's products were exported to 1296 customers including 346 distributors in 86 countries. The company's API business is spread across Europe, Latin America, Asia and North America. The profit of the company has increased continuously. It had a net profit of Rs 123.83 crore in the financial year.
How much is gmp.
The shares of Supriya Lifesciences are currently trading at Rs 524 i.e. around 100% premium in the gray market. This is Rs 280 more than its issue price. It is clear from this that there is a lot of interest from investors in this IPO. The allotment of shares is likely to be finalized on December 23, while the date for listing has been fixed for December 28. Such a strong GMP of an IPO in a declining market shows that there is a huge earning opportunity.
Rs 315 crore raised from anchor investors.
The company has raised Rs 315 crore from anchor investors before the IPO. The company has decided to issue 1,14,96,351 equity shares to anchor investors at a price of Rs 274 per share, the company said in a circular uploaded on the BSE. The company's anchor investors include BNP Paribas Arbitrage, Societe Generale, Reliance General Insurance Company, Aditya Birla Sun Life Insurance Company, Kuber India Fund, Saint Capital Fund, Dovetail India Fund, Cohesion MK Best Ideas Sub-Trust, Malabar India Fund, and Nippon Life India Trustee Ltd.