Robust Subscription on Day Two Signals High Investor Confidence
The Sudeep Pharma IPO continues to draw robust investor interest as the issue, which opened on November 21 and closes on November 25, was subscribed 2.62 times by the second day. With a price band set between ₹563 and ₹593 per share, the Sudeep Pharma IPO has already become one of the most closely watched public offerings this month.
According to LiveMint, the IPO was fully booked on its opening day, with a subscription rate of 1.42x. The Sudeep Pharma IPO GMP today stands at ₹121, signaling strong enthusiasm in the grey market. Based on this premium, analysts expect the listing price to hover around ₹714 per share, roughly 20% above the upper end of the IPO price band.
Grey Market Momentum and Investor Sentiment
The rising Sudeep Pharma IPO GMP today underscores a positive outlook for the company’s stock performance once it lists on November 28. The grey market premium, which has fluctuated between ₹0 and ₹130 over the past week, indicates heightened demand from both institutional and retail investors.
Experts note that the grey market premium (GMP) is a strong indicator of investor willingness to pay more than the official issue price — a sign of high confidence in Sudeep Pharma’s business fundamentals and growth prospects.
Strong Fundamentals and Market Position
Headquartered in Gujarat, Sudeep Pharma is a leading manufacturer of food-grade minerals and phosphate-based ingredients, catering to industries such as infant nutrition, clinical nutrition, and the food and beverage sector. With six advanced manufacturing facilities and a combined annual production capacity of 50,000 metric tonnes, the company maintains a strong foothold in both domestic and international markets.
The firm’s strategic acquisition of NSS has expanded its European presence and reinforced its position as a trusted supplier in the global pharmaceutical and nutrition ingredients market. Analysts also note that Sudeep Pharma’s entry into battery-grade mineral production could serve as a long-term growth catalyst.
Financial Performance and Valuation
Brokerages have described Sudeep Pharma’s financial performance as robust, with steady revenue growth, healthy EBITDA margins, and a return on net worth (RONW) of 27.88% for FY25. However, valuations remain on the higher side, with a price-to-earnings (P/E) ratio of 45–48x, prompting some experts to label the IPO as “aggressively priced.”
Despite this, firms such as Geojit Investments and Swastika Investmart recommend a ‘Subscribe’ rating for long-term investors. They emphasize the company’s solid balance sheet, strong R&D capabilities, and consistent innovation as key strengths.
“Sudeep Pharma is well-equipped for long-term expansion. While short-term listing gains may be moderate, investors with a 2–5 year horizon could benefit significantly,” analysts noted.
IPO Structure and Use of Proceeds
The Sudeep Pharma IPO comprises a fresh issue of ₹95 crore and an offer for sale (OFS) of 1.35 crore equity shares, totaling around ₹800 crore. Proceeds from the fresh issue — approximately ₹75.81 crore — will be utilized for capital expenditures related to equipment purchases for the company’s Nandesari Facility 1 in Gujarat, along with general corporate purposes.
The IPO allotment is expected to be finalized on November 26, with refunds initiated on November 27. Successful applicants will see shares credited to their demat accounts the same day, ahead of the BSE and NSE listing scheduled for November 28.
Merchant Bankers and Registrar
ICICI Securities and IIFL Capital Services are acting as the lead managers for the issue, while MUFG Intime India Pvt. Ltd. serves as the registrar.
Final Outlook
The strong response to the Sudeep Pharma IPO demonstrates investor faith in the company’s fundamentals, especially its leadership in mineral-based ingredients and expanding global reach. While valuations suggest limited short-term upside, the Sudeep Pharma IPO GMP today signals that market sentiment remains bullish.
For long-term investors seeking exposure to a niche yet fast-growing segment of the pharmaceutical and nutrition industry, Sudeep Pharma could prove a valuable addition to their portfolios.Stay updated on market trends and startup investment opportunities at StartupNews.FYI
