Supriya Lifescience lists at 55% premium
Active pharmaceutical ingredients manufacturer Supriya Lifescience, the 64th listing in 2021, made a stellar debut on the bourses, by clocking the first trade at Rs 425, a 55% premium over its issue price of Rs 274 per share on the BSE.
The stock has opened at Rs 421, a 54% higher against its issue price on the National Stock Exchange (NSE).
SLL is one of the key Indian manufacturers and suppliers of active pharmaceuticals ingredients (APIs) had garnered investors’ interest on the back of strong financials and attractive valuations.
The IPO had received a strong response, which was subscribed 71.51 times on back of robust subscription of individual investors. Retail investors bid 56 times the reserved portion, and non-institutional investors’ portion was subscribed 161 times, whereas qualified institutional investors bid for 31.83 times.
The company’s promoter Satish Waman Bagh divested shares worth Rs 500 crore through the IPO. The objectives for the fresh issue included funding capital expenditure requirements of Rs 92.3 crore, Rs 60 crore for repayment/pre-payment, in full or parts of borrowings and remaining amount will be used for general corporate purposes.
As of October 31, 2021, SLL offered 38 API based niche products in diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti-allergic
It has been the largest exporter of Chlorpheniramine Maleate and Ketamine Hydrochloride from India, contributing to 45-50 per cent and 60-65 per cent, respectively, of the API exports from India, between FY17 and FY21. SLL is among the largest exporters of Salbutamol Sulphate in India contributing to 31 per cent of the API exports from India in FY21 in volume terms. The company reported a net profit of Rs 65.96 crore on sales of Rs 224.80 crore in six month ended September 2021.
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