Supriya Lifescience Shares Debut At 55% Premium Over Issue Price

Edited by Nikita Prasad

28 Dec 2021, 10:21 AM IST

Supriya Lifescience IPO was subscribed 71.47 times by the end of its bidding process.

Supriya Lifescience shares made a strong debut on Tuesday, December 28, amid positive market sentiment. Shares of the active pharmaceuticals ingredients (API) manufacturer opened on the BSE at Rs 425 apiece - a premium of 55.1 per cent or Rs 151 higher than the issue price of Rs 274. On the NSE, Supriya Lifescience shares were listed at Rs 421 apiece - a premium of 53.7 per cent.

With its debut, Supriya Lifescience emerged as of the strongest listings in recent times. Supriya Lifescience's IPO was open for subscription between December 16 - December 20. The Rs 700-crore initial public offer (IPO) was subscribed 71.47 times by the end of its bidding process. The IPO had a fresh issue of up to Rs 200 crore and an offer for sale of up to Rs 500 crore. The company sold shares in the price band of Rs 265-274 per equity share. It raised Rs 315 crore from anchor investors ahead of its IPO.

"Supriya Lifescience, a pharma API manufacturer, made a stellar debut with 55 per cent gains, listing at Rs 425/share against IPO price of Rs 274, amidst positive market sentiments. It has a niche product portfolio of 38 APIs with focus primarily on diverse therapeutic areas.

It has consistently been India's largest exporter of certain niche products with well-balanced presence between regulated and semi/non-regulated markets,'' said Ms. Sneha Poddar, AVP Retail Research, Motilal Oswal Financial Services.

''We like Supriya for its niche product portfolio, backward integrated business model, and robust financials. It is well placed to tap opportunity in the pharma API market given its strong pipeline focused on further diversification,'' added Ms Poddar.

Supriya Lifescience is one of the key Indian manufacturers and suppliers of active pharmaceutical ingredients (APIs), with a focus on research and development. As of March 2021, the company produces 38 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti-allergic. The company is one of the largest exporters of Salbutamol Sulphate from India in fiscal 2020-21 in terms of volume.