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Supriya Lifescience Limited is one of the leading Manufacturer of active pharmaceutical ingredients in Mumbai, which is one of India’s leading manufacturer and supplier of active pharmaceutical ingredients. As of October 31, 2021, it has been available in 38 APIs, focusing on various therapeutic components such as antihistamine, analgesic, anesthetic, vitamin, anti-asthmatic and anti-allergic.
The proceeds from the new issue will be used for capital expenses, debt repayment, and general business purposes. The company intends to invest Rs 92 crore in financing the company’s capital expenditure needs. More than Rs 60 crore will be used for repayment / prepayment on other loans. And the rest will go to the general business objectives.
Supriya’s share was priced at Rs 524 in the gray market as on December 2021. Investors can bid for at least 54 shares and at a rate of 54 shares thereafter. Retail investors can bid for small shares worth Rs 14,796 in one place, and their maximum value is Rs 1,92,348 for 13 lots, as they are allowed to invest in an IPO up to Rs 2 lakh. A single investor can apply for up to 13 lots (702 shares or ₹ 192,348).
The company’s export of Salbutamol Sulphate from India has seen a 75% -80% increase in FY21, the major export areas are Singapore, USA, Thailand, China, Bangladesh, Germany and Indonesia. In 2021, its products were exported to 86 countries to 1,296 customers. In FY21, the contribution of revenue from regulated and under-regulated markets stands at 38.2% and 61.8%, respectively. Supriya Lifescience has been the largest supplier of Chlorpheniramine Maleate (anti-histamine and anti-allergies) and Ketamine Hydrochloride (pain management) from India, donating 45% -50% and -60% -65%, respectively, for API export. from India, between FY17-FY21. As of October 31, 2021, 12 of its existing products have been rolled back, accounting for 67.1% of total revenue during FY21, which has led to an increase in genes and a lower reliance on suppliers. In addition, the company has contributed 25% -30% of Vitamin B2 shipments (Riboflavin, Lactoplavin) and its salt from India in FY17-FY21 in dosage.
The market for anti-histamine and anti-allergy therapeutic API is expected to reach 8% -10% CAGR between 2020-2025, driven by increased public and private health care costs and the influx of prescription drugs through an additional share of generic drugs.
As per the documented information , the Peer companies are as follows
The company’s business depends on its ability to manage production and R&D services, which are subject to various operational risks, including political instability. The proceeds from the new issue will be used for capital expenses, debt repayment, and general business purposes.
Trading will commence from December 28, 2021, on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The allotment of shares will be finalized by December 23, 2021, and the unsuccessful investors will be returned to their bank accounts by December 24, 2021. The letter that holds the lead managers in the case is ICICI Securities and Axis Capital.
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