Supriya Lifescience Limited IPO

Supriya Lifescience Limited IPO Review – 10 facts that you should know before investing?

Supriya Lifescience Limited IPO Review

Supriya Lifescience Limited IPO

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.

Objectives of IPO

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.

IPO Details

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).

Offer Allocation of IPO

  • 75% of issues are addressed to professional institutional buyers and
  • 15 percent to non-institutional clients.
  • 10 percent to retail investors of the issue.

Promoters

  • Shivani Satish Wagh (0.04%)
  • Saloni Satish Wagh (0.04%)
  • Asha Waman Wagh (0.2%)
  • Smita Satish Wagh (0.44%)
  • Satish Waman Wagh (99.26%). Satish Waman Wagh is the Chairman and CEO of the company.

Company Financials of Supriya Lifescience Limited

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.

Sectors View of Company

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.

Peer Companies

As per the documented information , the Peer companies are as follows

  • Solara Active, currently trade at P/E 20.35
  • Neuland Lab, currently trade at P/E 30.21
  • Aarti Drugs, currently trade at P/E 26.57
  • Divis Lab. currently trade at P/E 56.76

Risk Factors of Company

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.

Listing And Allotment Status

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.

Read Latest Article: DSP Nifty Midcap 150 Quality 50 ETF : Best ETF Mutual Funds NFO to Invest in 2021.

Disclaimer
All the information are used for education purpose only. Investing in IPO poses a risk of financial losses. Investors must therefore exercise due caution. InvestoAxis is not liable or responsible for any losses caused as a result of decisions based on the article.

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