Sudarshan Pharma Industries SME IPO: Check latest GMP and subscription status

Sudarshan Pharma Industries Private Limited SME IPO comes with an issue size of 6,862,400 shares of ₹10 worth ₹50.10 Cr. The subscription for this SME IPO opened on 09 March 2023 and will last till 14 March 2023. The issue price for this initial public offering (IPO) is ₹71–73 per share with a face value of ₹10. NII is 15%, QIB is 50%, and the retail allocation is 35%. With an application fee of ₹116,800, the minimum market lot for the Sudarshan Pharma IPO is 1600 shares that can be considered to purchase. The IPO is set to trade on the BSE SME.

On March 17, 2023, the basis of allotment for the Sudarshan Pharma Industries initial public offering will be finalised. Although the Sudarshan Pharma Industries IPO listing date has not yet been made official, March 22, 2023 is the anticipated day of listing. Retail-individual investors may apply for up to 1 lot, or 1600 shares, in the Sudarshan Pharma Industries IPO, with a maximum application amount of ₹116,800.

The Sudarshan Pharma Industries IPO received 0.40 times as many subscriptions on Day 1, or on March 9, 0.47 times from the retail category, 0.00 times from QIB, and 0.37 times from NII. On Day 2 i.e. on 10th March, Sudarshan Pharma Industries IPO subscribed 0.52 times. The public issue subscribed 0.67 times in the retail category, 0.00 times in QIB, and 0.38 times in the NII category. On Day 2, the total number of shares bid was 31,76,000. The total number of shares bid for the retail category was 24,51,200 against the number of shares offered of 36,51,200, whereas the total number of shares bid for NII category was 7,24,800 against the number of shares offered of 19,08,800.

Sudarshan Pharma Industries latest IPO GMP today was last tracked at ₹4 apiece. The estimated listing price for the Sudarshan Pharma Industries SME IPO is ₹77 (Upper band price + GMP), based on the latest GMP, hence the expected premium over the IPO price is 5.48%.

Commenting on the commencement of Sudarshan Pharma Industries SME IPO, Manish Khanna, Co-founder at Unlisted assets said “Sudarshan Pharma Industries Limited is engaged in the business of specialty chemicals and intermediates for pharma, agrochemicals, coating, paints, adhesives, and various other industries. The company is going for IPO second time. It originally filed its IPO in 2019 and received a 47% subscription and the company withdrew from the IPO on the last date.”

“The company recorded a turnover of Rs.148 crores with a net profit of Rs.1.28 crores in FY20. In FY21, it recorded a turnover of Rs.193.73 crores and a net profit of Rs.2.67 crore. In FY22 a turnover of Rs.357.56 crores and a net profit of Rs.5.3 crores. For H1 of FY23, the company posted revenue of Rs.195.9 crores and a net profit of Rs.3.61 crores. There has been an increase in its top line and bottom line in the last 18 months, which the company claims is due to its focus on a high-margin product mix,” Manish Khanna further added.

“The company borrowings have more than doubled from Rs.20.81 cr. as of March 31, 2020, to Rs.49.41 cr. as of September 30, 2022, which may be due to an increase in turnover from Rs.148 crores in FY20 to Rs.357 crores in FY22. The subscription for the IPO started on 9th March 2023 and will close on 14th March 2023. As on date 10th March 2023, the company has received a subscription of 0.67 times in the retail category and 0.38 times subscription in the Non-Institutional Buyer category, getting a total subscription of 0.525 times,” said Manish Khanna.

“The Grey Market Premium (GMP) of the company is observed at Rs.4 as of 10th March 2023 as per the market sources. Considering the issue band price of Rs.71 – Rs.73, the IPO could list at Rs.77(Upper band price + GMP). The IPO could give listing gains of up to 5% basis current market inputs,” claimed Manish Khanna.