Sudeep Pharma IPO Day 3 Highlights: GMP dips to 15% on last day of bidding; issue booked 93.71x— Should you apply?

Sudeep Pharma IPO was subscribed 93.71 times on the third day of the issue. Here's how different quotas were subscribed:

QIB: 213.08x

NII: 116.72x

Retail: 15.65x

According to the F&S Report, the company is a leading manufacturer of pharmaceutical, food, nutrition, and specialty ingredients, in terms of production volume, as of June 30, 2025, with an emphasis on mineral-based products and iron phosphate.

According to the F&S Report, as of June 30, 2025, the company is a leading manufacturer of specialty food ingredients in India with a wide portfolio of products including encapsulated preservatives, such as sorbic acid and calcium propionate, which are extensively used in baked goods to prolong shelf life and prevent microbial growth.

Its market leadership is reinforced by its comprehensive product portfolio. From its early focus on excipients, it has broadened its product range to include specialized ingredient solutions. As of June 30, 2025, it has a diverse portfolio of over 100 products.

The company operates three Manufacturing Facilities in Vadodara, Gujarat, with a combined annual available manufacturing capacity of 65,579 MT and covering a total area of approximately 45,784 square meters, as of June 30, 2025.

Further, pursuant to its acquisition of NSS as a Material Subsidiary with effect from May 22, 2025, it also has a manufacturing facility in Ireland.

The facilities are equipped with advanced technologies and automation to ensure precise control over manufacturing parameters, consistent product quality, and enhanced purity.

Sujit Jaysukh Bhayani, Avani Sujit Bhayani, Shanil Sujit Bhayani, Sujeet Jaysukh Bhayani HUF, Riva Resources Private Limited and Bhayani Family Trust are the Promoters of our Company.

The global food ingredients market reflects distinct trends across regions, shaped by consumer preferences, regulatory environments, and industry advancements. The specialty food ingredients market is rapidly expanding, driven by growing consumer demand for healthier and more innovative food products. Advancements in distribution channels, personalized nutrition, and integration into functional foods contribute to the expansion of the global market for vitamins and minerals.

Sudeep Pharma IPO was subscribed 67.54 times so far on the third day of the issue. Here's how different quotas were subscribed:

QIB: 137.49x

NII: 102.63x

Retail: 12.53x

At the upper price band, the company is valued at 48.3x FY25 P/E, translating to a post-issue market cap of ₹66,979 million.

They have also created a wholly owned subsidiary, SAMPL, to leverage their mineral chemistry capabilities in advanced materials, including a new facility for PCAM production, starting with battery-grade iron phosphate for LFP batteries used in EVs and energy storage.

Additionally, the company aims to strengthen its presence in regulated markets such as the US and Europe by capitalizing on USFDA-approved facilities, boosting exports, and transitioning to direct market access supported by local warehousing and sales teams.

Given these factors, the IPO appears fully priced, and we assign a “Subscribe – Long Term” rating.

Sudeep Pharma serves over 1,100 customers, including Pfizer, Intas, Mankind, Aurobindo, Alembic, Merck and Danone, with an average relationship tenure of more than seven years, reflecting strong customer stickiness and sustained revenue visibility.

At the upper price band of ₹593, SPL is available at a P/E of 48x (FY25 diluted basis), which appears to be fairly priced.

The company is well-positioned for sustained long-term growth, supported by robust operational performance, the NSS acquisition that strengthens its European footprint in infant nutrition and formulations, and its planned foray into the high-growth battery-grade minerals segment.

Coupled with a strong balance sheet, dedicated R&D focus, and continued product innovation, SPL presents a compelling long-term story.

We therefore assign a SUBSCRIBE rating for investors with a medium- to long-term investment horizon.

The objective of the IPO is as follows:

• Capital expenditure towards procurement of machinery for the production line located at Nandesari Facility.
• General corporate purposes

Sudeep Pharma IPO was subscribed 11.16 times so far on the third day of the issue. The company garnered bids for 11,79,13,850 shares as against 1,05,64,926 shares on offer. Here's how different quotas were subscribed:

QIB: 3.67x

NII: 29.59x

Retail: 7.54x

The company delivers robust performance with rising revenues, high EBITDA margins, and an impressive FY25 RONW of 27.88%. It operates as a preferred partner for critical pharma-grade ingredients, serving a solid roster of marquee global customers. The issue is considered “aggressively priced” at a P/E of 45–48x, fully capturing its current stable profitability. This steep valuation leaves very little room for immediate listing gains or short-term “pops.”

— Views by Swastika Investmart

Sudeep Pharma on Thursday said it has mobilised ₹268.5 crore from anchor investors ahead of its initial public offering (IPO).

Some of the institutions that participated in the anchor include SBI Mutual Fund (MF), HDFC MF, ICICI Prudential MF, Nippon India MF, WhiteOak Capital MF, Aditya Birla Sun Life MF, Motilal Oswal MF, Quant MF, Bandhan MF, UTI MF, Edelweiss MF, Tata AIA Life Insurance and SBI Life Insurance, according to a circular uploaded on BSE's website.

As per the circular, the Vadodara-based company allocated 45,27,823 equity shares at ₹593 per share to anchor investors, raising ₹268.5 crore.

Sudeep Pharma enters the market as a specialised excipient and mineral-based ingredients manufacturer with a meaningful global footprint. The company operates three facilities with a combined installed capacity of ~65,579 MT, supplying to over 100 countries and serving marquee pharmaceutical and nutraceutical clients. In FY24, revenue rose to ₹459.28 crore, while PAT jumped to ₹133.15 crore, reflecting margin expansion and operating leverage. For the nine months ended Dec ’24, it reported ₹344.45 crore in revenue and ₹94.54 crore in profit, indicating sustained momentum.

The IPO size stands at ₹895 crore ( ₹95 crore fresh + ₹800 crore OFS) with a price band of ₹563– ₹593. At the upper band, valuations translate to roughly 46× FY24 EPS (~ ₹12.78) and a P/B of ~17.9× against a NAV of ₹33.10 per share. Although the company delivered a strong ~37% ROE, the multiple sits well above typical speciality-chemical and ingredient peers, which generally trade in the 15–25× earnings range depending on scale, diversification, and regulatory risk.

Sudeep’s strengths lie in its export dependence, certifications, and ability to integrate into regulated pharma supply chains, supported by low leverage and improving profitability. However, client concentration remains elevated, working-capital intensity has increased, and the planned 50,000 MT capacity expansion by FY26 must translate into tangible revenue growth to justify current valuations. The business is fundamentally strong with a differentiated niche, but the pricing already reflects high expectations—leaving limited room for error and making execution over the next 12–24 months the key determinant of investor returns.

— Views by Harshal Dasani, Business Head, INVAsset PMS

Sudeep Pharma IPO opened for the third and final day today. Investors can apply for the IPO till 5pm.

The IPO received bids for 5,37,83,650 shares against 1,05,64,926 shares on offer, according to NSE data, resulting in 5.09x bids on the second day.

The category for non-institutional investors fetched 12 times subscription, while the quota for Retail Individual Investors (RIIs) got subscribed 4.96 times. The Qualified Institutional Buyers (QIBs) portion received 13 per cent subscription.

IPO Open Date: Fri, Nov 21, 2025

IPO Close Date: Tue, Nov 25, 2025

Tentative Allotment: Wed, Nov 26, 2025

Initiation of Refunds: Thu, Nov 27, 2025

Credit of Shares to Demat: Thu, Nov 27, 2025

Tentative Listing Date: Fri, Nov 28, 2025

Sudeep Pharma IPO GMP today fell to ₹86 today. This means that shares of Sudeep Pharma are trading ₹86 higher than the upper end of the price band of ₹593. At the prevailing GMP, Sudeep Pharma IPO listing price could be ₹679 — a premium of 14.50%.