Supriya LiveScience's IPO - All You Need To Know

With a fresh issuance of Rs 200 crore and an offer for sale of Rs 500 crore, Supriya Lifesciences hopes to raise nearly Rs 700 crore in the share market.

Dates to remember: The issue goes live on December 16 and will be available through December 20 . Supriya Lifescience is set to start trading on December 28.

Details of the offer: The issue includes a new issue as well as a promoter's offer for sale. The new offer is worth Rs 200 crore, and the promoters hope to raise more than Rs 500 crore.

Investors can place bids for 54 shares or multiples of 54 shares.

At the high end of the pricing band, the implied market valuation post-issue is Rs 2,200 crore.

Shareholding pattern: Before the offering, the promoters owned 99.26% of the shares, which will drop to 67.59% after the issue. 

75 percent of the issuance is allocated for eligible institutional purchasers, with the remaining 15% available for non-institutional buyers. Retail investors will be able to bid for 10% of the offering.

About the business: Supriya Lifesciences was founded in March 2008 and is one of the country's leading manufacturers and suppliers of active pharmaceutical ingredients, or APIs. An API is a chemical utilised in the completed pharma product to have a direct influence on the diagnosis, cure, mitigation, therapy, and prevention of a disease. It can also directly affect the impact by restoring, correcting, or altering it.

The company's primary emphasis is API research and development. It has 38 APIs targeted on several areas as of October 2021, including antihistamines, anaesthetics, analgesics, anti-asthmatics, and anti-allergics. 

Its sales are split between domestic and international sales. Its goods were shipped to 86 countries as of October 2021. It is India's top exporter of antihistamine Chlorpheniramine Maleate and anaesthetic Ketamine Hydrochloride.

Export sales account for over 70% of the company's revenue. Export sales accounted for 73.5 percent of total revenue in the six months ending September 2021, while domestic sales accounted for 26.4 percent.

Mankind Pharma, Acme Generics, and Akums Drugs & Pharma are among its most important clients.

Financials: In FY20-21, Supriya Lifesciences recorded a net profit of Rs 123.38 crore, up from Rs 73.37 crore the previous year. Its income also increased to Rs 396.2 crore in the current fiscal year, up from Rs 327.21 crore the previous fiscal year.

It declared a net profit of Rs 65.96 crore and sales of Rs 230.06 crore for the quarter ending September 2021.

The firm intends to invest Rs 92 crore in order to meet the company's capital expenditure requirements. Over Rs 60 crore would be utilised to re-pay or pre-pay some debts.