Supriya Lifescience made a strong debut on the stock exchanges, maintained a robust momentum throughout its listing day, and closed 43 percent higher than its initial public offering price, backed by positive market sentiment and healthy IPO subscription figures.
The stock opened at the day’s high of Rs 425 on the BSE on December 28, largely meeting analyst expectations, a gain of 55 percent from its issue price of Rs 274 per share. It fell to an intraday low of Rs 383.15 but still ended the day with a 43 percent gain at Rs 390.35.
It touched an intraday high of Rs 421 and low of Rs 383.20 on the National Stock Exchange, before closing with a gain of 43 percent at Rs 390.85.
Over 23.5 million shares of Supriya Lifescience traded on the NSE and more than 1.44 million shares changed hands on the BSE.
The manufacturer of active pharmaceutical ingredients has a niche portfolio of 38 products for diverse therapeutic areas. It has consistently been India’s largest exporter of certain niche products with a well-balanced presence between regulated and semi/non-regulated markets.
“We like Supriya for its niche product portfolio, backward integrated business model and robust financials. It is well-placed to tap opportunity in the pharma API market given its strong pipeline focused on further diversification,” said Sneha Poddar, AVP of retail research at Motilal Oswal Financial Services.
The company’s Rs 700 crore IPO was subscribed over 71 times. The benchmark BSE Sensex gained 0.8 percent to 57,897.48 on December 28
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In the past three to five years, APIs and specialty chemicals have found favour with investors.
“This trend will continue for several years. In the long run, investors should hold the stock. New investors can look for buying opportunities on dips,” said Santosh Meena, head of research at Swastika Investmart.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before making any investment decisions.