Sudeep Pharma raises over Rs 268 crore via anchor book ahead of Rs 895-crore IPO

Sudeep Pharma IPO News

Sudeep Pharma, which manufactures mineral-based excipients and actives for the pharmaceutical, food, and nutrition industries, has raised Rs 268.5 crore via anchor book on November 20, a day prior to the IPO opening.

The company approached capital markets with the aim to mobilise Rs 895 crore via initial public offering (IPO) at the upper end of price band of Rs 563-593 per share. The issue will open for the public subscription on November 21 and close on November 25.

Sudeep Pharma will issue fresh shares worth Rs 95 crore, while the promoters will be selling 1.3 crore shares worth Rs 800 crore via offer-for-sale.

The company that claims one of the largest producers of food-grade iron phosphate for infant and clinical nutrition, and the food and beverage sectors has finalised allocation of 45.27 lakh equity shares to 18 anchor investors at the upper price band.

Institutional investors participated in the IPO anchor book of Sudeep Pharma were SBI Mutual Fund, HDFC AMC, ICICI Prudential MF, Axis Mutual Fund, WhiteOak Capital, Aditya Birla Sun Life AMC, Quant MF, SBI Life Insuance, Bandhan MF, Tata AIA Life Insurance, and Edelweiss.

"Out of the total allocation to the anchor investors, 36.05 lakh equity shares (i.e. 79.64 percent of the total allocation to anchor investors) were allocated to 14 domestic mutual funds, which have
applied through through 20 schemes," Sudeep Pharma in its filing to exchanges said.

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The Gujarat-based company will spend Rs 75.8 crore of fresh issue proceeds for procurement of machinery for production line at Nandesari facility I, and the remainder funds for general corporate purposes.

Founded in 1989, Sudeep Pharma, which supplies pharmaceutical, food and nutrition, and specialty ingredients, has longstanding relationships with several marquee customers like Pfizer, Intas Pharmaceuticals, Mankind Pharma, Merck Group, Alembic Pharmaceutical, Aurobindo Pharma, Cadila Pharmaceutical, IMCD Asia, Micro Labs, and Danone SA.

ICICI Securities, and IIFL Capital Services are the merchant bankers managing the Sudeep Pharma IPO.