The initial public offering of Supriya Lifescience, an active pharmaceutical ingredients manufacturer, has subscribed 2.33 times on December 16, the first day of bidding. It received bids for 3.38 crore lakh equity shares against the offer size of 1.45 crore equity shares.
Retail investors bought 11.84 times shares of the portion set aside for them, and the allotted quota of non-institutional investors was subscribed 66 percent. Qualified institutional buyers are yet to put in their bids for the offer.
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Of the total offer size, 75 percent is reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remaining 10 percent for retail investors.
The public issue will fetch Supriya Lifescience Rs 700 crore, of which Rs 315 crore has already been raised from anchor investors on December 15, at the upper price band of Rs 274 per equity share.
"Based on FY2021 numbers, the IPO is priced at an EV/EBITDA (enterprise value/earnings before interest, tax, depreciation and amortisation) of 11.2 times and price to earnings of 16.2 times at the upper price band of the IPO," said Angel One.
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Supriya Lifescience focuses on research and development and has niche product offerings of 38 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and antiallergic. The company's 77.5 percent of revenue comes from the export markets, and its key markets are USA, Europe, China and India.
"We believe that the company's new manufacturing unit and product launch will be growth drivers in the future. Hence, we are assigning a “subscribe” recommendation to the Supriya Lifescience IPO," said Angel One.
Also read - Supriya Lifescience IPO opens: 10 key things to know before subscribing to the public issue
The price band for the offer, which closes on December 20, is at Rs 265-274 per equity share.
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