After strong IPO, Supriya Lifescience trading at 47% premium in grey market. Check out share allotment, listing date

Supriya Lifescience IPO

After strong demand for its initial public offering, Supriya Lifescience is trading at a 47% premium in the grey market, as per data from IPO Watch.

The issue of the active pharmaceutical ingredients (APIs) supplier was subscribed 71.51 times, with retail investors bidding 56 times the portion reserved for them. Non-institutional investors' quota was booked 161 times, while the qualified institutional investors' portion was subscribed 31.8 times.

Read all IPO-related news here

Incorporated in 2008, Supriya had 38 APIs as of October focused on segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti-allergic. It is the largest exporter of chlorpheniramine maleate and ketamine hydrochloride making up 45-50% and 60-65%, respectively, of API shipments from India between FY17 and FY21.

The global pharmaceutical market grew at a compound annual rate of around 5% during 2014-2020, and is expected to sustain this growth over the next five years to reach $1,585-1,625 billion in 2025 led by technological advances, rise in ageing population and sedentary lifestyles.

Supriya has a healthy balance sheet with a debt/equity ratio of 0.2 as of the end of September.

Check out all the Omicron updates here

"At the upper end of its price band, Supriya is available at a price/earnings ratio of 16.7 (FY22E annualised) which appears to be reasonably priced compared to its peers," Geojit Financial Services had said.

The brokerage had assigned a “subscribe” rating for the issue on a short to long-term basis considering strong financial performance, improving margins, export exposure, capacity expansions and increased penetration in regulated markets.

Nirmal Bang, Marwadi Shares, Angel One, Choice Broking and BP Wealth also had a subscribe rating on the issue.

Check out all the live market action here

The Rs 700 crore IPO consists of a Rs 200 crore fresh issue and a Rs 500 crore offer for sale. The fresh issue money will be used for working capital requirements and repaying of debt.

Supriya will finalise the basis of share allotment on December 23, and unsuccessful bidders will get refunds on December 24. Successful investors will get shares in their demat accounts on December 27. The stock is likely to debut on the BSE and National Stock Exchange on December 28.