Sudeep Pharma shares debut at Rs 730, premium of 23.10% from issue price

Kolkata: The shares of Sudeep Pharma debuted on Nov 28 at Rs 730, which indiactes a premium of 23.10% in NSE. The shares listed at Rs 733.95 on BSE -- a premium of 23.77%. Both were above market expectations as indicated by the GMP.  The GMP indicated a listing price of about Rs 714.

Sudeep Pharma IPO had a GMP surge on Nov 27. According to investorgain, it stood at Rs 121 in early morning of Nov 28. While it stood at Rs 90 in early morning of Nov 27, a day before the listing date, it surged to Rs 121 late in the night. On the morning of Nov 28, a few hours before the stock is to debut on BSE and NSE, investor interest rose again and the GMP reached Rs 121, which signaled a listing premium of 20.40% over the issue price of Rs 593. However, GMP is only an unofficial indicator which is volatile and cannot guarantee anything -- gain or loss on listing.

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Sudeep Pharma is a strong player in the pharmaceutical excipient market. The company is based in Gujarat and has been catering to a number of companies in India and the world. Sudeep Pharma manufactures pharmaceutical excipients, food-grade minerals and specialty nutrition ingredients and exports on products to customers in more than 100 countries. The list of its clients is impressive with names such as Pfizer Inc., Mankind Pharma, Merck Group, Aurobindo Pharma, Cadila Pharmaceutical, IMCD Asia Pte Ltd and Danone SA. Most of the clients are long-standing, indicating they have faith in Sudeep Pharma.

Sudeep Pharma IPO triggered remarkable interest among the investors, both retail, HNIs and institutional. The public issue was subscribed as much as 93.71 times overall -- 15.65 times in the retail category, 213.08 times in QIB (Ex Anchor), and 116.72 times in the NII category. The allotment of the issue was completed on Nov 6. The point to be noted is that QIBs or Qualified Institutional Buyers are big investors such as mutual funds, banks and insurance companies. They have financial and analytical skills and capital to invest and big participation from these category of investors indicate market confidence in the company.

The company had a successful anchor round too. It managed to raise Rs 268.5 crore from anchor investors. Among them were AMCs such as SBI Mutual Fund (MF), HDFC MF, ICICI Prudential MF, Nippon India MF, WhiteOak Capital MF, Aditya Birla Sun Life MF, Motilal Oswal MF, Quant MF, Bandhan MF, UTI MF, Edelweiss MF, Tata AIA Life Insurance and SBI Life Insurance.