Sudeep Pharma’s IPO received strong investor demand, with the issue being heavily oversubscribed. The company manufactures food-grade mineral ingredients and is expanding into battery materials for electric vehicles.
The Sudeep Pharma IPO is getting a strong response from investors, with the issue subscribed 5.09 times by the third day. The public issue, which opened on November 21, will close on November 25, giving investors one last day to decide. The IPO allotment will be announced tomorrow.
Price Band & Who Gets What
The company has set the price band at Rs 563–Rs 593 per share.
Here’s how the issue is divided:
- 50% for qualified institutional buyers (QIBs)
- 15% for non-institutional investors (NIIs)
- 35% for retail investors
Allotment results will be out on November 26, refunds will begin on November 27, and shares will list on the BSE and NSE on November 28.
What the Company Does
Sudeep Pharma, based in Gujarat, is known for manufacturing food-grade iron phosphate, a key ingredient in infant nutrition, clinical nutrition, and packaged foods. The company runs six plants with a combined capacity of 50,000 MT, producing minerals like calcium, iron, magnesium, zinc, potassium and sodium used by major global clients.
GMP Indicates Positive Buzz
The grey market premium (GMP) for the IPO has risen to Rs 86 today. At the upper price band, this hints at a possible listing around Rs 679, which is roughly 14.5% higher than the issue price.
Over the last eight sessions, the GMP has moved from Rs 0 to Rs 130, showing strong sentiment in the unlisted market.
How Much Is the IPO Subscribed?
By 5 pm, the company had received bids for 5.37 crore shares, against 1.05 crore shares on offer.
Here’s the segment-wise subscription:
- Retail investors: 4.96x
- NIIs: 12x
- QIBs: 13%
For context, the IPO was subscribed 1.42x on Day 1 and picked up sharply over the next two days.
Should You Apply? What Analysts Say
Brokerages share mixed but largely positive views—especially for long-term investors.
Anand Rathi – Subscribe for the Long Term
The firm notes the valuation at the upper band stands at 48.3x FY25 P/E, but highlights Sudeep Pharma’s future-ready moves. The company is setting up a plant to make battery-grade iron phosphate, which is used in LFP batteries for electric vehicles and energy storage.
Sudeep Pharma is also strengthening its presence in regulated markets like the US and Europe, backed by USFDA-approved units.
Swastika Investmart – Good Company, Expensive Valuation
Swastika says the business has strong financials, high margins and a solid FY25 RONW of 27.88%, but calls the issue “aggressively priced.”
They caution that investors may not see big listing gains, but aggressive buyers willing to hold 2–5 years can consider applying.
Geojit – Subscribe for Medium to Long Term
Geojit believes the IPO is fairly valued at a P/E of 48x. It points to the company’s strong operations, European acquisition, and expansion into the fast-growing battery materials segment as long-term positives.
IPO Details & Use of Funds
The IPO consists of:
- A fresh issue worth Rs 95 crore, and
- An offer for sale (OFS) of Rs 800 crore by promoters.
The company will use Rs 75.81 crore from the fresh issue to buy machinery for its Nandesari facility in Gujarat, while the remaining funds will go toward general corporate purposes.