Tag: Supriya Lifescience

Supriya Lifescience IPO share allotment today, here’s how to check application status

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Supriya Lifescience, whose initial share closed last week, will list on the bourses on December 28. The share allotment, however, is expected to be finalised today and investors can check the status on the issue’s registrar Link Intime as well as on BSE.

The status will only appear if the details are entered correctly. In the case of non-allotment, the blocked amount will be refunded to the investor’s bank account.

Here’s how you can check the allotment status:

Through the website of registrar – Linkintime

1) Visit the website: https://www.linkintime.co.in/IPO/public-issues.html

2) Select IPO name from the dropdown

3) Enter Application Number or DP ID/Client ID or PAN

4) In the case of application number, select application type (ASBA or NON-ASBA) and ‘Enter Application Number’. In the case of DPID/Client ID, select Depository “NSDL or CDSL” and enter “DP ID/Client ID”.

5) Enter ‘Captcha’ and submit

On BSE:

1) Visit the website: https://www.bseindia.com/investors/appli_check.aspx.

2) Select ‘Equity’ and then from the dropdown, select issue name

3) Enter your Application Number and PAN Card number

4) Click on the “Search” button

Supriya Lifescience is a key manufacturer and supplier of active pharma ingredients or APIs. API is a substance used in the finished pharma product. The company has 38 APIs focused on diverse segments like an antihistamine, analgesic, anaesthetic, anti-asthmatic, and anti-allergic. It has a manufacturing facility in Maharashtra.

The IPO that ran between December 16 to December 20 had fixed the price band at Rs 265-274 per share. It had received a robust response from the investors and was oversubscribed over 71 times on the final day of bidding. The portion reserved for retail investors has been subscribed 55 times, while that of non-institutional investors’ over 160 times, as per the subscription data available on the exchanges. Qualified institutional buyers had subscribed to the issue over 32 times.

At the upper price band of Rs 274, the company is available at a P/E ratio of 16.7x (FY22E annualised), which appears to be reasonably priced compared to peers, a report by Geojit Financial Services said.

The brokerage had therefore given a subscribe rating to the IPO on a short-to-long term basis, considering its “strong financial performance, both topline and bottomline, improving margins, export exposure, capacity expansions, and increased penetration to regulated markets.”

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Supriya Lifescience IPO subscribed 72 times on final day

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Supriya Lifescience’s IPO to raise Rs 700 crore concluded with a subscription of nearly 72 times on December 20, the third and final day of the bidding process. The IPO of Mumbai-based Supriya Lifescience comprised fresh issuance of equity worth Rs 200 crore, and an offer for sale (OFS) of shares worth Rs 500 crore by promoters and existing shareholders. Supriya Lifescience is a manufacturer and marketer of active pharmaceutical ingredients (APIs).

At the end of the day, the Supriya Lifescience IPO received bids for 103.9 crore shares as against the nearly 1.5 crore shares on offer, a subscription of 71.5 times.

ALSO READ: Should you subscribe to Supriya Lifescience IPO?

The portion reserved for qualified institutional buyers (QIBs) was subscribed 31.8 times the shares on offer, and that for non-institutional investors (NIIs) 161.2 times. The retail investor category was booked 56 times.

Out of the total issue, 75 percent was reserved for QIBs, 10 percent for retail investors and 15 percent for NIIs.

Potential investors could bid for Supriya Lifescience shares in a price range of Rs 265-274 in multiples of 54 under the IPO. At the upper end of the range, one lot of Supriya Lifescience shares is valued at Rs 14,796.

ALSO READ: How to read key IPO numbers, spot red flags in a DRHP

Ahead of the launch of the IPO, Supriya Lifescience commanded a premium of Rs 250 in the grey market, dealers said. Supriya Lifescience grey market premium (GMP) had risen to as high as Rs 400 in the past few days, they said.

Supriya Lifescience shares are likely to be listed on bourses BSE and NSE on December 28.

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Supriya Lifescience IPO hits Dalal Street; here’s what GMP suggests

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Supriya Lifescience’s IPO worth Rs 700 crore opened for subscription on Thursday. Ahead of the IPO, Supriya Lifescience, which is a manufacturer and marketer of APIs, commanded a premium in the grey market – an unofficial market for unlisted securities. Dealers said Supriya Lifescience’s grey market premium (GMP) stood at Rs 250, down from Rs 400 days ago.

Supriya Lifescience’s IPO is a combination of fresh issuance worth Rs 200 crore, and an offer for sale (OFS) worth Rs 500 crore by promoters and shareholders. The initial share sale comes at a time when most IPOs have been received with a robust response from investors in recent times.

The bidding process for the Supriya Lifesciences IPO will end on December 20.

Supriya Lifescience GMP

Source: IPO Watch

ALSO READ: What grey market really is

“Given the company’s growth, attractive pricing and the small size of the issue, we may see a very strong interest from participants,” said Abhay Doshi, Co-Founder of Unlisted Arena, a portal that tracks grey markets and deals in unlisted securities.

“On the operational front, there is visible growth in topline and bottomline…
If we annualise the company’s earnings in the first six months of FY22, the asking P/E comes to be around 16.70 times, which seems to be reasonable,” said Doshi.

ALSO READ: How to read key IPO numbers, spot red flags in a DRHP

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Supriya Lifescience IPO opens; should you subscribe?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Supriya Lifescience’s initial public offering (IPO) to raise Rs 700 crore opened for subscription on Thursday. The IPO of Supriya Lifescience – a manufacturer and marketer of active pharmaceutical ingredients – is a combination of fresh issuance of shares worth Rs 200 crore, and an offer for sale (OFS) of equity worth Rs 500 crore by promoters and shareholders.

Supriya Lifescience shares are available for bidding in a price band of Rs 265-274 in multiples of 54 under the IPO. At the upper end of the price band, one lot of Supriya Lifescience shares is worth Rs 14,796.

The IPO will close for subscription on December 20. Supriya Lifescience shares are likely to be listed on stock exchanges BSE and NSE on December 28.

ALSO READ: How to read key IPO numbers, spot red flags in a DRHP

Should you subscribe to the Supriya Lifescience IPO? Here’s what brokerages suggest: 

Motilal Oswal Retail Research

The brokerage has a ‘subscribe’ rating on the Supriya Lifescience IPO. Motilal Oswal Retail Research likes the company given its niche product portfolio in diverse therapeutic segments, its backward integrated business model with advanced manufacturing and R&D capabilities, its extensive global presence with strong clients’ relation, and robust financials.

Supriya Lifescience is well placed to tap the opportunity in the pharma API market given its strong pipeline focused on further diversification, the brokerage said.

“The issue is reasonably valued at 17.8 times FY21 P/E (on a post-issue basis) versus its peers (available at average P/E of 22.8 times), while it enjoys similar growth trajectory,” it added.

Angel One

The brokerage has a subscribe rating on the Supriya Lifescience IPO.

Based on the company’s FY21 numbers, the IPO is priced at an EV/EBITDA of 11.2 times and a price-to-earnings ratio of 16.2 times at the upper end of the price band, according to Angel One.

“We believe that the company’s new manufacturing unit and product launch will be growth drivers for the company in future,” Angel One added.

Anand Rathi

The brokerage recommends subscribing to the IPO for the long term.

At the upper end of the price band, Supriya Lifescience is offered
at a P/E of 17.8 times its FY21 earnings with a market capitalisation of Rs 2,205.2 crore, Anand Rathi said.

“The company has significant scale with a leadership position across and niche products. It is backward integrated and has advanced manufacturing,
research and development capabilities. The company has high profit
margins and a strong balance sheet, and reported a RoNW of 46.04 percent in FY21. However, the IPO is fully priced and demanding rich valuations,” it added.

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Supriya Lifescience IPO key risks: From COVID-19, commercialisation of products, regulations to quality control and more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Active pharmaceuticals ingredients manufacturer Supriya Lifescience is all set to launch its Rs 700 crore initial public offering (IPO) on December 16. The issue will be open for subscription in the primary market until December December 20.

The IPO of the Mumbai-based firm includes the issuance of new equity shares worth Rs 200 crore and an offer for sale (OFS) of 1.82 crore equity shares worth Rs 500 crore by founder Satish Waman Wagh. The net proceeds from the fresh issue will be used for capital expenditures, debt repayment, and other general corporate purposes.

Supriya Lifescience IPO would be the 64th initial public issue of 2021. With this issue, firms would have in all raised over 1.3 lakh crore via IPOs, which is the highest ever in the history of the Indian capital market.

Also Read: Supriya Lifescience IPO opens on Dec 16: Strengths, weaknesses, threats and opportunities analysis

The IPO of Supriya Lifescience, however, is not devoid of risks, be it manufacturing and quality control, commercialisation of products, or approvals to sell products in the global markets.

Here’s are key risk factors listed by Supriya Lifescience in its draft red herring prospectus (DRHP)

Pandemic: The COVID-19 pandemic, or any future pandemic or widespread public health emergency, could materially and adversely impact the business, financial condition, cash flows and results of operations, the firm said.

Commercialisation of products: According to the pharma ingredients company, it does not successfully develop or commercialise new products in a timely manner, or if the products do not perform as expected, its business, results of operations and financial condition may be adversely affected.

Regulatory measures: “Our business is subject to extensive regulation. If we fail to comply with regulations prescribed by governments and regulatory agencies, our business, results of operations and financial condition could be adversely affected,” Supriya Lifescience said in the DRHP.

Approvals for international markets: In the international markets in which the company sells its products, the approval process for a new product can be complex, lengthy and expensive. If it fails to obtain such approvals in a timely and cost-efficient manner, or at all, it could have a negative impact on the business prospects.

Exchange rate: Exchange rate fluctuations may adversely affect the results of operations as export sales and sales outside India and a portion of the firm’s expenditures are denominated in foreign currencies.

Quality control: Any manufacturing or quality control problems may damage Supriya Lifescience’s reputation and expose it to litigation or other liabilities, which again can adversely affect the business operations and financial condition. Any delay in production at, disruption or shutdown of any manufacturing facility, or failure to achieve optimal capacity utilisation can have an impact too.

Lender conditions: “Our lenders have imposed certain restrictive conditions on us under our financing arrangements. This may limit our ability to pursue our business and limit our flexibility in planning for or reacting to, changes in our business or industry,” according to the DRHP.

Lease agreement: The company’s manufacturing facility is located on leased premises. If these leases are terminated or not renewed on terms acceptable to it, it could have a material adverse effect on the business.

Technological challenges: Changes in technology may render Supriya Lifescience’s current technologies obsolete or require it to make substantial capital investments, the company said.

Legal proceedings: If any of the outstanding litigations are decided against Supriya Lifesciences, it may need to make provisions in financial statements that could increase expenses and current liabilities.

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Supriya Lifescience IPO: Issue price, GMP, dates and other things to know

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Supriya Lifesciences IPO opens for bidding on December 16, Thursday, in what would be the 64th initial public issue of 2021. With this issue, companies would have raised over 1.3 lakh crore via IPOs—the highest ever in the history of the Indian capital market.

Supriya Lifesciences is looking to raise over Rs 700 crore via the primary market, with a fresh issue of Rs 200 crore and an offer for sale of Rs 200 crore.

Key things to know about Supriya Lifescience IPO

Key dates: The issue opens on December 16, closes on December 20. The allotment is expected to be finalised on December 23, ASBA funds should get unblocked by December 24. Trading in Supriya Lifescience is expected to commence by December 28.

Offer details: The issue comprises a fresh issue and an offer for sale by the promoter. The fresh issue is worth Rs 200 crore and promoters are looking to offload over Rs 500 crore.

Issue price: Rs 265-274

Issue size: Rs 700 crore

Also, Read | IPO investing: How to read key numbers, spot red flags in a draft prospectus

Lot size: Over 26 crore shares with a face value of Rs 2. Investors can bid for 54 shares and in multiples thereof

Post-issue implied market cap: Rs 2,200 crore at the upper end of the price band

Shareholding pattern: Promoters own 99.26 percent of the shares before the issue, which will decrease to 67.59 post-issuing of shares. The promoter group owns 0.72 percent of the shares and will be left with 0.65 percent after listing. The company is promoted by Satish Waman Wagh.

Issue break up: 75 percent of the issue is reserved for qualified institutional buyers and 15 percent for non-institutional buyers. Retail investors can bid for 10 percent of the issue.

About the company: Supriya Lifesciences was incorporated in March 2008 and is one of the key manufactures and suppliers of active pharma ingredients or APIs, in the country. API is a substance used in the finished pharma product to have a direct effect in the diagnosis, cure, mitigation, treatment, and prevention of a disease, as defined by the World Health Organisation. It can also have a direct effect in restoring, correcting, or modifying the impact.

The company majorly focuses on the research and development of APIs. As of October 2021, it had 38 APIs focused on diverse segments like an antihistamine, anaesthetic, analgesic, anti-asthmatic, and anti-allergic. Its manufacturing facility is located in Maharashtra, divided into 4 blocks. The fourth block came into operation in May 2021.

Its business is organised into domestic and export sales. As of October 2021, its products were exported to 86 countries. It is the largest exporter of Chlorpheniramine Maleate (an antihistamine) and Ketamine Hydrochloride (anaesthetic) from India.

Also Read | Supriya Lifescience IPO to open tomorrow: Strengths, weaknesses, threats and opportunities analysis

Export sales make up an average of 70 percent of the company’s revenue. In six months period ended September 2021, export sales contributed 73.5 percent to the total revenue and domestic sales made up 26.4 percent of the revenue.

Its key customers include Mankind Pharma, Acme Generics, and Akums Drugs and Pharma.

Financials: Supriya Lifesciences reported a net profit of over Rs 123.38 crore in FY20-21, higher as compared to Rs 73.37 crore in the previous fiscal. Its revenue also jumped over Rs 396.2 crore in the period under review, as compared to Rs 327.21 crore in the previous fiscal.

For the quarter ended September 2021, it reported a net profit of Rs 65.96 crore and a revenue of Rs 230.06 crore.

Objective of issue: The company aims to invest Rs 92 crore into funding the capital expenditure requirements of the company. Over Rs 60 crore would be used for re-/pre-payment of certain borrowings. And the rest would go to the general corporate purposes.

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Grey market premium (GMP): As per data from IPO Watch, the shares of Supriya Lifesciences are commanding a premium of Rs 250 in the grey market.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow