Supriya Lifescience makes strong market debut; stock closes 43% higher

Supriya Lifescience made a strong debut on the bourses on Tuesday. The stock got listed at Rs 425 - a gain of 55 per cent above its issue price. The stock gave up some of its listing gains and ended the session at Rs 390 - a 42.5 per cent premium to its issue price. After listing, the company commands a market capitalisation of Rs 3,141 crore.

The initial public offering (IPO) of Supriya Lifescience was subscribed 74x. The institutional portion was subscribed 33x, the wealthy investor portion 166x, and the retail investor portion 57x.

Supriya Lifescience had priced its IPO between Rs 265 and Rs 274 per share. The Rs 700-crore IPO comprised a fresh issue of Rs 200 crore and an offer for sale of Rs 500 crore. The company's promoter Satish Waman Wagh divested shares worth Rs 500 crore through the IPO.

ICICI Securities and Axis Capital were the book-running lead managers. The company plans to utilise the proceeds of the fresh issue for capital expenditure and repayment of borrowings. Supriya Lifescience is a manufacturer of active pharmaceutical (pharma) ingredients (APIs).

The company offers 38 APIs focused on diverse therapeutic segments, such as anaesthetic, vitamin, anti-asthmatic, and anti-allergic.

It has been the largest exporter of chlorpheniramine maleate and ketamine hydrochloride from India, contributing to 45-50 per cent and 60-65 per cent, respectively, of the API exports from India between 2016-17 and 2020-21 (FY21).

The company was among the largest exporters of salbutamol sulphate in India, contributing to 31 per cent of the API exports from India in FY21, in terms of volumes.

The company has exported its products to 86 countries across Asia, Europe, Latin America, and North America. The company's customers include global pharma companies like Syntec do Brasil, Akums Drugs & Pharmaceuticals, and Mankind Pharma.

Its business operations are supported by its manufacturing facility located in Lote Parshuram, Maharashtra. In FY21, the company posted a profit after tax (PAT) of Rs 123.8 crore. From April-September, the company posted a PAT of Rs 66 crore.