Sudeep Pharma IPO opens Nov 21: Know key strengths, risks before you invest

Sudeep Pharma IPO: Sudeep Pharma, a manufacturer of pharmaceutical excipients, is set to launch its maiden public issue on Friday, November 21, 2025. The public issue comprises a fresh issue of 1.6 million shares aggregating to ₹95 crore, and an offer for sale (OFS) with investors divesting up to 13.5 million shares worth ₹800 crore.

 

Sudeep Pharma IPO will be offered at a price band of ₹563 to ₹593 per share. The minimum application size has been set at 25 shares per lot. The issue will remain open for subscription till Tuesday, November 25, 2025. The company’s shares are tentatively scheduled to make their D-Street debut on Friday, November 28, 2025.

 

 

MUFG Intime India is the registrar for the issue. ICICI Securities and IIFL Capital Services are the book-running lead managers. 

 

According to the red herring prospectus (RHP), the company proposes to use ₹75.81 crore from the net fresh issue proceeds for the procurement of machinery for the production line located at the Nandesari Facility. The remaining funds will be used for general corporate purposes.  Check Capillary Technologies IPO allotment Status

Here are the main risks to consider before investing in Sudeep Pharma:

Customer concentration: The company generates a significant portion of its revenue from a limited number of customers. Its top five customers contributed ₹42.57 crore or 34.08 per cent of revenue for the quarter ended June 30, 2025; ₹149.37 crore or 29.76 per cent in FY25; ₹124.5 crore or 27.11 per cent in FY24; and ₹149.2 crore or 34.8 per cent in FY23. For the three months ended June 30, 2025, the largest customer accounted for ₹182.10 million, or 14.58 per cent of revenue, while in FY25, FY24, and FY23, contributions were ₹409.22 million (8.15 per cent), ₹419.88 million (9.14 per cent), and ₹495.37 million (11.55 per cent), respectively. Loss of these key customers or a drop in their business could negatively impact the company’s revenues, margins, and overall financial performance.

 

Segment concentration: According to the RHP, Sudeep Pharma generates a major share of its revenue from the pharmaceutical, food, and nutrition segment. The company derived 66.43 per cent, 65.84 per cent, 67.64 per cent, and 77.01 per cent of its revenue from operations from the pharmaceutical, food, and nutrition segment for the three months ended June 30, 2025, and FY25, FY24, and FY23, respectively.

 

Regional dependence: The company has four manufacturing facilities, out of which three are located in Vadodara, Gujarat. The company is also commissioning an additional facility in Nandesari, Gujarat, further increasing its geographic concentration. Any adverse developments affecting this region could have an adverse effect on the company's operations.

 

Reliance on export markets: A significant portion of the company’s revenue comes from export sales, accounting for 58.68 per cent, 59.27 per cent, 64.43 per cent, and 68.45 per cent of revenue for the three months ended June 30, 2025, and Fiscals 2025, 2024, and 2023, respectively. Any negative developments in these markets, including the introduction of tariffs or other trade restrictions, could adversely impact the company’s business.

 

Acquisitions and strategic investments: The company recently acquired 85 per cent of NSS through its subsidiary Sudeep Pharma BV, making NSS a material subsidiary effective May 22, 2025. Future acquisitions, investments, or strategic alliances, if unsuccessful, could adversely impact the company’s business, operations, and financial condition.

Key strengths of Sudeep Pharma:

Market leadership in high-barrier segments: As per the RHP, Sudeep Pharma is a leading manufacturer of mineral-based pharmaceuticals, food, nutrition, and speciality ingredients in India, including iron phosphate and encapsulated preservatives such as sorbic acid and calcium propionate. Additionally, the company's presence in a regulated, high-barrier segment, supported by established manufacturing and compliance capabilities, positions it among the limited number of players operating at scale in this industry. 

 

Established customer base: The company caters to over 1,100 customers across the pharmaceutical, food, nutrition, and fast-moving consumer goods (FMCG) sectors, including more than 40 multinational companies (MNCs) as of June 30, 2025. The company says that 14 Fortune 500 companies are part of its customer base, with long-term associations reflected in an average 7.08-year relationship with its five largest customers. 

 

Robust R&D capabilities: Sudeep Pharma operates a dedicated research and development (R&D) facility with 41 personnel as of June 30, 2025, equipped with machinery such as fluidised bed coaters, spray dryers, tablet compression systems, and industrial barriers. It has conducted over 420 R&D projects in the last three fiscal years and three months ended June 30, 2025, resulting in the commercialisation of 127 products, including new developments and variants of existing formulations.