Sudeep Pharma IPO sees solid anchor demand, positive GMP; worth your money?

Sudeep Pharma IPO opens for subscription: Check price band, lot size, GMP, reviews, allotment date, listing date, and other key details here

Sudeep Pharma IPO: Grey market trends signal a positive sentiment for Sudeep Pharma’s initial public offering (IPO), which opens for subscription today. The specialty chemicals and pharma-ingredients manufacturer aims to raise ₹895 crore through its maiden share sale.  According to market observers tracking unofficial trading, unlisted shares of Sudeep Pharma were changing hands around ₹715 apiece, reflecting a premium of ₹122, or 20.6 per cent over the IPO’s upper price band of ₹593 — pointing to favourable investor interest.

Anchor investors show strong appetite

Sudeep Pharma has already garnered ₹268.5 crore from anchor investors on Thursday, November 20, allotting 45,27,823 shares at ₹593 each, as per a circular on the BSE website.

 

 

The anchor book witnessed participation from a wide spectrum of leading domestic institutions, including SBI Mutual Fund, 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, along with insurers Tata AIA Life Insurance and SBI Life Insurance.  ALSO READ | Sudeep Pharma IPO: Key strengths, risks before you invest

Brokerages recommend long-term subscription

Market analysts remain broadly positive on Sudeep Pharma’s long-term prospects, though some caution on valuations.

 

Analysts at Anand Rathi Research have advised investors to subscribe to the IPO with a long-term perspective, while noting that the issue “appears fully priced.” At the upper end of the band, the company is valued at 48.3x its FY25 estimated earnings, translating into a post-issue market capitalisation of ₹6,697.9 crore.

 

The brokerage highlighted Sudeep Pharma’s expansion plans, including the establishment of a wholly owned subsidiary, SAMPL, to leverage its mineral chemistry expertise for advanced materials. This includes a new PCAM facility, producing battery-grade iron phosphate for LFP batteries used in electric vehicles and energy storage systems. Analysts also pointed to the company’s strategy to deepen its presence in regulated markets such as the US and Europe by leveraging USFDA-approved facilities, boosting exports, and moving toward direct market access with local warehousing and sales teams. “Given these factors, the IPO appears fully priced, and we assign a ‘Subscribe – Long Term’ rating,” Anand Rathi said in a research note.

 

Swastika Investmart suggested that only aggressive investors with a 2–5 year horizon consider the issue. The brokerage highlighted the company’s strong financials, including rising revenues, high Ebitda margins, and an impressive FY25 RONW of 27.88 per cent, along with its position as a preferred supplier of critical pharma-grade ingredients to marquee global clients. However, Swastika cautioned that the valuation, at a P/E of 45–48x, is “aggressively priced,” leaving limited scope for immediate listing gains.

Sudeep Pharma IPO details

The public offer comprises a fresh issue of 1.6 million equity shares worth ₹95 crore and an Offer for Sale (OFS) of up to 13.5 million shares worth ₹800 crore by promoters. The price band is set at ₹563–₹593 per share, with a lot size of 25 shares. A retail investor would require ₹14,825 for a single lot and ₹1,92,725 for the maximum permissible 13 lots (325 shares).

 

The three-day subscription window closes on Tuesday, November 25, 2025, with the basis of allotment expected on Wednesday, November 26. Sudeep Pharma’s shares are tentatively scheduled to list on the BSE and NSE on Friday, November 28.

 

Sudeep Pharma will not receive proceeds from the OFS. “Each of the Selling Shareholders shall be entitled to its respective portion of the proceeds of the Offer for Sale after deducting its proportion of the Offer-related expenses and relevant taxes thereon,” the company noted in its red herring prospectus. Proceeds from the fresh issue will be deployed toward capital expenditure, including machinery for the Nandesari facility, and general corporate purposes.

 

ICICI Securities and IIFL Capital Services are the book-running lead managers for the issue, while MUFG Intime India Private Limited (formerly Link Intime India Private Limited) is the registrar.