Sudeep Pharma, a Vadodara-based manufacturer of pharmaceutical excipients, specialty ingredients, and nutrition minerals, is set to launch its much-anticipated initial public offering (IPO) on November 21, 2025. As investor interest intensifies, its grey-market premium (GMP) has shot up sharply, fueling speculation on a premium listing.
Strong Grey-Market Sentiment
As of the morning of November 20, the GMP for Sudeep Pharma stood at ₹130, according to InvestorGain. When added to the upper end of the IPO price band (₹593), this implies a potential listing around ₹723 per share, suggesting an expected gain of nearly 22%. It’s important to note that GMP reflects speculative demand and doesn’t guarantee listing price.
Key IPO Details
- Issue Size: The IPO is valued at ₹895 crore, comprising a fresh issue of ₹95 crore and an Offer for Sale (OFS) of 1.34 crore shares by promoters.
- Price Band: Sudeep Pharma has set its IPO price range as ₹563–₹593 per equity share.
- Lot Size: Each retail lot consists of 25 shares.
- Application Timeline: The IPO begins subscription on November 21 and closes on November 25.
- Allotment & Listing:
- Allotment is expected by November 26.
- Refunds and demat credit may begin on November 27, with a tentative listing date on November 28.
Use of Proceeds
Sudeep Pharma plans to use a big portion of the fresh issue funds — roughly ₹75.8 crore — for capital expenditure, specifically to buy machinery for its Nandesari production facility in Gujarat. The rest will be used for general corporate purposes.
Business Profile & Financials
- History & Operations: Founded in 1989, Sudeep Pharma manufactures more than 200 products, including mineral salts (like calcium, iron, magnesium, zinc) and excipients, serving clients in the pharma, nutrition, and food industries.
- Manufacturing Footprint: The company has three manufacturing plants in Vadodara, Gujarat, with a combined production capacity of over 65,500 metric tonnes.
- Global Reach: It serves more than 1,100 customers across more than 100 countries, with marquee clients including Pfizer, Intas, Merck, Cadila, Micro Labs, and Danone.
- Financial Performance:
- For FY 2025, the company reported a total income of ₹511.33 crore (up from ₹465.38 crore in FY 2024).
- Its profit after tax (PAT) rose to ₹138.69 crore in FY 2025, from ₹133.15 crore in FY 2024.
Institutional Details
- Promoter Shareholding: The Bhayani family holds approximately 89.37% of the company pre-IPO.
- Lead Managers: The IPO is being managed by ICICI Securities and IIFL Capital Services, with MUFG Intime India as the registrar.
Risks & Considerations
- Customer Concentration: A significant portion of revenue comes from a limited number of clients.
- Regulatory Risk: Its manufacturing facilities are subject to regular audits by regulatory bodies and clients — any quality issue could hurt its reputation.
- Execution Risk for CapEx: The success of the planned expansion depends on efficient use of IPO funds and scaling up operations at the Nandesari facility.
Conclusion
With a booming grey-market premium and strong demand expectations, Sudeep Pharma’s IPO is shaping up to be one of the most watched listings in the specialty ingredients space. Backed by solid financials, a diverse global client base, and a focused growth plan, the company is offering a compelling value proposition. Yet, as with any IPO, investing comes with risk — from execution challenges to customer concentration — and prospective investors should carefully weigh the trade-offs.
