Author: Aditya Pareek | EQMint | Market News
The Sudeep Pharma IPO has entered Day 2 with strong demand from investors, continuing the momentum built on its opening day. After getting fully subscribed on Day 1, the issue is now booked 2.42 times, reflecting heightened interest across institutional and retail categories. With a price band of ₹563–₹593 per share, a consistently rising grey market premium (GMP) of ₹121, and an estimated 20% listing upside, the IPO has quickly become one of the most tracked public issues of the month. As investors evaluate subscription trends, GMP signals, brokerage reviews and long-term growth potential, the central question emerges — should one apply for the Sudeep Pharma IPO before the window closes on November 25?
Sudeep Pharma was fully subscribed on Day 1, with an overall subscription of 1.42x on the first day of bidding.
IPO Structure and Price Band
The price band for the IPO has been set at ₹563–₹593 per equity share. Allocation is divided as follows:
- 50% reserved for Qualified Institutional Buyers (QIBs)
- 15% for Non-Institutional Investors (NIIs)
- 35% for Retail investors
The company has received bids for 1,50,09,425 shares against 1,05,64,926 shares on offer as of 5:00 PM, according to BSE data.
Breakdown of Day-2 subscription momentum:
| Investor Category | Subscription |
|---|---|
| QIBs | 3.00x |
| Retail | 1.50x |
| NIIs | 0.48x |
| Overall | 2.42x (so far) |
Grey Market Premium (GMP) Trends
The Sudeep Pharma IPO GMP today is ₹121. At the upper end of the price band (₹593), the current GMP suggests an estimated listing price of ₹714, implying a potential 20.40% premium.
Analysts note the GMP has shown an upward trajectory over the past eight sessions, signaling strong expectations for a robust listing. GMP has ranged from ₹0 to ₹130 during this period.
Company Profile
Headquartered in Gujarat, Sudeep Pharma is one of India’s leading producers of food-grade iron phosphate used in:
- Infant nutrition
- Clinical nutrition
- Food & beverage formulations
The company operates six manufacturing facilities with a collective capacity of 50,000 MT, producing mineral-based ingredients including calcium, iron, zinc, magnesium, sodium and potassium.
Brokerage Opinions — Apply or Avoid?
🔹 Swastika Investmart – Cautious View
Swastika reported that Sudeep Pharma shows:
- Strong revenue growth
- Rising EBITDA margins
- Solid FY25 Return on Net Worth (RONW): 27.88%
However, the brokerage pointed out that the IPO appears “aggressively priced”, trading at a P/E of 45–48x, leaving limited scope for short-term listing gains.
Recommendation: Apply only with a 2–5 year holding horizon.
🔹 Geojit Investments – Positive View
Geojit noted that the valuation appears reasonable, considering:
- Strong operational performance
- Acquisition of NSS, expanding presence in the European infant nutrition market
- Planned entry into battery-grade minerals
Recommendation: SUBSCRIBE (Medium- to long-term investors)
IPO Details
- Total Issue Size: ₹800 crore
- Fresh Issue: ₹95 crore
- Offer For Sale (OFS): ~1.35 crore shares by promoters
- Fresh issue proceeds:
- ₹75.81 crore for capex related to machinery purchase for the Nandesari Facility 1 (Gujarat)
- Balance toward general corporate purposes
ICICI Securities and IIFL Capital Services are the book-running lead managers, while MUFG Intime India Pvt. Ltd. is the registrar.
Important Dates
| Event | Date |
|---|---|
| IPO Close | Nov 25 (Tue) |
| Allotment | Nov 26 (Wed) |
| Refunds | Nov 27 (Thu) |
| Shares to Demat | Nov 27 (Thu) |
| Listing on BSE & NSE | Nov 28 (Fri) |
Conclusion — Apply or Not?
With strong subscription momentum, rising GMP, and back-to-back positive brokerage reviews for long-term growth, Sudeep Pharma is shaping up to be one of the more closely watched IPOs of November.
However, the valuation remains on the higher side, and short-term investors should be cautious, as listing gains — while likely — are not guaranteed.
Best suited for:
🔹 Medium- to long-term investors
🔹 Those bullish on nutrition ingredients, pharma excipients and mineral-based formulation demand
For more such information visit EQMint
Disclaimer: Investing in IPOs involves market risks. Past financial performance does not guarantee future results. Readers should conduct their own research or consult a SEBI-registered investment advisor before applying for the Sudeep Pharma IPO.
