Supriya Lifescience beats IPO investors expectations and debuts with 55% premium

• Shares of Supriya Lifescience listed at ₹425 while the price band was fixed at ₹265-274 per share.
• The IPO was a hit among investors as it has been subscribed just 73.94 times on the last day of the bidding.
• The market capitalisation of the company stood at ₹3,420 crore.

The Mumbai-based active pharmaceutical ingredients (APIs) manufacturer, Supriya Lifescience made a strong debut on the National Stock Exchange (NSE) and BSE. The stock listed at ₹425, which is 55.11% more than the issue price band of ₹265-274 apiece.

The listing gains of Supriya Lifescience met investors expectations of 40-50% premium led by high grey market premium, positive recommendation by analysts as the company is backed by strong financials with attractive valuations.

“Supriya Lifesciences, another good company from the API segment garnered lots of investors' interest on the back of strong financials and attractive valuations. We are expecting a strong listing of this company as market sentiments have improved and the IPO witnessed strong subscription numbers. The grey market is indicating a listing gain of more than 50%,” said Aayush Agrawal, senior analyst at Swastika Investmart.

Post listing, the market capitalisation of the company stood at ₹3,420 crore, according to BSE data. The company raised ₹700 crore through the IPO, which consists of a fresh issue of ₹200 crore and an offer for sale of ₹500 crore.

The net proceeds from the fresh issue will be utilised towards capital expenditure requirements, repaying of debts, and general corporate purposes.

The shares of Supriya Lifescience were trading at ₹xx, lower by x% at 10.00 a.m., on December 28.

The grey market had also indicated a good listing as unlisted shares of Supriya Lifescience were commanding a marginal premium of ₹140 per share.

The IPO, which was open between December 16 and December 20, received strong response from investors. It was subscribed 73.94 times on the last day of the bidding.

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

Supriya Lifescience products have been exported to 86 countries and 1,296 customers in FY21. The company has API business in Europe, Latin America, Asia, and North America.

SEE ALSO: CMS Info Systems IPO: Here’s how you can check the allotment status
India’s year of the unicorn and its many high point