Sudeep Pharma, a Vadodara-based manufacturer of pharmaceutical excipients and specialty ingredients, launched its initial public offering (IPO) today, November 21, 2025. The IPO aims to raise ₹895 crore through a combination of a fresh issue of ₹95 crore and an offer for sale (OFS) of ₹800 crore. The issue will remain open for subscription until November 25, 2025.

Price Band and Lot Size

The company has set a price band of ₹563 to ₹593 per equity share. Investors can bid for a minimum lot size of 25 shares, requiring a minimum investment of ₹14,825 at the upper price band. Retail investors have access to 35% of the issue.

Subscription Status and GMP

By 11:10 AM on the first day of bidding, the IPO was subscribed 35%. The retail portion was booked 45%, while the Non-Institutional Investors (NII) portion was subscribed 55%.

The Grey Market Premium (GMP) for Sudeep Pharma IPO is ₹122, indicating positive investor sentiment. This suggests an estimated listing price of ₹715 per share, a 20.57% increase over the IPO price of ₹593. Some market observers reported a GMP of ₹130, which translates to an estimated listing price of ₹723.

Objective of the Issue

Sudeep Pharma plans to utilize the net proceeds from the fresh issue for capital expenditure, primarily to procure machinery for its production line at Nandesari Facility I. The remaining funds will be used for general corporate purposes.

Financial Performance

Sudeep Pharma has demonstrated consistent financial growth in recent years. * The company's revenue from operations increased from ₹459.23 crore in FY24 to ₹502 crore in FY25, representing a growth of 9.31%. * Net profit increased by 4.13% from ₹133.19 crore in FY24 to ₹138.69 crore in FY25. * For the first three months of FY26, the company's profit was ₹30.81 crore on a revenue of ₹124.92 crore. * The company reports a Return on Net Worth (RoNW) of 27.88% and a debt-to-equity ratio of 0.20.

Allotment and Listing

The allotment of shares is expected to be finalized on November 26, 2025. Successful bidders can expect shares to be credited to their Demat accounts by November 27, 2025, with refunds for unsuccessful applicants processed on the same day. Sudeep Pharma is proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on November 28, 2025.

Anchor Investors

Prior to the IPO opening, Sudeep Pharma garnered ₹268.5 crore from anchor investors, allotting 4,527,823 shares at ₹593 each. Major mutual funds, including SBI, ICICI Prudential, HDFC, Axis, Nippon, Aditya Birla, and Bandhan, participated in the anchor investment.

Concerns

The IPO is considered aggressively priced at a P/E of 45–48x, which may limit short-term listing gains.

Expert Opinion

Swastika Investmart suggests that the IPO is suitable for long-term investors (2-5 years) seeking exposure to specialty pharma ingredients. Anand Rathi recommends investors to subscribe to the issue.

About Sudeep Pharma

Founded in 1989, Sudeep Pharma is a manufacturer of pharmaceutical excipients and specialty ingredients, supplying over 200 products across the pharma, food, and nutrition sectors. The company operates six manufacturing facilities with a combined capacity of 50,000 MT and serves several global blue-chip clients. Sudeep Pharma holds global certifications such as US FDA, WHO-GMP, and EXCiPACT.