Shares of Supriya Lifescience started trading on the Indian stock exchanges on Tuesday by listing at a premium of over 53% at ₹421 per share on the NSE as compared to its issue price of ₹274 apiece. On the BSE, the stock made its debut at ₹425 per share.
“In the last 3-5 years, the API and specialty chemical industry have been darling for investors, and we believe that this trend will continue for several years. As a result of the decent participation from investors, the IPO debuted at a premium of 53%. In the long run, investors should hold the stock while those who applied for listing gains can keep a stop loss of ₹380 on a closing basis. New investors can also look for buying opportunities in dips,” said Santosh Meena, Head of Research, Swastika Investmart Ltd.
The three-day initial public offering (IPO) of Supriya Lifescience Limited was subscribed 71.51 times on the last day of share sale that concluded on December 20. The issue was fully subscribed within a few hours on first day of subscription that opened on December 16 on the back of a strong response from retail investors.
The initial share sale had a fresh issue of up to ₹200 crore and an offer for sale (OFS) of up to ₹500 crore. It had a price range of ₹265-274 per share. The company had raised ₹315 crore from anchor investors ahead of its IPO.
The company aims to use the proceeds from the fresh issue for funding capital expenditure requirements, debt repayment, and general corporate purposes.
Supriya Lifescience is one of the key Indian manufacturers and suppliers of active pharmaceutical ingredients, with a focus on research and development. As of October 31, 2021, the company had product offerings of 38 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti-allergic.
Supriya has been the largest exporter of Chlorpheniramine Maleate and Ketamine Hydrochloride from India, contributing to 45-50% and 60-65%, respectively, of the API exports from India, between FY17 and FY21. SLL is among the largest exporters of Salbutamol Sulphate in India contributing to 31% of the API exports from India in FY21 in volume terms, brokerage house ICICI Securities had highlighted in its IPO report.
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