Sudeep Pharma IPO: Key Details and Insights
Sudeep Pharma's initial public offering (IPO) has officially opened today, with plans to raise a substantial ₹895 crore. The share price is set between ₹563 and ₹593, which attracts various types of investors. This IPO comprises both new shares and an offer for sale (OFS), indicating the company's approach to bolster its capital while providing existing shareholders a chance to liquidate their holdings.
The grey market, often an indicator of investor sentiment, currently reflects a premium of ₹130 for Sudeep Pharma shares. This suggests that there is notable interest in the company, despite the cautious start, as the IPO was subscribed 0.02 times by 10:03 AM on the first day of bidding. The retail portion was booked at 0.03 times, while the non-institutional investor (NII) segment saw a subscription of 0.04 times.
Potential investors should note that Sudeep Pharma is strategically positioned within the rapidly expanding food and nutritional ingredients market, projected to grow from a valuation of $22 billion in 2024 to $32 billion by 2029. The company operates with a technology-driven manufacturing ecosystem and maintains a diverse portfolio of over 100 products, catering to the evolving needs of the pharmaceutical and nutritional sectors.
Experts recommend considering this IPO for long-term investment. Swastika Investmart has highlighted Sudeep Pharma's impressive financial performance, with rising revenues and high EBITDA margins. The company's return on net worth (RONW) for FY25 stands at a commendable 27.88%, which indicates a solid operational foundation.
However, it's essential to approach this investment with a longer horizon. The valuation appears aggressive at a price-to-earnings (P/E) ratio of 45–48x, fully reflecting the company's current profitability. Investors looking for immediate gains may find this IPO less attractive, as the steep valuation leaves minimal room for short-term price increases.
The allotment date for shares is expected to be finalized on 26 November 2025, with the listing likely to occur on 28 November 2025. Investors interested in participating in this IPO should consult with certified experts to make informed decisions. Overall, Sudeep Pharma presents a compelling opportunity for those willing to invest in the growth of India's pharmaceutical and nutritional sectors.
