Supriya Lifescience IPO: Issue Trading on Strong GMP, Delivery Expected December 26

Supriya Lifescience IPO: Issue was subscribed 71.51 times between 16-20 December

Supriya Lifescience IPO: Active pharmaceutical ingredients maker Supriya Lifescience is expected to hit the stock market on December 28 with a premium of around 50 per cent. This will be the 64th list in the stock market in 2021. Experts cite attractive valuations, a strong financial track record with the highest export earnings, the prospect of growing growth in the pharma space and good return ratios as reasons for this great list.

Supriya Lifescience’s initial public offering received an overwhelming response from investors as the issue was subscribed 71.51 times between December 16-20.

The reserve quota of non-institutional investors has subscribed 161.22 times, followed by the share of retail investors 56.01 times. Eligible institutional buyers also showed keen interest in the public issue as the reserve portion for them was subscribed 31.83 times.

The company has raised Rs 700 crore through its public issue, including a new issue of Rs 200 crore and a sale offer of Rs 500 crore from promoter Satish Waman Wagh.

Piper Serica founder and fund manager Abhay Agarwal said, “We expect a strong listing for Supriya Lifescience because it was a good price offer. We expect 50 percent or more listing premium. Also yes, it is still a small cap company.”

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Swapnil Shah, head of BP Wealth Research, also hopes to list Supriya Life at a 45-50 per cent premium.

“The technical expertise of the promoters in this area has enabled the company to diversify its production portfolio and establish a strong position in the domestic and international markets,” said Shah.

“If the issue opens with a 50 percent listing profit, it will be valued at 24 times P / E (based on FY21 earnings), which we still find interesting,” he added.

According to IPO Watch and IPO Central, shares of Supriya Lifescience were available at Rs 414 to Rs 424 per share, which was a huge premium of Rs 51 to 55 per cent or Rs 140 to Rs 150 as compared to the issue price of Rs 274 per share. Gray market.

The company posted a remarkable increase in revenue with a profit of Rs 123.83 crore, up 69 per cent in FY21. At the same time, revenue increased by about 24 per cent to Rs 385.36 crore. It earned Rs 65.95 crore on revenue of Rs 224.8 crore in the six-month period ended September 2021.

Sonam Srivastava, founder, Wright Research, said, “Supriya Life Gray Market has indicated a listing gain of around 50 per cent on a premium basis. It is an attractive stock in the pharma sector.”

“Its revenue and profitability have been growing well over the last few years, which is why it has received such a good response in the IPO market. The Indian pharma sector is now starting to gain momentum,” he added.

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