Sudeep Pharma lists at premium

Sudeep Pharma made a strong debut on the bourses today, with its shares listing at Rs.733.95, a healthy premium over the IPO price of Rs.593, reflecting robust investor appetite for niche pharmaceutical ingredient manufacturers. The issue saw heavy subscription across categories, with overall subscription at 93.71x, led by QIBs at 213.08x, HNIs at 116.72x and retail at 15.65x, underscoring strong institutional conviction and sustained retail participation.

Sudeep Pharma is a 36-year-old Vadodara-based manufacturer of pharmaceutical, food, nutrition and specialty ingredients, with a core focus on mineral-based products and iron phosphate. Its fast-growing specialty ingredients segment now contributes 34% of its Rs.500 crore topline, up from 17% four years ago, indicating a clear shift towards higher-value and margin-accretive product categories.

The company operates three manufacturing facilities in Gujarat with a combined installed capacity of 72,246 MT, of which around 50% is currently utilised, leaving room for operational leverage as demand scales. Exports form 60% of revenues across diversified geographies including Europe, North America, the Middle East and Asia-Pacific, positioning the company well to benefit from global demand for specialised mineral and nutritional ingredients.

In our IPO Analysis, we had concluded - Sudeep Pharma operates a strong business with attractive margins and heathy growth visibility. Hence, we recommend ‘apply’ to the IPO. The strong listing performance validates the view that Sudeep Pharma operates a structurally sound business with attractive margins and visible growth trajectory, particularly driven by its expanding specialty portfolio and export-led model, making it one of the more notable and well-received listings in the recent primary market cycle.