Sudip Pharma IPO: A Rare Pharma Listing After a Long Gap:-
So the IPO of Sudip Pharma has come in the market and after a long time, we are seeing the IPO of a company from the pharma sector coming in the market. If we look at the track record of the pharma sector, the IPO market generally respects pharma companies. Where investors also make listing gains and also make profits in the long term. So we will understand whether investors can make listing gains in the IPO of Sudip Pharma or not. How are premiums doing in the grey market? How is the company’s business? How are the financials?
IPO Timeline & Key dates:-
This IPO is going to open in the market on 21st November. Where you can apply till 25th November. Ok? The allotment basis will be clear on 26th November and here this IPO is going to be listed in the market on 27th sorry 28th November. This means that you will be able to trade the shares of Sudip Pharma on November 28. Ok? The issue size of the remaining IPO is going to be ₹895 crore. Ok? Both things will happen here now. First of all, you can also see your fresh issue which is just a fresh issue in name and here you can see a lot of offers for sale. There is an offer for sale of Rs 800 crore. Meaning, here this IPO is of total 95 crores, you cannot show this IPO and say that brother, the money of this IPO will be useful to some company. Overall, the existing investors of the company are going to sell their stake and shares here and leave. Meaning the major portion is OFSC. So this becomes the biggest negative. First of all consider that IPO is bad. If we do n’t see good things in the future then the IPO is bad.
IPO Size & Structure: The First Major Red Flag:-
This fresh issue of Rs 95 crore will be invested. So this is the company that uses CAPEX where to procure the machinery, your procurement of machinery is done and you have to set up the production line. The production line has to be located in one of their production facilities, so this ₹95 crore is going to be invested there. The other good thing is that you will get to see a retail quota of 35% in the IPO. So QIB becomes yours, here your HAI is 50%, 15% quota for high net worth individuals and 35% quota for retailers, here the reserve application means the total applications that are going to be allotted in this IPO will be 211 means 211000 people with ₹11000 applications are going to get allotment in this IPO. If we talk about the rest of the price band, then the price band of the share has been kept at 5632593.
Where the Fresh Issue Will Be Used:-
Here you get to see the basic idea. Ok? Recently, Sudip Pharma Company was incorporated in 1989. This means that the company already has multi-decade experience. Let’s talk about the company’s business. So the company works in the pharma sector. Where it works on nutrition and minerals. The company’s major business comes from minerals and nutrition. Minerals like calcium, iron, zinc, potassium, sodium. The company works on all these minerals. Where it serves the pharma sector.Because their business is not totally based on pharma. Now if we talk about the pharma sector, then the work they do is completely targeted and they make excipients. Ok? Manufactures pharma excipients. What is an excipient? Active Pharma Ingredients Its opposite becomes excipient. Basically, excipients are inactive pharma ingredients that support the active pharma ingredients in the API, increasing the bioavailability of the food and enabling the API to function efficiently. This is all the knowledge have about pharma and food. The rest depends on our business. Comes up with numbers. Rest you should do some research on this regarding your business.
IPO Quota Distribution:-
So you are seeing data from 2022 to 2025. Where he generated revenue of Rs 351 crore. In 2022 and 2023, it increased to above Rs 438 crore. 465 crores in 2024 and 511 crores in 2025 and the result of the June quarter also had a revenue of 113 crores. Overall, if we look at it at one go, we are not seeing that much growth in revenue here. But you should understand one thing, the sector of the company is pharma and food. And we know very well that the market gives higher valuation to pharma and food.
So we have to consider this thing. The company’s PAT in 2022 was around Rs 50 crore. It reached 62 crores and a big jump was seen here. Now here we can clearly see that the company has optimized itself. Just don’t pay attention to the scale. Pay attention to the margins. That is why we did not get to see any revenue from 2023 to 24. But the profit has increased quite well. Their profit in 2025 will be Rs 138 crore. There was a good growth in revenue.
Understanding Sudip Pharma’s Business Model:-
But you understand one thing, here out of ₹511 crores, the company is making a profit of ₹138 crores. Meaning the margins of the company are definitely high. If about EBITDA margin, then the EBITDA margin of the company is seen to be 39% and by the time it comes to PAT, the company is saving 27.65%, which means almost 1/4th of the money becomes net profit pad. Meaning the company’s margins are seen to be quite strong. About the rest of the valuation, the upper band of the price band kept by the company is ₹593. So according to this, their market capitalization will come out to be ₹6697 crores. This means that this is a total company worth ₹700 crores.
Revenue Growth: Slow but Steady:-
One quarter and taking out our Forward P Company would not be appropriate in my opinion. So your PE ratio will come out to be 48. Ok? So your PE ratio is seen to be around 50. The company are high and there is no growth but the margins are looking better. So somewhere or the other we are seeing the valuation to be on point. Now if the valuation of a company becomes on point then when will it get the benefit? When market conditions are good. The market sentiment will be good and the sentiments for the sector will also be good. About the premium that is prevailing in the grey market at present. So the premium in the grey market was the price of your share right now, so ₹593, where at ₹1 for ₹25, your premium in the grey market is running which is around 21%, so a premium of 21% is running in the grey market. Whereas this IPO has not opened in the market. So right now it appears positive to us. The remaining two IPOs are already open in the market. First of all, your IPO of Excel Technologies, the allotment basis of which will be cleared on 24th.
Profit Growth: Strong Margins, High Efficiency:-
Meaning the money will be unlocked on the 25th and only when the money is unlocked on the 25th, then you can apply here. At Sudip Pharma. So here on the last day we may see a big amount of money coming. If the money of these case owners is stuck there then that money can come out and come here.