Supriya Lifescience Limited – Globe Capital
Supriya Lifescience Limited
Closed
Price Band
Rs. 265 – 274
IPO Issue Period
Dec 16, 2021 to Dec 20, 2021
Issue Size
Rs. 700 Cr.
Face value
Rs. 2/-
Fresh issue
Rs. 200 Cr.
Offer for sale
Rs. 500 Cr.
Minimum Shares for Retail
54 shares
Listing on
NSE, BSE
Issue Type
Book Building
Registrar to the Issue
Link Intime India Private Ltd
Tentative Listing Date
Dec 28, 2021
QIB
Not More than 75% of the offer
NII
Not less than 15% of the offer
Retail
Not less than 10% of the offer

Axis Capital Limited
ICICI Securities Limited

Supriya Lifescience Limited (“SLL”) was incorporated on March 26, 2008. SLL is one of the key Indian manufacturers and suppliers of active pharmaceuticals ingredients (“APIs”), with a focus on research and development. Company’s focus is primarily on diverse therapeutic areas and niche products. In Fiscal 2021, the company’s products were exported to 86 countries to 1,296 customers including 346 distributors. The company has API business in Europe, Latin America, Asia, and North America.

Supriya Lifescience has a modern manufacturing facility in Maharashtra spread across 23,806 sq. mts, having a reactor capacity of 547 KL/ day including 7 clean rooms. The company has also acquired a plot of land, admeasuring 12,551 sq. mt, near the present manufacturing facility, to expand its manufacturing infrastructure. The company’s manufacturing facility has received approvals from USFDA, EDQM TGA-Australia, KFDA-Korea, PMDA Japan, NMPA (previously known as SFDA)- China, Health Canada, in relation to API products being exported to the relevant jurisdictions by the company.

For year/ period ended ( in Cr.)

31 Mar 2021 31 Mar 2020 31 Mar 2019
Sales 385.37 311.64 277.84
Profit After Tax 123.83 73.40 39.42
EPS 16.92 10.03 5.39
OPM (%) 46.23% 35.12% 26.19%
PATM (%) 31.25% 22.75% 13.79%
  • Significant scale with a leadership position across key & niche products
  • Backward integrated business model;
  • Advanced manufacturing and research and development capabilities;
  • Consistent financial performance due to de-risked business model;
  • The experienced senior management team and qualified operational personnel.
  • Funding capital expenditure requirements of the company
  • Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the company and
  • General corporate purposes

SLL has niche product offerings of 38 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti-allergic. They have consistently been the largest exporter of Chlorpheniramine Maleate and Ketamine Hydrochloride from India. At the upper band of Issue is priced at 15.21x with annualized EPS of 18.02x as at the end of H1FY22. P/BV is 5.99 at book value of 45.76 as at the end of H1FY22. The sector P/E is 23.03x which indicates that the Issue is attractively priced. Hence, investors can consider with a long-term perspective.

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