Sudeep Pharma IPO: Price Band ₹563–₹593, Strong GMP Signals Premium Listing
Sudeep Pharma Ltd, a Vadodara-based manufacturer of mineral-based excipients and specialty ingredients for the pharmaceutical, food, and nutrition industries, is launching its maiden public issue. The company has filed a Draft Red Herring Prospectus (DRHP) with SEBI and aims to raise ₹895 crore through the IPO.
The IPO comprises:
- A fresh issue of ₹95 crore.
- An Offer for Sale (OFS) of approximately 13.49 million shares, aggregating to about ₹800 crore, being sold by promoter and promoter‐group shareholders.
The price band for the IPO is set at ₹563–₹593 per equity share (face value ₹1). The IPO will open for subscription on 21 November 2025 and close on 25 November 2025.
Allocation:
- Up to 50% of the issue is reserved for Qualified Institutional Buyers (QIBs)
- 35% for Retail Individual Investors
- 15% for Non-Institutional Investors (NIIs)
The company plans to list its shares on the BSE and NSE. According to reports, the tentative listing is slated for 28 November 2025, with allotment expected on 26 November and shares credited/refund by 27 November.
Business Profile
Sudeep Pharma was incorporated in 1989 and has grown into a global player in the manufacture of excipients and specialty ingredients. Its product portfolio includes mineral salts (like calcium, iron, zinc, magnesium, sodium), specialty granulated and spray-dried ingredients, encapsulated actives, liposomal preparations, and pre-mixes.
The company operates through multiple manufacturing facilities — three in Gujarat (India) and at least one in Ireland. According to its DRHP, as of June 30, 2025, it has an annual production capacity of 72,246 metric tonnes.
It has a strong global footprint, operating in more than 100 countries. The company’s client list includes more than 1,100 customers, among them major multinational corporations like Pfizer, Merck, Danone, Aurobindo Pharma, and Intas.
Sudeep Pharma is especially known for being one of the largest producers of food-grade iron phosphate, used in infant nutrition, clinical nutrition, and food-&-beverage sectors.
Financials
According to its DRHP, for the fiscal year ended December 31, 2024, Sudeep Pharma reported:
- Revenue of about ₹344.45 crore
- Profit after tax of ₹94.54 crore
As per Upstox’s IPO preview, for FY25, it reported ₹511.33 crore in revenue and a net profit of around ₹138.69 crore. Its recent quarterly results (Q1 FY26) reflect continued strength, according to the same source.
Use of Proceeds
From the fresh issue portion (₹95 crore), Sudeep Pharma plans to use:
- ₹75.8 crore for capital expenditure — specifically for buying machinery for its Nandesari Facility I.
- The rest for general corporate purposes.
Strengths and Opportunities
- Diversified product portfolio: Over 100 products spanning mineral salts, excipients, specialty actives.
- Global reach: Strong international presence across pharma, food, and nutrition industries.
- Large, stable customer base: More than 1,100 customers including major global companies.
- Manufacturing strength: Multiple production facilities, large capacity, and advanced manufacturing processes (spray drying, encapsulation, liposomes).
- Regulatory credentials: Some facilities are US FDA–approved for mineral-based manufacturing.
Risks
- Customer concentration risk: A significant portion of revenue comes from large, marquee clients — any loss of contracts or pricing pressure could hurt margins.
- Execution risk in capex: The company’s planned capital expenditure (for its Nandesari facility) is sizeable; delays or cost overruns could erode benefits.
- Macroeconomic risk: As a global exporter, currency fluctuations and global demand volatility could impact earnings.
- Regulatory risk: Pharmaceutical and food-nutrition industries are subject to strict regulations; any changes or non-compliance can pose a threat.
Sudeep Pharma IPO Grey Market Premium (GMP) & Market Sentiment
Ahead of the IPO, the grey market premium (GMP) for Sudeep Pharma has jumped by 16%, indicating strong demand in the unlisted market. Based on this GMP, the tentative listing price could be around ₹688, which would imply a gain of approximately ₹95 over the IPO’s upper band of ₹593.
Conclusion
Sudeep Pharma’s IPO offers an interesting play in the mineral-based excipient and specialty ingredients space — a niche but growing segment in pharmaceuticals, food, and nutrition. With a strong manufacturing base, global customer reach, and a concrete use-of-proceeds plan, the company is well positioned for growth.
However, potential investors should weigh the opportunity against the risks — especially customer concentration, capex execution, and market volatility. Those with a long-term perspective and belief in the specialty ingredients story may find value, while more risk-averse investors might want to wait for post-listing performance.
