Sudeep Pharma files draft papers with SEBI to mop up funds via IPO

Vadodara-based Sudeep Pharma has filed preliminary papers with capital markets regulator SEBI to raise funds through an initial public offering (IPO).

The IPO is a combination of fresh issuance of equity shares worth ₹95 crore with an offer for sale of up to 1,00,76,492 shares by the promoter selling shareholders, as per the draft red herring prospectus (DRHP) filed on Tuesday.

As part of the OFS, Sujit Jaysukh Bhayani, Sujeet Jaysukh Bhayani HUF, Shanil Sujit Bhayani and Avani Sujit Bhayani will be offloading their stakes in the company.

The company plans a pre-IPO placement of shares aggregating to ₹19 crore. If the pre-IPO placement is completed, the fresh issue size will be reduced.

The proceeds from its fresh issuance to the extent of ₹75.81 crore for capital expenditure towards procurement of machinery for its production line located at Nandesari facility, Gujarat, and general corporate purposes.

Since its inception in 1989, Sudeep Pharma has expanded its operations from the production of excipients (colouring agents and preservatives) to a wide variety of over 100 products in the pharma, food and nutrition industries, as of December 31, 2024.

The company's business is primarily structured into two verticals: pharmaceutical, food and nutrition and specialty ingredients. It operates three manufacturing facilities in Vadodara with a combined annual manufacturing capacity of 65,579 metric tonnes.

As of December 31, 2024, the company has built longstanding relationships with marquee customers, including Pfizer, Intas Pharmaceuticals, Mankind Pharma, Merck Group, Cadila Pharmaceutical, Micro Labs, and French multinational Danone.

For the fiscal ended December 31, 2024, the company’s revenue from operations and profit after tax stood at ₹344.45 crore and ₹94.54 crore, respectively.

The shares of the company are proposed to be listed on the BSE and the NSE.

ICICI Securities and IIFL Capital Services are the book-running lead managers, and MUFG Intime India is the registrar of the IPO.