Sudeep Pharma IPO: Know about business model, strengths and risks ahead of issue opening

Sudeep Pharma IPO: Pharmaceutical and speciality ingredient maker, Sudeep Pharma, is set to launch its much-awaited public issue on November 21, 2025.

The company serves the global pharmaceutical, food, and nutrition industries. Over the years, Sudeep Pharma has evolved from producing excipients to a diversified ingredients player, with over 100 products as of June 30, 2025.

Sudeep Pharma IPO details

Sudeep Pharma IPO aims to raise ₹895 crore through its public issue, which is a 100% book-built and includes a fresh issue and offer-for-sale of over 1.5 crore shares

The company has fixed the price band of the issue at ₹563 to ₹593 per share. The lot size, or the minimum bid quantity to apply for the issue, is 25 shares. This equates to a minimum investment amount of ₹14,825 per lot at the upper end of the price band for retail investors.

Sudeep Pharma has appointed ICICI Securities as the book-running lead manager of the IPO, while MUFG Intime India Pvt.Ltd is the registrar for the issue.

Sudeep Pharma IPO timeline

Sudeep Pharma IPO will remain open for bidding from November 21 to November 25, 2025. After the bidding is closed, the allotment of shares is expected to be finalised on November 26.

Successful bidders can expect the shares to be credited to their demat accounts by November 27, with others receiving refunds on the same day. Sudeep Pharma shares are scheduled to list on the BSE and NSE on November 28, 2025.

Financial snapshot

Sudeep Pharma IPO objective

• Capital expenditure: The company will use ₹75.81 crore towards capital expenditure for the procurement of machinery at Nandesari Facility I.
• General corporate purposes: Part of the IPO proceeds will be used for general corporate purposes.

About the company

Sudeep Pharma is recognised as one of the largest producers of food-grade iron phosphate for infant nutrition, clinical nutrition, and the food and beverage sectors, in terms of production capacity. It is a key exporter of mineral ingredients for pharmaceutical, food, and nutrition applications. In 2024, it stood among India’s largest exporters in this category, with a clientele spanning about 100 countries.

The company operates under two verticals: Pharmaceutical, food, and nutrition ingredients, which include mineral salts like calcium, zinc, iron, potassium, magnesium, sodium, and copper and Speciality ingredients, which are produced by its subsidiary SNPL and include liposomal ingredients, granulated or spray-dried formats, encapsulated actives, and micronutrient premixes.

Segment-wise, the pharmaceutical, food and nutrition segment contributed 66.43% of revenue, while speciality ingredients accounted for 33.57% and intersegment revenue stood at 7.96% as of June 2025.

Sudeep Pharma has served over 1,100 clients worldwide, including 14 Fortune 500 multinational corporations as of June 30, 2025. 83.17% of revenue came from repeat customers, highlighting customer stickiness.

The company has four manufacturing facilities and twelve production lines, including three units in Gujarat with a combined annual manufacturing capacity of 65,579 MT that produce food-grade and pharmaceutical minerals, speciality ingredients. The company has another plant in Ireland, which was acquired through the NSS acquisition. Together, these facilities offer a combined annual production capacity of 72,246 MT.

Strengths and opportunities

• Market leadership and diversified product portfolio: The company is a leading manufacturer of pharmaceutical, food, nutrition, and speciality ingredients in terms of production volume as of June 30, 2025, with a strong focus on mineral-based products and iron phosphate. It has a diversified portfolio of 100+ products, supported by a stable revenue mix where pharma/food/nutrition contributed 66.43% and speciality ingredients 33.57% in Q1FY26.
• Long-standing global customer base: As of June 30, 2025, the company has served 1,100+ customers, including 40+ blue-chip MNCs and 14 Fortune 500 clients, demonstrating strong global acceptance. Key customers include Pfizer, Merck, Danone, Intas, and Aurobindo. The top five customers contributed 34.08% of revenue as of June 2025, with an average relationship tenure of 7.08 years, indicating high stickiness.
• Well-equipped manufacturing facilities: The company operates four manufacturing facilities, including one in Ireland, with a combined annual production capacity of 72,246 MT across 12 lines. Facilities hold 35 global accreditations, including USFDA, EXCiPACT, WHO-GMP, and ISO certifications. Notably, its Nandesari Facility I became the first and only Indian company certified by the USFDA for mineral-based food ingredients. Ongoing capex of ₹12.95 crore and the upcoming 51,200 MT facility by Q4FY26 provide clear visibility for capacity-driven growth.

Risks and Threats

• High customer concentration: The company derives a significant share of revenue from a limited customer base. Its top five customers contributed 34.08% in Q1FY26 and 29.76% in FY25, while the top 10 accounted for 42.10% and 40.78% respectively. The largest customer accounted for 14.58% in Q1FY26 and 8.15% in FY25. A slowdown, order loss, or pricing pressure from any of these key accounts could materially impact revenue and margin visibility.
• Heavy dependence on certain segments: The pharmaceutical, food & nutrition segment contributes the majority of business with 66.43% of revenue in Q1FY26, 65.84% in FY25, 67.64% in FY24, and 77.01% in FY23. A regulatory change, slowdown in global nutraceutical demand, or pricing pressure in this segment can significantly compress overall topline growth.
• High exposure to export markets: Exports contributed 58.68% in Q1FY26, 59.27% of revenue in FY25, and 64.43% in FY24, exposing the company to FX volatility, geopolitical risk, and regulatory shifts in overseas markets. The firm's dependency on developed markets like North America (23.19% in FY25) and Europe (9.59%) heightens vulnerability to trade restrictions and tariff changes.