Sudeep Pharma files DRHP with SEBI for IPO to raise ₹95 Crore

Gujarat-based Sudeep Pharma has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The offering includes a fresh issue of equity shares aggregating up to ₹95 crore and an offer for sale of up to 1,00,76,492 equity shares by the Promoter Selling Shareholder.

The offer for sale consists of up to 35,67,670 equity shares by Sujit Jaysukh Bhayani, up to 50,04,622 equity shares by Sujeet Jaysukh Bhayani HUF, up to 7,50,000 equity shares by Shanil Sujit Bhayani, and up to 7,54,200 equity shares by Avani Sujit Bhayani.

Sudeep Pharma, in consultation with the book-running lead managers, may consider a pre-IPO placement aggregating up to ₹19 crore. If such placement is undertaken, the size of the fresh issue will be reduced accordingly.

The IPO will follow the book-building process. Not more than 50 per cent of the offer will be available for allocation to qualified institutional buyers, at least 15 per cent to non-institutional bidders, and at least 35 per cent to retail individual bidders.

The company plans to utilise ₹75.81 crore from the fresh issue proceeds towards capital expenditure for procuring machinery at its Nandesari Facility I and for general corporate purposes.

Established in 1989, Sudeep Pharma has expanded its operations to manufacture over 100 products in the pharmaceutical, food and nutrition industries. The company operates in two business verticals: Pharmaceutical, food and nutrition, and Specialty ingredients.

According to the DRHP, based on a F&S report, it is one of the largest producers of food-grade iron phosphate by production capacity for applications such as infant nutrition and clinical nutrition. As of 31 December 2024, Sudeep Pharma had a combined annual manufacturing capacity of 65,579 metric tons.

The company is also among the largest exporters of mineral ingredients from India by volume as of 31 December 2024. It is the only company in India, and one of nine globally, with certification of suitability from the Council of Europe and written confirmation certification to sell calcium carbonate as an active pharmaceutical ingredient (API) in the European Union.

Sudeep Pharma operates three manufacturing facilities in Vadodara, Gujarat. It has a team of 37 personnel for specialised processes such as encapsulation, spray drying, granulation, trituration, liposomal preparations, and blending. Several of its products are certified “Kosher” and “Halal”.

The company has a presence in approximately 100 countries including the United States, South America, Europe, the Middle East, Africa, and Asia-Pacific. It maintains regional sales offices in the United States, Europe, the United Kingdom, and Latin America.

As of 31 December 2024, Sudeep Pharma had served over 1,100 customers. Its clients include Pfizer, Intas Pharmaceuticals, Mankind Pharma, Merck Group, Alembic Pharmaceutical, Aurobindo Pharma, Cadila Pharmaceutical, IMCD Asia Pte, Micro Labs, and Danone S.A.

For Fiscal 2024, the company reported revenue from operations of ₹459.28 crore, up from ₹428.74 crore in Fiscal 2023. The increase was attributed to a rise in calcium carbonate sales and growth in volume in the speciality ingredients segment. Profit after tax rose to ₹133.15 crore in Fiscal 2024 from ₹62.32 crore in the previous year.

For the nine-month period ending 31 December 2024, Sudeep Pharma posted revenue from operations of ₹344.45 crore and profit after tax of ₹94.54 crore.