About the Company
Sudeep Pharma Ltd is a Gujarat-based global company founded in 1989 that makes specialized pharmaceutical and food ingredients that go into medicines, nutritional supplements, and food products. Think of them as creating the “building blocks” that pharmaceutical companies, food manufacturers, and nutrition brands use to make their final products. They make things like pharmaceutical excipients (inactive ingredients that help medicine work better), specialty minerals, vitamins, and food-grade nutrition ingredients. Their products are used worldwide—they serve over 1,100 customers across 100+ countries, including 14 Fortune 500 companies like GSK, Micro Labs Limited, and Danone.
READ FULL DRHP HERE: |SEBI DRHP SUDEEP PHARMA|
IPO Details Table
| Details | Explanation | Data |
|---|---|---|
| IPO Opening Date - Buy shares from - 21 Nov 2025 | ||
| IPO Closing Date - Last date to apply - 25 Nov 2025 | ||
| Price Band - Price range for shares - ₹563 – ₹593 | ||
| Lot Size - Min. shares to buy - 25 shares (~₹14,825 at upper band) | ||
| Total Issue Size - Max money raised - ₹895 crore | ||
| Fresh Issue - New shares, money goes to company - ₹95 crore (0.16 crore shares = 10.6%) | ||
| Offer for Sale (OFS) - Old owners sell shares - ₹800 crore (1.35 crore shares = 89.4%) | ||
| Total Shares - Offered How many shares - 1.51 crore shares | ||
| Listing Date - Shares start trading - 28 Nov 2025 (BSE, NSE) | ||
| Face Value - Company unit value - ₹1 per share | ||
| Registrar - Share allocation handler - MUFG Intime India Pvt Ltd CLICK HERE | ||
| Book Managers - IPO arrangers - ICICI Securities, HDFC Bank, IIFL Capital, Nomura |
REGISTRAR: Public Issues - MUFG Intime India Private Limited
What Will the IPO Money Be Used For?
| Purpose | Amount (₹ Cr) | % of Fresh Issue | Explanation |
|---|---|---|---|
| Machinery for Nandesari Facility I | 75.81 | 80% | Expand production capacity, newer machines |
| General corporate purposes | 19.19 | 20% | Working capital, daily operations |
Important Note: Only ₹95 crore (11%) is fresh issue for company growth. ₹800 crore (89%) goes to existing shareholders selling their stakes—this is mostly an OFS, not fresh capital.
IPO Timeline
| Event | Date |
|---|---|
| Anchor Bidding | 20 Nov 2025 |
| IPO Opens | 21 Nov 2025 |
| IPO Closes | 25 Nov 2025 (5 PM) |
| Allotment Date | 26 Nov 2025 |
| Refunds Issued | 27 Nov 2025 |
| Shares to Demat | 27 Nov 2025 |
| Listing Date | 28 Nov 2025 |
Business Model & Revenue Structure
How Sudeep Pharma Makes Money:
- Pharmaceutical Excipients & Ingredients (66% of revenue)
- What: Inactive ingredients that make medicines work better—coatings, binders, fillers, stabilizers
- Customers: Pharmaceutical companies globally
- Examples: GSK, Micro Labs, Indian pharma companies
- Price Model: B2B sales based on volume and specifications
- Specialty Ingredients & Functional Foods (34% of revenue)
- What: Specialty minerals, vitamins, nutritional ingredients, food additives
- Customers: Food manufacturers, supplement makers, nutrition brands
- Examples: Danone, nutrition supplement makers
- Price Model: Premium pricing for specialty/patented formulations
Geographic Revenue Split (FY25):
- Export/International: ~60% of revenue (USA, Europe, Asia)
- Domestic India: ~40% of revenue
Key Customer Characteristics:
- Top 5 Customers: Account for ~50% of revenue
- Repeat Customer Rate: 83.17% of revenue from repeat/existing customers (very high stickiness)
- Average Tenure: 7+ years with top customers (long-term relationships)
Key Financial Metrics
| Metric | FY23 | FY24 | FY25 | Q1 FY26 (Jun 2025) | What It Means |
|---|---|---|---|---|---|
| Revenue | ₹428.74 Cr | ₹459.28 Cr | ₹501.99 Cr | ₹124.92 Cr | 10% YoY growth |
| Profit After Tax | ₹62.32 Cr | ₹133.19 Cr | ₹138.69 Cr | ₹31.27 Cr | PAT jumped 114% in FY24 |
| EBITDA | ₹98.64 Cr | ₹187.76 Cr | ₹199.28 Cr | ₹48.57 Cr | Operating profit up 102% |
| EBITDA Margin | 23% | 41% | 40% | 39% | Margins doubled in FY24 |
| PAT Margin | 14.5% | 29% | 27.6% | 25% | Each ₹100 sales = ₹27 profit |
| ROE | — | — | 27.88% | — | Excellent shareholder returns |
| ROCE | — | — | 29.53% | — | Great capital efficiency |
| Debt-to-Equity | — | 0.17 | 0.20 | 0.23 | Low debt, but rising slightly |
| Net Worth | ₹226.29 Cr | ₹359.07 Cr | ₹497.53 Cr | ₹688.32 Cr | Strong capital base growing |
| Employees | — | — | 704 | — | 704 permanent staff |
| Employee Cost (est) | ~₹50 Cr | ~₹65 Cr | ~₹80 Cr | ~₹20 Cr | About 16% of revenue |
Key Points:
- Explosive Profit Growth: PAT jumped 114% in FY24 (from ₹62 to ₹133 Cr)
- Margin Magic: EBITDA margin nearly doubled from 23% to 40% in one year
- Slowing Revenue: Only 10% YoY growth vs profit jump = margin expansion story
- Strong Balance Sheet: Growing net worth, low debt (0.20 D/E)
- Reasonable Employee Cost: 16% of revenue is manageable for pharma
- Repeat Customer Base: 83% of revenue from existing customers = sticky business
Cost of Acquisition – For Promoters
- Sudeep Pharma started from scratch in 1989 by the promoters
- Initial investment: Estimated ₹2-5 crore for factory and equipment in 1989
- Built organically over 36 years—no major acquisitions
- Current post-IPO valuation: ₹6,697.85 crore market cap at upper price band
- Promoter Gain: Approximately 1,000x+ returns over 36 years
OFS Component: Promoters and early investors selling ₹800 crore worth of shares (89% of IPO)—this is a major exit to book long-term profits
Industry Analysis – Pharma Ingredients & Specialty Nutrition
Massive Growth Opportunity:
| Market | Size | Growth Rate | Timeline |
|---|---|---|---|
| Global Food Ingredients Market | USD 350+ Bn | 6.5% CAGR | 2024-2029 |
| Specialty Food Ingredients | USD 100+ Bn | 6.8% CAGR | 2024-2029 |
| Nutritional Ingredients | USD 125+ Bn | 6.8% CAGR | 2024-2029 |
| Vitamins & Minerals | USD 35+ Bn | 7% CAGR | 2024-2029 |
| Global Specialty Nutrition | USD 18+ Bn | 7.2% CAGR | 2024-2029 |
Sudeep’s Market Position:
- No direct listed peers in India making same products—unique market position
- Positioned in high-growth niche of specialty ingredients
- Global demand growing 6-7% annually
- India-based manufacturing = cost advantage vs developed countries
Growth & Strengths
Major Strengths:
- Proprietary Technology & Monopoly Products
- Only 3 countries can produce—USA, Europe, India (Sudeep)
- Some products have NO global competitors
- Hard to replicate technology
- Explosive Profit Margins
- EBITDA margin 40% (vs 20-25% for most pharma)
- Specialty products generate 70%+ margins
- Margin expansion story = profits grow faster than revenue
- Global Reach & Customer Base
- Serves 1,100+ customers in 100+ countries
- 14 Fortune 500 companies as clients
- 60% revenue from international = currency hedging + diversification
- Customer Stickiness
- 83% of revenue from repeat customers
- 7+ years average tenure with top clients
- Long-term relationships = predictable revenue
- Low Debt & Strong Balance Sheet
- Debt-to-equity only 0.20 (very safe)
- Growing net worth (₹688 Cr)
- Can fund expansion organically
- Premium Positioning
- Not competing on price—competing on quality and specialty
- Customers willing to pay premium for unique products
- Higher margins = better profitability
- Global Industry Tailwinds
- Pharma market growing 6-7% globally
- Nutrition market booming (wellness trend)
- India becoming pharma/ingredient hub (cost advantage)
Key Risks & Concerns
Major Risks:
| Risk | Why It Matters | Impact |
|---|---|---|
| Mostly OFS (89% of IPO) | Old investors exiting = less growth capital for company | Company gets only ₹95 Cr for expansion vs ₹895 Cr raised |
| Customer Concentration | Top 5 customers = 50% of revenue | Loss of 1-2 big customers = major profit hit |
| Slow Revenue Growth | Only 10% YoY—profit growth from margins, not sales | If margins decline, profits could stagnate |
| Expensive Valuation | P/E of 53x pre-IPO, premium pricing | Stock could fall if growth disappoints |
| Regulatory Risk | Pharma manufacturing heavily regulated | Factory inspections, compliance failures = shutdown risk |
| Export Dependence | 60% revenue from overseas | Currency fluctuation (rupee strength) hurts profits |
| Competition Risk | Global giants could develop competing products | Price pressure possible on commodity ingredients |
| Slowing Growth | Revenue growing only 10% vs profit margin expansion | Difficult to maintain current momentum |
Valuation – Is It Expensive?
| Metric | Sudeep Pharma | Comment |
|---|---|---|
| P/E Ratio (Pre-IPO) | 47.61x | Very expensive |
| P/E Ratio (Post-IPO) | 53.55x | Even more expensive after dilution |
| EV/Revenue | ~8-9x | Very premium |
| Price-to-Book | 12.93x | Premium valuation |
| Market Cap | ₹6,697.85 Cr | Large-cap company |
IPO FAQS
What is an IPO?
- An IPO (Initial Public Offering) is when a private company sells its shares to the public for the first time to raise money.
- Example: If a well-known pizza company wants to grow, it can list its shares on the stock exchange so anyone can buy a piece of the company.
How can you apply for an IPO (using Zerodha or Upstox)?
- Make sure you have a Demat account and your bank account is linked.
- Steps:
- Log in to your broker’s app (e.g., Zerodha Kite, Upstox).
- Go to the IPO section.
- Select the company’s IPO you want to apply for.
- Enter how many shares (or ‘lots’) you want and the price you wish to bid.
- Enter your UPI ID, submit your application, and approve the UPI payment request.
How are IPO shares allotted?
- If more people want shares than are available, the company uses a lottery system to decide who gets them.
- If you don’t get shares, your money is simply returned.
What is GMP (Grey Market Premium)?
- GMP shows the extra price people are willing to pay for IPO shares before they officially start trading.
- Example: If IPO price is ₹100 and GMP is ₹20, people are unofficially ready to pay ₹120. It hints at the IPO’s popularity but isn’t a guarantee.
Where to check upcoming IPOs (IPO calendar)?
- Visit popular finance sites like Chittorgarh, IPOWatch, or official exchange websites (NSE, BSE) and look for the “Upcoming IPO” section.
What are IPO listing gains?
- If the share’s price rises on the first trading day, you can make instant profit.
- Example: You buy at ₹150, and it opens at ₹200, you gain ₹50 per share.
How can you make profit from an IPO?
- Quick gains on listing day (if the stock price goes up).
- Long-term: If the company grows, the share price could increase further.
Which IPO is best to buy?
- There is no single best IPO. Check the company’s background, current demand, and GMP, but always research before investing.
- High GMP or popularity doesn’t guarantee profits.
Are IPOs safe?
- IPOs can be profitable but also risky; prices can go up or down sharply.
- Only invest if you are ready for potential losses.
How to check IPO allotment status?
- After the IPO process, check on exchanges (BSE/NSE websites) or the IPO registrar’s site (like K-Fintech, Bigshare,or mufg-intime) by entering your PAN or application number to see if you got shares.
Important Tips for Retail Investors Applying for an IPO
- Use Only Your Own PAN Card:
Avoid using the same PAN card for multiple IPO applications. For example, if you have already applied using your PAN for one IPO, don’t try to apply again with the same PAN under different accounts or through others. - Apply in the Right Category:
Ensure you select the correct investor category (such as Retail Individual Investor) when filling out your application. Applying under a wrong category can lead to rejection or disqualification. - Maintain Sufficient Bank Balance:
Before applying, ensure your bank account linked to the application has enough funds to cover the full bid amount. For instance, if the IPO application requires a payment of ₹15000, make sure your account holds at least that amount. - Use Your Own Bank Account:
Always apply through your own bank account. Using someone else’s account can cause your application to be rejected during the verification process. - Avoid Last-Minute Applications:
Don’t wait until the deadline day or moments before to apply. Last-minute submissions may face technical glitches or processing delays, reducing the chances of success.