Sudeep Pharma Files DRHP with SEBI for IPO

Proceeds from the fresh issue will primarily be used for capital expenditures, including the procurement of machinery for Sudeep Pharma’s production facility in Nandesari, Gujarat.

Sudeep Pharma, a Vadodara-based pharmaceutical, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), signaling its intention to launch an initial public offering (IPO).

The public offering comprises a fresh issue of equity shares aggregating to INR 95 Cr and an Offer for Sale (OFS) of up to 1,00,76,492 equity shares by existing promoter shareholders.

The selling stakeholders include Sujit Jaysukh Bhayani, Sujeet Jaysukh Bhayani HUF, Shanil Sujit Bhayani, and Avani Sujit Bhayani.

Established in 1989, Sudeep Pharma began operations with the production of excipients and has since diversified its portfolio to over 100 products spanning the pharmaceutical, food, and nutrition segments.

Capex-Driven Growth Ahead

According to the DRHP, the company may consider a pre-IPO placement worth INR 19 Cr. If completed, the size of the fresh issue will be adjusted accordingly.

Proceeds from the fresh issue will primarily be used for capital expenditures, including procuring machinery for Sudeep Pharma’s production facility in Nandesari, Gujarat.

Moreover, a portion of the proceeds will also be used for general corporate purposes, as reported.

The company operates three manufacturing units in Vadodara, Gujarat, with a combined annual production capacity of 65,579 metric tonnes. As of December 31, 2024, its business is organized under two main verticals: pharma, food & nutrition, and specialty ingredients.

Sudeep Pharma also has longstanding relationships with clients such as Pfizer, Intas Pharmaceuticals, Mankind Pharma, Merck Group, Alembic Pharmaceutical, Aurobindo Pharma, Cadila Pharmaceutical, IMCD Asia Pte., Micro Labs, and Danone S.A.

In the financial year ended December 31, 2024, the company reported revenue from operations of INR 344.45 Cr and a net profit of INR 94.54 Cr.

Sudeep Pharma intends to list its shares on both the BSE and NSE. ICICI Securities and IIFL Capital Services are managing the IPO as book-running lead managers, while MUFG Intime India has been appointed as the registrar.

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