On the third day of bidding, Sudeep Pharma’s IPO is subscribed 5.09 times, showing strong interest, especially from non-institutional investors. The grey market premium (GMP) cooled to Rs 86, indicating an estimated listing price about 14.5% above the upper band. Investors should weigh promising fundamentals against valuation.
Sudeep Pharma has seen its IPO oversubscribed 5.09 times on day three, with bids for over 5.37 crore shares against an offer of 1.06 crore, signaling robust demand primarily from retail segments. The ₹895 crore IPO, priced at Rs 563-593 per share, includes a fresh issue and an offer for sale by promoters.
The grey market premium has decreased from Rs 130 to Rs 86, suggesting more moderate listing gains around 14.5% above the upper price band. While the sector tailwinds in pharmaceuticals and nutraceuticals remain strong, some analysts call the IPO valuation reasonable but slightly expensive with a price-to-earnings ratio near 48 at the upper band.
Brokerages like Geojit Investments recommend subscribing for medium- to long-term investors, given Sudeep Pharma’s strong balance sheet, global customer base, and expansion plans into battery-grade minerals. The IPO allotment is expected on November 26, with listings on NSE and BSE scheduled for November 28.
Key Highlights:
-
IPO subscribed 5.09x on day 3, led by strong retail investor demand
-
Grey Market Premium cooled to Rs 86, indicating ~14.5% potential listing gains
-
Price band set at Rs 563-593 with minimum retail investment of Rs 14,825
-
Valuation considered fair but slightly expensive at upper band (P/E ~48)
-
Company well-positioned in pharma ingredients and specialty chemicals sectors
-
Recommended for medium- to long-term investors by brokerages
-
Allotment on November 26; listing scheduled for November 28 on NSE & BSE
Sources: India Today, Upstox, Economic Times, Geojit Investments