Supriya Lifescience Limited IPO

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(i) It is one of the key Indian manufacturers and suppliers of active pharmaceuticals ingredients (“APIs”), with a focus on research and development. It has niche product offerings of 39 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anesthetic, vitamin, anti-asthmatic and anti-allergic.

(ii) It has consistently been the largest exporter of Chlorpheniramine Maleate and Ketamine Hydrochloride from India, It is among the largest exporters of Salbutamol Sulphate from India. In 2021, its products were exported to 78 countries to 1,060 customers including 286 distributors. It had grown its API business in several countries across Europe, Latin America, Asia, North America & India.

(iii) Its customers include global pharma companies such as Syntec Do Brasil LTDA, American International Chemical Inc, and AT Planejamento E Desenvolvimento De Negocios Ltda, with whom it has a business relationship for over nine years, and Suan Farma Inc, Acme Generics LLP, Akum Drugs Ltd, and Mankind Pharma Ltd with whom it has a business relationship for over four years.

(iv) Its business operations are supported by a modern manufacturing facility located in Parshuram Lote, Maharashtra.
Supriya Lifescience has a team of 16 scientists. Its R&D efforts are demonstrated by a strong pipeline of products such as Dextromethorphan Hydrobromide, Pentoxifylline, (S)-Ketamine Hydrochloride, Phenylephrine Hydrochloride, Allopurinol, and Benfotiamine.

Competitive Strengths
(i) Significant scale with a leadership position
(ii) Backward integrated business model
(iii)Geographically diversified revenues

Objects of the Supriya Lifescience Limited IPO:

The Offer comprises the Fresh Issue and Offer for Sale (i) Funding capital expenditure requirements (ii) Repayment of borrowings (iii) General corporate purposes
DRHP of Supriya Lifescience Limited IPO

Supriya Lifescience Limited IPO Details:

Open Date: Dec 16 2021
Close Date: Dec 20 2021
Total Shares: 25547445
Face Value: ₹ 2 Per Equity Share
Issue Type: Book Built
Issue Size: 700 Cr.
Lot Size: 54 Shares
Issue Price: ₹ 265 - 274 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 28 2021

Promoters And Management:

(i) Satish Waman Wagh, is the Chairman and Managing Director of the Company. He has been a director on the Board since incorporation. He holds a bachelor’s degree in science from R.D National College and W.A. Science College, University of Bombay, Mumbai, and an honorary Ph.D.in entrepreneurship from the Faculty of Management Studies, National American University. Apart from his association with our Company, he is a director on the boards of Supriya Medi-Chem Private Limited, Lote Industries Testing Laboratory Association, and Sachin Industries Limited. (ii) Smita Satish Wagh, is a Whole-time Director of the Company. She has been a director on the Board since incorporation. She holds a bachelor’s degree in arts from Smt. B.M.R. Mahila Mahavidyalaya, Shreemati Nathibai Damodar Thackersey Woman’s University, Mumbai, and a bachelor’s degree in education from Smt. Kapila Khandwala College of Education, University of Bombay, Mumbai. Apart from her association with our Company, she is a director on the boards of Supriya Medi-Chem Private Limited. (iii) Saloni Satish Wagh, is a Whole-time Director of the Company. She holds a bachelor’s degree in science from Parle Tilak Vidhyalaya Association’s Sathaye College, University of Mumbai, Mumbai, a master’s degree in science from Institute of Science, University of Mumbai, Mumbai, and a Ph.D. in chemistry from the Faculty of Science, Pacific University, Udaipur. (iv) Shivani Satish Wagh, is a Whole-time Director of the Company. She holds a bachelor’s degree in management studies from M.L. Dahanukar College of Commerce, University of Mumbai, Mumbai, and a master’s degree in international business management from Manchester Business School, University of Manchester, Manchester.

Financials of Supriya Lifescience Limited IPO:

Particulars (in Millions) March-20 March-19 Mar 18
Revenue 3,116 2,778 2,129
Cost of materials consumed 1,523 1,460 1,279
Increase in inventories -138 8.04 76
Employee benefits expense 255 189 163
Other Expense 491 472 392
Operating profit 983 647 219
OPM % 32% 23% 10%
Other Income 110 80 85
Finance Cost 64 54 53
Depreciation 68 102 107
Profit Before tax 961 571 144
Profit After Tax 734 394 87
EPS 10 5 1.20
 

Comparison With Peers:

As per RHP, the company has shown Solara Active, Neuland Lab, Aarti Drugs, and Divis Lab as its peer. They are currently trading at a P/E of 21x, 30x, 26x, and 56x respectively.

Recommendation on Supriya Lifescience Limited IPO:

Review and Recommendation of Supriya Life-sciences by InvestorZone is 6/10 1. Company revenue has grown from 200 Crores to 300 Crores in the last 3 years. 2. PAT has grown from 8 Crores to 78 Crores in the last 3 years. 3. P/E is 30x. This is the first company we have seen for a long time that is come up with the decent valuation. 4. It is one of the key Indian manufacturers and suppliers of active pharmaceuticals ingredients (“APIs”), with a focus on research and development. It has niche product offerings of 39 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anesthetic, vitamin, anti-asthmatic and anti-allergic. 5. It is a backward integrated company. and having consistent strong financial performance due to de-risked business. model;

Lead Manager of Supriya Lifescience Limited IPO:

  1. Axis Capital Limited
  2. ICICI Securities Limited

Registrar of Supriya Lifescience Limited IPO:

  1. Link Intime India Private Limited

Company Address:

207/208, Udyog Bhavan, SonawalaRoad, Goregaon –East, Mumbai –400063, Maharashtra, India Tel:+91-22-40332727

Discussion on Supriya Lifescience Limited IPO:

1 Comment

    No. of Shares Outstanding before IPO = 73,183,530
    Fresh Shares to be issued in IPO = 72,99,270
    Total Shares after IPO = 80,482,800

    Issue Price = 274
    Mcap = 2200 Crores

    PAT (FY21) = 73 Crores

    EPS = 73/8 = 9.125

    P/E (FY21) = 30x

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