Established in 1989, the company is one of the largest producers of food-grade iron phosphate for infant nutrition, clinical nutrition, and the food and beverage sectors MUMBAI, June25 (The CONNECT)-Gujarat-based Sudeep Pharma, a technology led manufacturer of excipients and specialty ingredients for the pharmaceutical, food and nutrition industries, has filed its draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to mop up funds through an initial public offering (IPO).
The IPO, with a face value of ₹1 each, combines fresh issuance of Rs 95 crore with 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 5004622 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.
The company, in consultation with the book-running lead managers, may consider an issue of specified securities, aggregating to Rs 19 crores as pre-IPO placement shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced.
The offer is being made through the book-building process, wherein not more than 50% of the offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not less than 15% of the offer shall be available for allocation to non-institutional bidders, and not less than 35% of the offer shall be available for allocation to retail individual bidders.
The proceeds from its fresh issuance to the extent of Rs 75.81 crore for capital expenditure towards procurement of machinery for its production line located at Nandesari Facility I; and general corporate purposes.
Sudeep Pharma since its inception in 1989, have expanded its operations from production of excipients to a wide variety of over 100 products in the pharmaceutical, food and nutrition industries, as of December 31, 2024. Its business is primarily structured into two verticals, Pharmaceutical, food and nutrition and Specialty ingredients.
It is one of the largest producers of food-grade iron phosphate for infant nutrition, clinical nutrition, and the food and beverage sectors, in terms of production capacity with a combined annual manufacturing capacity of 65,579 metric tons as of December 31, 2024, according to a F&S report mentioned in the DRHP. It is one of the largest exporters of mineral ingredients for pharmaceutical, food and nutrition industries from India to its global markets in terms of volume of products exported during 2024 as of December 31, 2024. It is the only company in India and one of nine companies globally with certification of suitability issued by the Council of Europe (CEP) and written confirmation certification for sale of calcium carbonate as an active pharmaceutical ingredient (API) in the European Union as of December 31, 2024. It is one of the pioneers in India to introduce a product range of liposomal ingredients for nutrient absorption and stability.
The company operates three Manufacturing Facilities in Vadodara, Gujarat, with a combined annual manufacturing capacity of 65,579 MT. It has a team of 37 personnel for encapsulation, spray drying, granulation, trituration, liposomal preparations and blending. Additionally, some of its products are certified “Kosher” and “Halal”, underscoring its commitment to quality, inclusivity, and regulatory compliance. It has presence in both, domestic and international markets, to around 100 countries including key regions such as the United States, South America, Europe, the Middle East, Africa, and Asia-Pacific. It also has regional sales offices in United States, Europe, United Kingdom and Latin America.
As of December 31, 2024, the company has served over 1,100 customers, and have built longstanding relationships with marquee customers including Pfizer Inc, Intas Pharmaceuticals Limited, Mankind Pharma Limited, Merck Group, Alembic Pharmaceutical Limited, Aurobindo Pharma Limited, Cadila Pharmaceutical Limited, IMCD Asia Pte. Ltd., Micro Labs Limited, and Danone S.A..
Sudeep Pharma’s revenue from operations increased by 7.12% from ₹ 428.74 crore in Fiscal 2023 to ₹ 459.28 crore in Fiscal 2024, primarily on account of increase in sale of calcium carbonate and an increase in volume of products for speciality ingredients segment. Profit after tax increased from ₹ 133.15 crore in Fiscal 2024 as compared to ₹ 62.32 crore in Fiscal 2023.
For the nine-month period ended December 31, 2024, revenue from operations and profit after tax stood at ₹344.45 crore and ₹94.54 crore respectively.
ICICI Securities Limited and IIFL Capital Services Limited are the book-running lead managers and MUFG Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.
