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    QONEQT in Stock Market Update

    16-Dec-2021 05:36 AM


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    Supriya Lifescience IPO opens today, should you subscribe?
    Increasing exposure to high-margin regulated markets will support operating margins, while its backward integration plans augur well for the company
    Supriya Lifescience Ltd, an Indian manufacturer and supplier of active pharmaceutical ingredients (APIs), will open its Rs 700-crore initial public offering (IPO) on December 16. The issue will close on December 20.

    The company has a niche product basket of 38 APIs across antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti-allergic therapies.

    It is India’s largest exporter of Chlorpheniramine Maleate, an anti-allergy drug, and Ketamine Hydrochloride, a general anaesthetic.

    The company was among the largest exporters of Salbutamol Sulphate, which is used to treat asthma, contributing to 31 percent of API shipments from India in FY21 in volume terms.

    Its products are registered with various international regulatory authorities including the US Food and Drug Administration, European Directorate for the Quality of Medicines and HealthCare and China’s National Medical Products Administration.
    As of October 31, Supriya Lifescience exported products to 1,296 customers in 86 countries through a network of 346 distributors.

    The company’s manufacturing facility is in Parshuram Lote, Maharashtra, about 250 km from Mumbai.

    About the IPO

    The Rs 700-crore IPO involves a fresh issue of shares worth Rs 200 crore and an offer-for-sale of shares for Rs 500 crore by promoter Satish Waman Wagh, who holds a 99.26 percent stake in the company. The promoter group’s holding is 99.98 percent.

    The shares with a face value of Rs 2 will be offered at Rs 265-274 apiece.

    Investors can bid for a minimum of 54 shares and multiples of 54 shares thereafter. Retail investors can invest a minimum of Rs 14,796 for one lot, and their maximum investment is Rs 1,92,348 for 13 lots.

    The allotment of shares will be decided by December 23. Unsuccessful investors will get refunds by December 24 and successful bidders will get shares credited to their demat accounts by December 27.

    The shares of Supriya Lifescience will list on the BSE and the National Stock Exchange on December 28.

    The company will use the proceeds from the fresh issue to meet capital expenditure requirements and repay debt, besides other general corporate purposes.
    Source - Money Control