Supriya Lifescience IPO: Supriya Lifescience files DRHP to raise Rs 1,200 crore via IPO

NEW DELHI: Mumbai-based drug maker Supriya Lifescience has filed a draft red herring prospectus (DRHP) with capital markets regulator Sebi to float an initial public offering (IPO). The company is planning to raise Rs 1,200 crore from the primary market.

According to the prospectus, the IPO consists of a fresh issue of shares worth Rs 200 crore and an offer of sale (OFS) of shares worth up to Rs 1,000 crore held by its promoter Satish Waman Wagh. The face value of each share is Rs 2.

Proceeds from the issue will be used for capital expenditure requirements worth Rs 85.38 crore.

The company aims to expand existing manufacturing facilities at its main plant at Lote, Maharashtra, and to continue investing in existing manufacturing technologies to build new capabilities to support production.

The remaining proceeds will be used for repayment and/or pre-payment in full or in part of certain borrowings of Rs 67 crore availed by the company and towards general corporate purposes.

For the financial year ended March 31, 2020, the total income of the company stood at Rs 322.71 crore, as against Rs 285.86 crore for the previous year. Net profit was at Rs 73.37 crore in FY20 as against Rs 39.42 crore in the previous year.

For the nine-month period till December 31, 2020, the company logged a net profit of Rs 76.19 crore and revenue of Rs 267.92 crore amid a sharp fall in the cost of raw materials, components and stores consumed.

The company has appointed

and Axis Capital as book running lead managers (BRLMs) to the issue. Link Intime India is the registrar. Shares will be listed on stock exchanges BSE and NSE.

The company has reserved 75 per cent of the issue for qualified institutional buyers (QIB), up to 15 per cent for non-institutional investors, and up to 10 per cent for retail bidders, according to the DRHP.

Supriya Lifescience is a key manufacturer and supplier of APIs with a focus on research and development.

As of March 2021, the firm had niche offerings of 39 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti-allergic products.

It has been the largest exporter of chlorpheniramine maleate and ketamine hydrochloride from India between FY2017 and FY2020. It is among the largest exporters of salbutamol sulfate from the country in fiscal 2020 in terms of volume.