Sudeep Pharma Limited IPO Research Report

Sudeep Pharma Limited IPO comprises a fresh issue of 16,02,023 equity shares (₹95 crore) and an offer for sale of 1,34,90,726 shares (₹800 crore), totalling ₹895 crore at ₹593 per share (upper price band), with a lot size of 25 shares (minimum ₹14,825). The IPO opened November 21, 2025, closed November 25, allotment finalized November 26, shares credited November 27, and listing scheduled for November 28 on BSE and NSE.

IPO Structure

Pre-issue paid-up equity stands at 11,13,46,602 shares, expanding to 11,29,48,625 post-issue. Promoter holding decreases from 89.37% (9,95,03,523 shares by Sujit Jaysukh Bhayani, Avani Sujit Bhayani, Shanil Sujit Bhayani, Sujeet Jaysukh Bhayani HUF, Riva Resources Private Limited, Bhayani Family Trust) to 76.15%. Anchor portion: 45,27,823 shares (₹268.50 crore); QIB: 50%; NII: 15%; Retail: 35%.

Related Parties

Promoters and group entities dominate transactions. Key shareholders (>5%): Riva Resources Private Limited (41.07%), Sujit Jaysukh Bhayani (25.32%), Sujeet Jaysukh Bhayani HUF (14.01%), Nuvama Private Investments Trust (8.93%). Trade payables to related parties: ₹20.40 million (June 2025), ₹21.59 million (March 2025). Subsidiaries include Sudeep Nutrition Private Limited, Sudeep Pharma USA Inc., Sudeep Pharma B.V., Sudeep Advanced Materials Private Limited, and step-down Nutrition Supplies and Services Ireland Limited (acquired May 22, 2025, for ₹1,363.22 million, goodwill ₹686.95 million).

Promoter Loan Terms

Promoters pledged equity shares to Catalyst Trusteeship Limited as security for debentures issued by Riva Resources Private Limited (debenture trust deeds dated June 24, 2024, with Sujit Jaysukh Bhayani, Shanil Sujit Bhayani). No explicit promoter loans detailed; borrowings primarily bank term loans (e.g., Citi Bank USD loans at 2.50-3.25%, Kotak Mahindra at 9.6%) secured by assets, plant, and corporate guarantees, totaling ₹368.83 million non-current (June 2025). Pledged shares may dilute promoter holding if invoked.

Restated Financials

For period ended June 30, 2025: Revenue ₹1,249.18 million, PAT ₹312.70 million (basic/diluted EPS ₹2.80 on 10,99,38,501 shares), net worth ₹6,883.21 million, total borrowings ₹1,359.72 million. FY2025: Revenue ₹5,019.99 million (up 9.3% YoY), PAT ₹1,386.91 million (EPS ₹12.78), EBITDA ₹1,992.81 million (39.7% margin), RoNW 27.88%. Trade receivables ₹1,875.88 million; ageing shows ₹260.03 million (1-2 years).

Monitoring Agency & Use of Proceeds

No explicit monitoring agency named in RHP excerpts; standard SEBI requirements apply for issues >₹100 crore. Fresh issue proceeds (₹95 crore): ₹75.81 crore for machinery at Nandesari Facility I, ₹12.67 crore general corporate purposes (≤25% of gross proceeds). OFS proceeds to selling shareholders (promoters)

Post-Issue EPS & Implied P/E

Pre-issue diluted EPS (FY2025): ₹12.46 (1,113.47 million shares). Post-issue share capital: 1,129.49 million; assuming full dilution and EPS dilution by fresh issue ratio (~1.43%), post-issue diluted EPS ≈ ₹12.46 × (1,113.47 / 1,129.49) ≈ ₹12.27. At ₹593 upper band, market cap ≈ ₹6,700 crore, implied P/E ≈ 53.55x FY2025 post-issue.

To show the calculation steps and assumptions for post-issue diluted EPS for Sudeep Pharma Ltd. IPO, here is the breakdown based on the data extracted:

Known Data:

• Profit for the year ended March 31, 2025 (PAT): ₹1,386.91 million
• Pre-issue weighted average shares outstanding (diluted): 1,113.47 million shares (including effect of CCPS conversion)
• Post-issue total shares (fully diluted): 1,129.49 million shares (after fresh issue and conversion)
• Fresh issue size: 16,02,023 equity shares offered
• Price per share (upper band): ₹593
• Shares outstanding pre-issue: 11.13 crore (111.3 million, likely converted for EPS in the document to 1,113 million shares after share split and CCPS conversion)
• CCPS converted into equity on 15 Oct 2025 in ratio 1:1 (considered in dilution)

---

Stepwise Calculation:

1. Pre-Issue Diluted EPS Calculation:

2. Post-Issue Shares Outstanding:
   Adding fresh issue shares to existing shares:

3. Assumption: Profit remains constant for calculation
   This is a standard approach where profit is assumed for same period ignoring potential dilution on earnings.
4. Post-Issue Diluted EPS Estimate:

5. Dilution Impact:
   Reduction in EPS due to increase in shares is:

12.46 – 12.27 = 0.19 \,₹ \text{ (about 1.5% dilution)}

Assumptions:

• Profit after tax remains constant post-issue.
• All CCPS have been converted into equity shares as of October 15, 2025.
• Fresh equity shares fully dilute the equity base immediately.
• No consideration for impact on profit from funds raised or expenses incurred from IPO.
• Weighted average shares adjusted for prior share splits and bonus.

Summary:

• Pre-issue diluted EPS ≈ ₹12.46
• Post-issue diluted EPS ≈ ₹12.27
• Post-issue fully diluted shares = 1,129.49 million shares
• Fresh issue shares ~16.02 million fully diluted

This calculation follows typical IFRS/Ind AS standards for diluted EPS and includes CCPS conversions fully, consistent with IPO disclosures and restated accounts.

---

Sudeep Pharma Limited is a technology-driven manufacturer specializing in excipients and specialty ingredients primarily for the pharmaceutical, food, and nutrition sectors. Founded in 1989 and headquartered in Vadodara, Gujarat, India, it produces over 100 products using proprietary processes like encapsulation, spray drying, granulation, trituration, and liposomal preparations. The company has a strong research and development focus with two R&D centers, driving innovations in particle engineering, product shelf-life extension, and nutrient bioavailability enhancement. Sudeep Pharma serves global markets, including the US, Europe, Asia-Pacific, and South America, with a distinguished global customer base including Fortune 500 companies.

The pharmaceutical excipients industry, where Sudeep Pharma operates, is expected to grow significantly, driven by rising demand for generic drugs, innovative drug formulations, personalized medicine, biologics, and biosimilars. Excipients play a critical role in drug stability, bioavailability, and patient-centric formulations such as controlled release and taste-masking. Regulatory pressures for high-purity, safe, and sustainable excipients are boosting the adoption of advanced excipients. India, being one of the leading global producers of generics, has a naturally high demand for excipients and benefits from cost-effective production, though much of the advanced excipient supply still comes from US and Europe. The global pharmaceutical excipients market is forecasted to grow at a CAGR of around 6-8% to exceed $14 billion by 2030.

In addition to pharmaceuticals, Sudeep Pharma serves specialty food and nutrition markets, which are growing due to increased health awareness and demand for plant-based, clean-label, and functional ingredients. The specialty food ingredients market in India is expected to reach about $8.3 billion by 2033, driven by urbanization, rising incomes, and demand for nutritionally enhanced foods including infant and dietary nutrition.

---

Sudeep Pharma’s competitive strengths include its:

• Diversified product portfolio and technology leadership in mineral-based excipients and specialty ingredients.
• Global compliance certifications such as USFDA and WHO-GMP, enabling it to access regulated markets.
• Strong relationships with over 1,100 customers across ~100 countries, including marquee pharma and nutrition companies.
• Focus on proprietary R&D platforms enabling development of high margin, innovative products and commercialized 127 products or variants.
• Experienced promoters and management with deep industry expertise and global market orientation.
  
  The sector is characterized by strong regulatory oversight, increasing R&D investments for novel formulations, and a rising shift towards patient-centric medicines and sustainable excipients. These trends underpin growth opportunities for companies like Sudeep Pharma that combine technology, quality compliance, and global distribution.
  
  In summary, Sudeep Pharma operates at the intersection of pharmaceutical excipients, specialty nutrition ingredients, and related downstream healthcare markets—all sectors poised for robust growth driven by innovation, regulation, and rising global demand. This positions the company well for long-term growth prospects in both domestic and international markets.

Sudeep Pharma Limited, incorporated in 1989 and headquartered in Vadodara, Gujarat, India, manufactures pharmaceutical excipients, specialty food, and nutritional ingredients using proprietary technologies like encapsulation and spray drying across four facilities with 65,579 MT annual capacity as of June 30, 2025. The company serves over 1,100 customers in 100+ countries, focusing on mineral-based products like iron phosphate for infant nutrition, with subsidiaries including Sudeep Nutrition Private Limited, Sudeep Pharma USA Inc., and Nutrition Supplies and Services Ireland Limited (acquired May 2025). Promoters hold 89.37% pre-IPO, including Riva Resources Private Limited (41.07%).​ ​

---

Key Financial Metrics

Metric	Q1 FY26 (Jun 2025)	FY25 (Mar 2025)	FY24	FY23
Revenue from Operations (₹ Mn)	1,249	5,020	4,593	4,287 ​
PAT (₹ Mn)	309	1,387	1,332	623 ​
EBITDA (₹ Mn, 39.7% margin FY25)	N/A	1,993	N/A	N/A ​
Diluted EPS (₹)	2.80	12.78	12.28	5.74 ​
RoNW (%)	N/A	27.88	N/A	N/A ​

Balance Sheet Highlights (₹ Mn)

• Net Worth: 6,883 (Jun 2025), up from prior periods​
• Total Borrowings: 1,360 (Jun 2025); Trade Receivables: 1,876​
• Revenue Split: Exports 59% (₹733 Mn Q1 FY26), Domestic 41%​

Post-IPO (upper band ₹593), market cap ≈ ₹6,700 crore, implied FY25 P/E 53.6x on post-issue EPS ₹12.27. Growth driven by 9.3% YoY revenue rise FY25, global nutrition demand, and capacity expansions.

Sudeep Pharma Limited IPO is considered fundamentally strong due to its leadership in the pharmaceutical excipients and specialty ingredients market, high profitability with FY25 EBITDA margins near 40%, PAT margin around 27.6%, and robust Return on Net Worth of 27.88%.

Technical & Valuation Analysis:

• The IPO price band was ₹563-593, with the upper band implying a market capitalization near ₹6,700 crore.
• Based on FY25 earnings (EPS ~₹12.3), the IPO valuation translates to a high P/E of approximately 45-53x, considered aggressive relative to peers.
• Grey Market Premium (GMP) suggested listing gains circa 16-20%, indicating initial positive market sentiment but limited short-term upside.
• Technical indicators from initial post-listing price data and moving averages signal a cautious buy with limited momentum upside in the short term.

Investment Considerations:

• Strengths include a high-entry-barrier business due to proprietary technologies, global certifications (USFDA, EXCiPACT), and a diversified international customer base including Fortune 500 clients.
• Risks include the aggressive valuation pricing most growth expectations into the IPO price, limiting quick listing gains and positioning it more as a 2-5 year hold for value appreciation.
• The company is expanding capacity and adding new products for regulated markets, supporting mid-to-long-term growth potential.
• Comparison with peers shows premium valuation but justified by superior margins and niche dominance.
  
  Here is a comparison of Sudeep Pharma Limited IPO valuation with listed peers in the pharmaceutical excipients and specialty ingredients sector using key multiples:

Company/Metric	Sudeep Pharma IPO (Post-Issue)	Peers (Industry Range)
Market Cap (₹ Cr.)	~6,700	Varies (mid-large caps)
P/E Ratio (FY25)	45-53x (around 53.55x widely cited)	25-40x typical for nutraceuticals and specialty ingredient players
EV/EBITDA	~34x to 36x (estimates vary 34-40x)	16-21x typical for peers
EV/Sales	~53x (reported in some broker notes)	13-16x industry multiple range

• Observations:
• Sudeep Pharma IPO valuation multiples are notably at the higher end or above typical industry ranges especially on EV/EBITDA and P/E, reflecting a premium for the company’s niche leadership, high margins (~40% EBITDA margin), strong growth prospects, and high-quality customer base.
• Typical nutraceutical ingredient or specialty pharmaceutical ingredient companies trade at 25-40x P/E and 16-21x EV/EBITDA; thus the IPO pricing reflects aggressive value placement relative to peers but justifiable on superior profitability and technology.
• The company claims limited direct listed near-peer comparables in India in the exact niche, which limits benchmarking precision but globally excipients players have varied valuations dependent on scale and capabilities.
• This positioning indicates Sudeep Pharma IPO is priced richly suggesting market expectations for sustained high growth, margin expansion, and strategic advantage in global specialty ingredients. Investors should evaluate this premium against risk tolerance and investment time horizon.
• If seeking listing gains, this valuation makes short-term upside less probable; better suited for long-term play based on market leadership and growth potential.

Most Comparable to Sudeep Pharma by Revenue Mix
 Fine Organics and Anupam Rasayan India emerge as the most comparable listed peers to Sudeep Pharma by revenue mix, given their significant exposure to specialty ingredients for pharma, food, and nutrition sectors alongside chemicals.arihantplus+2​

Revenue Mix Comparison

Company	Pharma/Nutrition	Food/Specialty Additives	Other (Chemicals/Performance)	Total Revenue (Recent FY, ₹ Cr)
Sudeep Pharma	~60-70% (excipients, vitamins/minerals for pharma & nutrition)	~20-30% (food ingredients)	Minimal	502 (FY25) ​
Fine Organics	Significant (pharma intermediates)	28-30% (food additives)	70% plastics/performance chemicals	2,205 (FY24) ​
Anupam Rasayan	23% (life sciences/pharma)	Limited	61% (performance materials/agrochem)	1,101 (Recent) ​
Neogen Chemicals	65-83% (pharma intermediates)	Negligible	Lithium/bromine chemicals (17-35%)	~800+ (Recent) ​

Fine Organics aligns closest with Sudeep’s diversified pharma-food-nutrition split (pharma excipients akin to Fine’s pharma additives, both leveraging specialty formulations). Anupam Rasayan matches on pharma-heavy life sciences but leans more toward performance chemicals. Neogen is pharma-dominant but lacks food/nutrition exposure.valuepickr+3​

Sudeep’s niche (excipients/specialty minerals) lacks exact Indian listed matches, positioning it as a premium play versus these peers’ broader chemical portfolios.

---

Conclusion:

The IPO fits investors seeking exposure to a niche, high-margin pharmaceutical ingredient company with a strong growth outlook but requires patience due to premium initial pricing. Aggressive valuation advises against expecting significant short-term listing returns, favouring long-term investment to realize value from growth and margin expansion.

Investors should also monitor the stock’s technical momentum post-listing for entry timing, balancing fundamentals with market price action signals.

---

aiTrendview Global Disclaimer

1. This document has been generated using artificial intelligence tools solely for educational and training purposes.
2. It does not constitute investment, financial, legal, or tax advice under any jurisdiction, including India.
3. aiTrendview and its associates are not SEBI-registered research analysts, investment advisers, or portfolio managers.
4. All data, projections, and opinions contained herein are automatically compiled from publicly available sources and may contain inaccuracies or omissions.
5. Readers and investors must independently verify all information before making any financial, commercial, or legal decisions.
6. Market values, financial figures, or performance trends mentioned are illustrative and not forward-looking guarantees.
7. No part of this report should be construed as a solicitation, recommendation, or endorsement to buy, sell, or hold any security.
8. aiTrendview, its affiliates, creators, or AI systems assume no liability for any loss, damage, or consequence arising from reliance on this content.
9. Use of this report implies acceptance of full personal responsibility for all actions taken based on its contents.
10. Reproduction or redistribution of this AI-generated material without written consent of aiTrendview is strictly prohibited under international copyright and compliance laws.