India’s Supriya Lifescience fixes IPO price band
By Vinu Lal
11:49, 13 December 2021
India’s active pharmaceutical ingredients (API) manufacturer Supriya Lifescience has fixed its per-share price band ahead of its initial public offering, according to a company statement. The company has set a price range of INR 265-INR 274 per share for its INR 7bn ($92.6m) initial stake sale to the public.
The Mumbai-based company’s IPO will open for subscription on 16 December 2021 and close on 20 December, it said.
Fresh issue and OFS
Supriya Lifescience’s IPO comprises a fresh issue of shares of up to INR 2bn, as well as an Offer For Sale (OFS) of up to INR 5bn’s worth of shares by existing shareholders, according to the Red Herring Prospectus (RHP or final papers) that the company has filed with the domestic market regulator.
The company will use INR 923m of the net proceeds from the fresh issue to fund the company’s capital expenditure and another INR 600m for repayment of debt. An undisclosed amount would be used for general business purposes, it said.
The firm would also look at raising funds from anchor investors ahead of its IPO.
A leading Indian supplier
The company is a manufacturer and supplier of APIs, with a focus on research and development. As of 31 October 2021, Supriya Lifescience has a product offering of 38 APIs, focused on therapeutic segments such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti-allergic.
The company is India’s largest exporter of chlorpheniramine maleate and ketamine hydrochloride, contributing 45%-50% and 60%-65% of exports from India between FY2017 and FY2021 respectively. It is also among India’s largest exporters of salbutamol sulphate, contributing 31% of exports in FY2021 in volume terms, it said in its final IPO papers, quoting a report by Indian S&P Global subsidiary CRISIL.
ICICI Securities and Axis Capital are the managers to the issue. Following the IPO, the company intends to list its shares on both the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE).
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