Supriya Lifesciences made a stellar stock market debut on Tuesday. The stock opened for trading at Rs 425 on the BSE compared to its issue price of Rs 274 per share, marking an upside of 55 per cent from the issue price. On the National Stock Exchange, Supriya Lifesciences shares opened for trading at Rs 421, up 54 per cent from the IPO price.
Supriya Lifesciences shares were in very high demand during the three-day share sale via initial public offering (IPO) which ended on December 20. The IPO in total was subscribed 71.51 times, portion reserved for retail investors was subscribed 56 times, portion set aside for Qualified Institutional Buyers (QIBs), which include large investors like banks, financial institutions, insurance companies and foreign institutional investors (FIIs), was subscribed 32 times and pie set aside for Non Institutional Investors was subscribed 161 times.
Supriya Lifesciences raised Rs 700 crore from the IPO which consisted of fresh issue of Rs 200 crore and an offer for sale worth Rs 500 crore.
A retail investor was allowed to invest minimum one lot of 54 shares up to maximum of 13 lots. Axis Capital and ICICI Securities were the book running lead managers to the issue while Link Intime was the registrar.
Supriya Lifescience is engaged in the manufacturing of Active pharmaceutical ingredients (APIs). The company has been the largest exporter of Chlorpheniramine Maleate and Ketamine Hydrochloride from India between Fiscal 2017 and 2021. The company is also one of the largest exporters of Salbutamol Sulphate from India in FY 2021 in terms of volume.
The company will use the proceeds from the IPO for funding capital expenditure requirements of the company, repayment and pre-payment, in full or part, of certain borrowings availed by the company and for general corporate purposes, the company said in red herring prospectus.
As of 10:20 am, Supriya Lifesciences shares traded 44 per cent higher from issue price at Rs 396.