Supriya Lifescience Ltd : Subscribe

Supriya Lifescience Ltd : Subscribe
  • Date

    16 Dec 2021 - 20 Dec 2021

  • Price Range

    ₹ 265 - ₹ 274

  • Minimum Order Quantity

    54

  • (D) RHP

    View

Supriya Lifescience Limited (SLL) is one of the key Indian manufacturers and suppliers of active pharmaceuticals ingredients (“APIs”), with a focus on research and development. As of October 31, 2021, they have niche product offerings of 38 APIs focused on diverse therapeutic segments such as antihistamine, analgesic, anesthetic, vitamin, anti-asthmatic and anti-allergic. From April 1, 2020 until October 31 2021, their products were exported to 86 countries to 1,296 customers including 346 distributors. Their products are registered with various international regulatory authorities such as USFDA, EDQM, NMPA (previously known as SFDA), KFDA, PMDA, TGA and Taiwan FDA. As of October 31 , 2021, they have filed 14 active DMFs with USFDA and eight active CEPs with EDQM, for their API products in therapeutic areas such as antihistamine, analgesic, anesthetic, vitamin, antiasthmatic and anti-allergic. Their business operations are supported by a modern manufacturing facility located in Parshuram Lote, Maharashtra, which is approximately 250 km from Mumbai, Maharashtra.
Objects of the issue:
The IPO proceeds shall be used towards the following purposes
  • Funding capital expenditure requirements of the company( INR 923 Mn)
  • Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the company (INR 600 Mn)
  • General corporate purposes
Investment Rationale:

Significant scale with leadership position across key & niche products

The company has significant presence in the API market with niche product offerings of 38 APIs as of 31 October 2021. The company is the largest exporter of Chlorpheniramine Maleate(40-45%) and Ketamine Hydrochloride(60-65%) from India. The company is also among the largest exporter of Salbutamol Sulphate (30-40%) from India .Further , the Company also contributed to 25-30% of exports of Vitamin B2 (Riboflavin, Lactoplavin) and its salts from India in FY17 to FY21 in terms of volume. As can be seen here the Company is really good at identifying, developing and scaling up of generic molecules (off-patent) from existing therapeutic segments (Their demand is high in volume and low in competition) and thus drive relatively higher returns from investments .