Supriya Lifescience IPO listing on Tuesday; analysts expect strong market debut

Stock of Supriya Lifescience is set to make a market debut on Tuesday, December 28, 2021. Analysts and Zee Business Managing Editor Anil Singhvi expect strong listing gains for investors.

“We are expecting a strong listing of this company as market sentiments have improved and the IPO witnessed strong subscription numbers. The grey market is indicating a listing gain of more than 50 per cent,” Aayush Agrawal, Senior Analyst, Swastika Investmart Ltd estimates.  

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This is the third IPO since last week which is likely to witness a big listing gains after MapMyIndia and Data Patterns debut. 

Supriya Lifesciences, another good company from the API segment garnered lots of investors' interest on the back of strong financials and attractive valuations, Agrawal further said. 

Similarly, Zee Business Managing Editor Anil Singhvi in his IPO preview had suggested to subscribe for big listing gain with long-term objective. “This is one such IPO that can double investors' money on the listing day as the management has made way for listing gain,” Singhvi had said. 

The Rs 700-crore IPO was subscribed 29 times in the three-day period between December 16-20, 2021. The offer comprises fresh issue of equity shares worth Rs 200 crore and an offer-for-sale of up to Rs 500 crore by its promoter Satish Waman Wagh.   

The issue saw bidding for as many as 42,69,24,594 shares against 1,45,28,299 shares on offer on the final day. The Non-Institutional Investors subscribed most to the issue by 62.45 times in three-day. 

Most of the brokerages had been positive on the issue and suggested to subscribe Supriya Lifescience IPO amid its leadership position across key and niche products. The company is one of the key Indian manufacturers and suppliers of active pharmaceutical ingredients (APIs). 

The company to use net proceeds from the fresh issue for funding capital expenditure requirements, repaying debt and general corporate purposes.