Supriya Lifescience witnesses massive buying on day 2 of debut; stock up over 70% from issue price

A day after market debut on Tuesday, the shares of newly-listed Supriya Lifescience jumped 20 per cent for the second straight session on Wednesday. The stock hit an upper circuit at Rs 468.4 per share, surging over 70 per cent from the issue price of Rs 274 per share on the BSE intraday. 

The stock of the pharmaceutical company was listed around 55 per cent premium from the issue price at Rs 425 per share, eventually ending at Rs 390.35 per share, up 42 per cent from the issue price on the BSE.  

Supriya Lifescience is one of the leading manufacturers and suppliers of active pharmaceuticals ingredients (APIs). The initial public offer had received a strong response, as the issue was subscribed by 71.51 times in three-day period between December 16-20, 2021. 

The company had a niche product portfolio of 38 APIs, with focus primarily on diverse therapeutic areas, and it had also been consistently India’s largest exporter of certain niche products with well-balanced presence between regulated and semi/non-regulated markets. 

Amid strong fundamentals and lucrative valuations, majority of the analysts had suggested to hold the stock with a long-term perspective. In this regard, Santosh Meena said the API and specialty chemical industry have been darling for investors in the last 3-5 years.   

"We believe that this trend will continue for several years. As a result of the decent participation from investors, the IPO debuted at a premium of 53 per cent on the NSE. In the long run, investors should hold the stock, while those who applied for listing gains can keep a stop loss of Rs 380 on a closing basis," said Santosh Meena. 

Similarly, Zee Business Managing Editor Anil Singhvi had recommended that investors should hold the shares with a stop loss of Rs 375 and keep trailing.