IPO Watch: Sudeep Pharma Files Draft Papers with SEBI to Raise Funds via IPO

In a fresh addition to the primary markets, Sudeep Pharma Ltd, a leading manufacturer of mineral-based pharmaceutical ingredients, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). The move signals the company’s intent to unlock value, expand its operations, and strengthen its market position amid a rising demand for specialty pharmaceutical ingredients in both domestic and international markets.

IPO Details: Mix of Fresh Issue and OFS

According to the draft documents filed with SEBI, the IPO consists of a fresh issue of equity shares worth ₹400 crore, and an offer-for-sale (OFS) of up to 8.5 million shares by existing shareholders, including promoters and early investors. The exact size of the IPO will be determined closer to the launch, depending on market conditions and regulatory approval.

While the fresh issue proceeds will be used primarily for capacity expansion, debt repayment, and general corporate purposes, the OFS component will allow early backers to partially exit and unlock value.

Company Overview: A Niche Pharma Ingredient Player

Founded in 1989, Sudeep Pharma is known for its leadership in manufacturing mineral-based excipients and Active Pharmaceutical Ingredients (APIs) such as calcium phosphates, carbonates, and gluconates. The company has evolved into a key supplier to the pharmaceutical, nutraceutical, food, and cosmetic industries.

With a robust domestic presence and exports to over 30 countries, Sudeep Pharma has positioned itself as a critical player in global supply chains. It operates two manufacturing facilities in Gujarat and is in the process of setting up a third plant in Dahej.

“The IPO will enable us to accelerate our next phase of growth and widen our export footprint, especially in the regulated markets of Europe and North America,” said Vimal Patel, Managing Director of Sudeep Pharma, in a press release.

Sector Trends: Specialty Pharma Gaining Traction

The Indian pharmaceutical sector, valued at over $65 billion, continues to see strong traction in exports and contract manufacturing. Within this space, mineral-based APIs and excipients are witnessing rising demand due to stricter global quality standards and increasing use in functional formulations.

“Companies like Sudeep Pharma, which are vertically integrated and operate in niche chemical formulations, are increasingly drawing investor interest,” said Radhika Mehta, Pharma Analyst at MK Investment Advisors. “Their role in the pharma value chain is essential but often overlooked. A public listing will bring more visibility to such firms.”

Financials and Performance Snapshot

As per the DRHP, Sudeep Pharma reported a revenue of ₹612 crore in FY24, growing at a CAGR of 18.7% over the past three years. Its net profit stood at ₹83 crore, indicating a healthy net margin of 13.5%. The company maintains a lean balance sheet with a debt-to-equity ratio below 0.5, and ROCE (Return on Capital Employed) at 22%.

Analysts believe these metrics make Sudeep Pharma a financially stable and well-managed player in the mid-cap pharma segment, particularly attractive to institutional investors seeking exposure to upstream pharma businesses.

Merchant Bankers and Listing Plans

The IPO is being managed by ICICI Securities, Axis Capital, and JM Financial as the book-running lead managers (BRLMs). Post regulatory approvals, the equity shares will be listed on BSE and NSE.

Market sources expect the IPO to hit the markets by Q3 FY26, subject to SEBI’s nod and favourable market sentiment.

Investor Outlook: Valuation and Sentiment

While valuation details are yet to be disclosed, analysts expect Sudeep Pharma to be priced attractively to appeal to both institutional and retail investors. With India's capital markets currently in a consolidation phase, quality IPOs with sectoral tailwinds are likely to see strong traction.

“Sudeep Pharma’s differentiated business model, clean financials, and export orientation give it a compelling edge. Assuming fair pricing, the IPO could receive robust interest, especially from long-term investors looking to ride the India Pharma growth wave,” said Ashwin Desai, Partner at Apex Value Research.

Market Context: IPO Activity Picking Up

Sudeep Pharma’s filing comes at a time when India’s IPO markets are gradually regaining momentum after a period of volatility. After a cautious first quarter, several companies in the pharma, manufacturing, and technology sectors have lined up IPOs, signalling renewed confidence among promoters and investors alike.

Over ₹45,000 crore has been raised through IPOs so far in 2025, and market experts estimate another ₹60,000–₹70,000 crore could be mobilized in the second half, assuming macroeconomic stability.

With a strong operational track record, expanding global footprint, and solid financials, Sudeep Pharma's proposed IPO is one to watch. As the company moves towards listing, investor appetite will hinge on broader market dynamics, pricing strategy, and institutional participation.

If executed well, the IPO could mark a new chapter of growth and visibility for Sudeep Pharma, while offering investors exposure to a resilient and growing niche in the pharma ecosystem.