IPO Review: All You Need to Know about Sudeep Pharma’s ₹895 Cr IPO

Sudeep Pharma Limited, a specialized player in making essential ingredient minerals and specialty additives for the global pharma, food, and nutrition industries, has launched its IPO worth ₹895 crore. The IPO price is ₹563-₹593 per share, and so far, the unofficial market indicator (GMP) is ₹122, showing a possible 20.6% gain over the issue price. The IPO is open from November 21 to November 25, 2025, and the company might start trading on the stock market around November 28, 2025.

This blog will take you through everything you need to understand about this company and its IPO, what it does, why it needs the money, its strengths and risks, and how it compares with other companies.

IPO Overview

• IPO Date: November 21 to November 25, 2025
• Total Issue Size: ₹895 crore
• Price Band: ₹563 to ₹593 per share
• Minimum Investment: ₹14,825
• Lot Size: 25 Shares
• Tentative Allotment Date: November 26, 2025
• Listing Date: November 28, 2025 (Tentative)
• GMP: The GMP for the Sudeep Pharma IPO is ₹122, reflecting a 20.6% gain over the issue price, according to Chittorgarh.com.

Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

What Does Sudeep Pharma Do?

Sudeep Pharma is like a master chef for a huge global kitchen. It creates tiny, pure ingredients that go into medicines and healthy foods. For example, it produces minerals like iron and calcium that are used to make pills, baby formula, and dietary supplements. These are called "excipients" (inactive ingredients that help medicines work better).

Besides, the company makes advanced ingredients that help solve tough problems, for example, coating nutrients to hide their bad taste or making sure they stay stable in food. A new area it is exploring is making special materials for electric vehicle (EV) batteries, which could be a future growth area for the company.

The entire process involves finding raw materials, making the ingredients in factories, researching new products, and selling worldwide. It has four factories in India and Ireland that produce over 100 different products and serve more than 1,100 customers across nearly 100 countries, including some of the biggest global companies.

Why Is Sudeep Pharma Raising Money?

Sudeep Pharma plans to raise around ₹895 crore through its IPO. But only ₹95 crore is reserved for the company’s growth; the rest will go to the selling shareholders. Here’s what it wants to do with the fresh issue money:

• Buy New Machines: About ₹75.81 crore will be spent upgrading their facilities to produce more of the mineral ingredients used in medicines and food. This helps them make more products and grow faster.
• Other Goals: The rest will go toward the company's general needs, like funding new ideas, expanding into new markets, and strengthening their working capital (cash needed for daily operations).

Strengths:

• Strong Profit Growth: The company’s profit has grown faster than revenue, at almost 50% annually from FY23 to FY25, showing it is doing well in selling its ingredients.
• High-Quality Products: It has global approval, including the USFDA, meaning its ingredients meet strict standards, which helps it sell everywhere.
• Big Customer Repeat Business: About 83% of its recent income came from customers who keep coming back, showing customers’ trust in the company's products.
• Healthy Margins: It makes good profits from each sale, with a profit margin of over 27%, meaning for every ₹100 earned, the company keeps about ₹27 as profit.

Risks:

• Dependence on Few Customers: A lot of sales (42%) come from just ten customers. Losing even one big customer could hit profits hard.
• Cash Flow Strains: The company is taking longer to get paid (135 days) from customers, which can limit cash for running day-to-day operations.
• Raw Material Risks: Most raw materials come from a few suppliers (top 10 form ~65%), so if supply chains break, production could stop or cost more.
• Geographical Risks: Many factories and R&D (research) facilities are in Gujarat. Any local problems, like natural disasters or policy changes, could impact operations.
• International Business Risks: Over half the sales come from exports. Changes in regulations, taxes, or geopolitical tensions could make exports more difficult or costly.

For detailed information, visit Sudeep Pharma’s official IPO page at INDmoney.

Peer Comparison

While there are no exactly similar companies listed in India now, which compete with Sudeep Pharma, international comparisons show Sudeep Pharma is doing well, showing high profits and efficiency.

Source: RHP, internal calculation

IPO Valuation

The company’s valuation at the IPO price of ₹593 per share, the company’s market capitalization will be about ₹6,700 crore, roughly 13.3 times the company’s sales in FY25. This means investors are willing to pay over 13 times the company's yearly sales to own a part of it.

The post-IPO Price-to-Earnings (P/E) ratio, which tells us how much investors are paying for each rupee the company earns, is about 48.3 times based on FY25 profits. If we use projected earnings for the current quarter (Q1 FY26), this P/E rises to about 54. The higher the P/E, the more expensive the stock.

Another important measure is the Enterprise Value/EBITDA ratio, which indicates how many times the company's profit before taxes and expenses is worth in total. For Sudeep Pharma, this ratio is about 34 times.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

People Behind the Company

The leadership of Sudeep Pharma is mostly held by the promoters with nearly 90% of the company's shares before the IPO, giving them significant control over decisions.

Key leaders include:

• Sujit Jaysukh Bhayani: He is the chairman with 34 years of experience. He has a degree in chemistry from the University of Tulsa in the USA and earned ₹3.52 crore in FY25. He also owns a business that supplies raw materials to pharma companies.
• Shanil Sujit Bhayani: He is the son of Sujit Bhayani, with 8 years of experience. He holds a degree in business from Drexel University in the USA and earned ₹1.75 crore in FY25. Like his father, he is involved in the company’s key decisions.
• Ajay Shrirang Kandelkar: He has 23 years of experience and manages production and growth strategies. His FY25 salary was ₹67.9 lakh.
• Ketan Vyas: He is the chief financial officer with 22 years of finance experience and earned ₹61 lakh in FY25.

Most of these leaders have extensive industry experience, and their long-term vision is driving the company’s expansion into new markets like electric vehicle batteries.

Who’s Making Money from the IPO?

The IPO includes an Offer for Sale (OFS), which means some big existing shareholders sell their shares. These shareholders are part of the promoter group.

For example:

• Sujeet Bhayani HUF (a family trust) bought shares for about ₹0.33 each. Now, they are selling shares worth ₹499 crore, making over 1,800 times their original investment!
• Sujit Bhayani, the company's chairman, bought shares at ₹0.43 each and is selling for over ₹211 crore, earning a huge return on the investment in the early stages.
• Avani Bhayani, another promoter, bought at ₹0.29 per share and is selling at a value of ₹44 crore, making over 2,000 times what she paid. Shanil Sujit Bhayani is also selling shares worth ₹44.48 crore.

Industry Outlook

The industry Sudeep Pharma operates in is growing fast. People everywhere want healthier foods and better medicines; this is driving demand for the ingredients they produce. Governments are also mandating fortification of foods (adding vitamins and minerals), which increases the need for such ingredients.

Economic growth in many countries is shifting manufacturing to regions like India, offering more opportunities. At the same time, stricter rules and raw material prices remain challenges, but companies with high-quality products and efficient operations can thrive.

Analyst View

Sudeep Pharma seems to be growing strongly with impressive profit and revenue gains, especially in the pharma and nutrition ingredients space. It may appeal to investors who look beyond short-term listing gains and focus on medium to long-term potential, particularly as the company expands into areas like electric vehicle materials.

However, it’s worth noting that the company might face challenges from its heavy reliance on a few big customers, which creates risk if any one pulls away. The longer payment cycles, now over four months, could strain cash flow and slow growth plans if not managed well. Also, the IPO appears priced on the higher side, reflecting future growth expectations but leaving little room for quick gains.

For those comfortable with premium valuations and industry risks, Sudeep Pharma may offer exposure to an interesting niche within health and specialty chemicals. But cautious investors should watch how it handles operational risks and payment collections before committing to the long haul.

For a seamless application process, visit the INDmoney IPO page.

Disclaimer

Source: Sudeep Pharma's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.