Sudeep Pharma IPO Sees GMP Slide From 20% To 14%, Subscription Soars To Over 8.6 Crore Bids Against 1.06 Crore Shares

Mumbai: Sudeep Pharma’s initial public offering (IPO) is witnessing a noticeable shift in grey market sentiment as the issue enters its final day of bidding. The grey market premium (GMP)—which reflects investors’ willingness to pay above the official issue price—has fallen to nearly 14 percent, down from over 20 percent merely two days earlier.

Market observers such as Investorgain and IPO Watch are currently quoting the GMP between 14 percent and 14.33 percent over the upper price band of Rs 593 per share. This premium is expected to fluctuate further as the listing date approaches.

Strong Subscription Despite Lower GMP

Interestingly, even as the GMP weakens, overall demand for the IPO remains strong. As of 11 a.m., the offering had attracted bids for 8.64 crore shares, far exceeding the available 1.06 crore shares, according to NSE data. Investor interest appears robust across categories.

The non-institutional investor (NII) segment shows remarkable enthusiasm, with subscription exceeding 22 times its quota. Retail investors have bid nearly 7 times their allotted portion. Meanwhile, the qualified institutional buyer (QIB) category has recorded a more moderate subscription level of around 16 percent, with expectations of higher participation later in the day.

Issue Structure and Fund Utilisation

Sudeep Pharma’s IPO is valued at Rs 895 crore, consisting of a Rs 95 crore fresh issue and an Rs 800 crore offer-for-sale (OFS) by existing promoters. The subscription window opened on November 21 and is scheduled to close today. For retail investors, the minimum application size was fixed at 25 shares.

As per the timeline, allotment is likely on November 26, followed by the listing on November 28. The company plans to allocate Rs 75.81 crore from the fresh issue for machinery purchases at its Nandesari facility in Gujarat, with the remaining funds set aside for general corporate purposes.

Sudeep Pharma, known for its technology-driven excipients and specialty ingredients, continues to strengthen its role in global pharmaceutical, food and nutrition supply chains.