IPO Note : Sudeep Pharma Ltd by Geojit Investments Ltd
A leading specialized pharma ingredient player...
Sudeep Pharma Ltd. (SPL), established in 1989, is a technology-led manufacturer of excipients and specialty ingredients serving the pharmaceutical, food, and nutrition industries. With a global footprint spanning the U.S., South America, Europe, the Middle East, Africa, and Asia-Pacific, SPL operates three manufacturing facilities in Vadodara, Gujarat, and, following its acquisition of NSS ( Nutrition supplies and Services) in 2025, an additional facility in Ireland. As of June 30, 2025, the company’s total annual production capacity stands at 72,246 metric tonnes.
* The global pharmaceutical excipients and specialty food ingredients markets together are projected to grow steadily, with excipients rising from USD 10.4bn in 2024 to about USD13bn by 2029 (CAGR ~4.7%), and specialty food ingredients expanding from USD 85bn in 2024 to USD 118bn by 2029 (CAGR ~6.8%).
* Sudeep Pharma is the only Indian company and among a select few globally with USFDA certification for mineral-based ingredients, and one of just nine worldwide holding both CEP (Council of Europe) and WC (written confirmation) certifications for Calcium Carbonate.
* Over FY23–FY25, revenue/ EBITDA/ PAT grew steadily at a CAGR of 8%/46%/ 49% driven by favourable business mix and improving operating leverage.
* SPL has been rapidly expanding its high margin speciality ingredients segment, which contributed 34% to revenue in Q1FY26 vs. ~ 17% in FY22.
* SPL operates 3 manufacturing units across the country, running at ~46% capacity utilization in FY25—indicating significant headroom to increase topline as utilisation picks up.
* The 3 year average RoE is healthy at 36% (FY23-25), indicating capital efficiency, along with a comfortable debt-to-equity ratio at 0.2x in FY25.
* SPL serves over 1,100 customers- including Pfizer, Intas, Mankind, Aurobindo, Alembic, Merck and Danone- with an average relationship tenure of more than seven years, reflecting strong customer stickiness and sustained revenue visibility.
* SPL intends to expand into the high-growth battery-grade mineral business for electric vehicles and energy storage systems, providing potential for diversification.
* At the upper price band of Rs 593, SPL is available at a P/E of 48x (FY25 diluted basis), which appears to be fairly priced. The company is wellpositioned for sustained long-term growth, supported by robust operational performance, the NSS acquisition that strengthens its European footprint in infant nutrition and formulations, and its planned foray into the high-growth battery-grade minerals segment. Coupled with a strong balance sheet, dedicated R&D focus, and continued product innovation, SPL presents a compelling long-term story. We therefore assign a SUBSCRIBE rating for investors with a medium- to long-term investment horizon.
Purpose of IPO
The offer comprises a fresh issue of Rs 95cr and an Offer-for-Sale (OFS) of Rs 800cr. The Net proceeds will be used for capital expenditure towards the procurement of machinery for the production line located at Nandesari Facility I ( Rs 75.8cr), and the remaining amount for general corporate purposes
Key Risks
* Pharma and nutraceutical ingredients face strict certification norms, where any non-compliance can immediately halt exports and disrupt business operations.
* With three manufacturing units and one R&D facility concentrated in Vadodara, Gujarat, any regional disruptions could potentially affect operational continuity
Business Operations:
As of June 30, 2025, the company operate in two business verticals, pharmaceutical, food and nutrition; and specialty ingredients, comprising a portfolio of more than 100 products, including excipients, APIs, mineral actives and specialty ingredients and formulations with brands, such as Presscal, Pressmag, Lubriprez, A-comprez, Novelcap, Lipoboost and Cuvamix.
Pharmaceutical, Food and Nutrition Business
The company supplies essential mineral-based ingredients—such as calcium, zinc, and iron—for pharmaceutical formulations and as nutritional fortifiers in food and dietary products, supporting health and regulatory compliance.
Specialty Ingredients Business
Through its Indian material subsidiary, SNPL, the company develops specialty ingredients for food, nutrition, pharmaceutical, and health supplement sectors, offering encapsulated ingredients, liposomal products, premixes, granulates, spray-dried powders, and triturates.
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SEBI Registration Number: INH20000034
