Supriya Life soars another 20% a day after debut; up 71% over issue price

Supriya Lifescience has a niche product portfolio of 38 APIs with focus primarily on diverse therapeutic areas.

Shares of Supriya Lifescience (SLL) surged 20 per cent to Rs 468.40 on the BSE in Wednesday’s intra-day trade, after the company made a strong stock market debut on Tuesday. With today’s rally, the stock of the pharmaceuticals company has zoomed 71 per cent against its issue price of Rs 274 per share.

At 01:12 pm; SLL was up 17 per cent at Rs 454.75, as compared to 0.03 per cent decline in the S&P BSE Sensex. A combined 15.3 million equity shares had changed hands on the NSE and BSE.

On Tuesday, SLL made a strong market debut, with its shares having ended at Rs 390.35, 42 per cent higher over its issue price on the BSE. The stock had opened at Rs 425, 55 per cent higher against its issue price.

SLL is one of the key Indian manufacturers and suppliers of active pharmaceuticals ingredients (APIs) and had garnered investors' interest on the back of strong financials and attractive valuations. The IPO had received a strong response, which was subscribed 71.51 times.

SLL intends to achieve operational excellence in terms of cost and production efficiency. Its manufacturing facilities and process are fully integrated with multi-purpose operational and scale-up abilities. The company believes that its advanced manufacturing facility and research and development capabilities, along with ongoing expansion efforts, will help it to reduce production cost, increase production and achieve economies of scale.

SLL has a niche product portfolio of 38 APIs with focus primarily on diverse therapeutic areas. It has consistently been India’s largest exporter of certain niche products with well-balanced presence between regulated and semi/non-regulated markets.

“We like Supriya for its niche product portfolio, backward integrated business model and robust financials. It is well placed to tap opportunity in the pharma API market given its strong pipeline focused on further diversification,” said Sneha Poddar, AVP Retail Research, Motilal Oswal Financial Services.

In the last 3-5 years, the API and specialty chemical industry have been darling for investors, and we believe that this trend will continue for several years. In the long run, investors should hold the stock, said Santosh Meena, Head of Research, Swastika Investmart, post the listing of SLL.