Sudeep Pharma IPO: Check IPO Date, Lot Size, Price & Details

Business Overview:

Sudeep Pharma is a technology driven manufacturer of excipients and specialty mineral ingredients catering to the pharmaceutical, food and nutrition industries, with a focus on supporting the global healthcare ecosystem. The company leverages in-house developed processing capabilities—such as encapsulation, spray drying, granulation, trituration, liposomal preparation and advanced blending—to deliver high-quality, application-specific ingredients aligned to international standards. Over the years, Sudeep Pharma has established a strong domestic foothold and expanded its global presence to nearly 100 countries across the United States, South America, Europe, the Middle East, Africa and Asia-Pacific.

Its business structure is divided into two core verticals. The pharmaceutical, food and nutrition vertical focuses on refined mineral-based single ingredients such as calcium, zinc, iron, magnesium, sodium, potassium and copper, which function as excipients, fortifying agents and additives essential for pharmaceutical formulations and nutrient-enhanced food applications. The specialty ingredients vertical, operated through its subsidiary SNPL, develops technology-led solutions such as micronutrient premixes, encapsulated minerals, liposomal formats, spray-dried ingredients, granulated minerals and triturated blends. These solutions are designed to enhance stability, bioavailability, homogeneity, functionality and process efficiency across dietary supplements, functional foods, infant nutrition and FMCG formulations.

With over 1,100 customers worldwide - including marquee names such as Pfizer, Intas, Mankind, Merck, Aurobindo, Cadila, Micro Labs and Danone, the company has built strong longstanding global partnerships backed by scientific precision, consistent quality and regulatory adherence.

IPO Synopsis:

Objective of the Issue:

• Capital expenditure towards procurement of machinery for the production line located at Nandesari Facility I - ₹ 75.81 Crores
• General corporate purposes

Strengths:

• Strong Customer Relationships and High Repeat Business:
  The company has served over 1,100 customers, including marquee names such as Pfizer, Intas, Mankind, Merck, Alembic, Aurobindo, Cadila, Micro Labs, IMCD Asia and Danone. Customer loyalty remains robust, with repeat business contributing 83.17%, 78.25%, 79.84% and 62.96% of revenues in Q1FY26, FY25, FY24 and FY23, respectively. The average relationship tenure with the top five customers is strong at 7.08 years, and revenue concentration remains manageable with the largest customer contributing 14.58% in Q1FY26 and below 12% in prior fiscals.
• Market Leadership with a Diversified Portfolio in a High-Barrier Industry:
  The company is among India’s leading manufacturers of specialty food ingredients and mineral-based excipients, offering a wide range of products including encapsulated preservatives like sorbic acid and calcium propionate. Its revenue mix remains diversified, with pharma minerals contributing an average of 65% and specialty ingredients 32% over the past three fiscals. Its presence in categories requiring high regulatory compliance and technical know-how creates strong entry barriers and strengthens its market position.
• Advanced and Globally Compliant Manufacturing Capabilities:
  Sudeep Pharma operates four manufacturing facilities with 12 production lines as of June 30, 2025. Two facilities in Gujarat cater to pharmaceutical and food-grade minerals, while one facility focuses entirely on specialty ingredients. Its capabilities are strengthened by six proprietary technologies across encapsulation, spray drying, granulation, trituration, and liposomal preparations and blending - critical for high-quality infant and clinical nutrition applications. Collectively, the facilities have secured 35 global accreditations and certifications, reflecting robust compliance and quality systems.
• Experienced Promoters and Strong Leadership Bench:
  The company is led by Promoter and Managing Director Sujit Jaysukh Bhayani, who brings over 25 years of industry experience and has been pivotal in scaling operations and expanding global reach. The senior management team further strengthens execution capability with deep expertise across R&D, operations, product development and finance, ensuring strong strategic direction and operational excellence.

Risks:

• Elevated Trade Receivables and Working Capital Stress:
  The company’s receivable cycle has increased materially, with average receivable days rising from 79 days in FY23 to 133 days in FY25. Trade receivables as a share of sales have also increased, reaching 35% in FY25. This growing working capital requirement exposes the business to higher credit risk from customers and may pressure short-term liquidity if not managed efficiently.
• Raw Material Supply Dependence and Cost Volatility:
  Raw materials accounted for 41% of total costs in FY25, indicating meaningful exposure to input price volatility. The company sources materials from both domestic and international vendors, with foreign sourcing ranging widely from 25 - 52% depending on product mix. Further, its top five suppliers contribute 50 - 60% of total procurement, creating concentration risk and potential vulnerability to supply disruptions or pricing pressure.
• Geographic Concentration of Manufacturing and R&D Facilities:
  Sudeep Pharma operates four manufacturing facilities, three of which are concentrated in Vadodara, Gujarat, alongside a dedicated R&D center in the same region. With an additional plant under commissioning in Nandesari, the geographical clustering further heightens exposure to region-specific political, environmental, labor, or regulatory disruptions. Any adverse event could necessitate additional capital expenditure or operational realignment.
• Export Dependence with Tariff and Currency Risk Exposure:
  With over 50% of revenue generated from exports to the Middle East, North America, Europe, and Asia, the company is exposed to evolving global regulatory frameworks, trade policy changes, and geopolitical risks. Currency fluctuations also pose a significant challenge, as adverse exchange rate movements could impact profitability. Effective hedging and regulatory compliance are essential to mitigate these risks.

Financial Snapshot (Rs. In Crores):

Conclusion:

The excipients and nutraceuticals industry is expected to grow at 5 – 7% rates till 2030, driven by rising health awareness, income levels, and demand for high-quality formulation ingredients. The company’s specialized business model focused on niche, high-purity excipients - positions it well within this expanding landscape.

Although its addressable market is relatively small, the niche nature of its products, long customer qualification cycles, and limited competition provide long-term stability.

Supported by improving financial performance and a disciplined expansion approach, the IPO offers a favorable near-term opportunity.

We recommend subscribing the IPO for Listing Gains.

IPO Allotment

Find out the allotment status for the Sudeep Pharma IPO by checking the MUFG Intime India IPO Application Status page.