Why Has Sudeep Pharma’s IPO GMP Declined to 14%?
Click to start listening
Synopsis
Sudeep Pharma's IPO faces a decline in grey market premium, dropping from 20% to 14% as the subscription period concludes. Despite this, the IPO has attracted significant bids, reflecting varied investor interest. As the company gears up for listing, questions arise about market sentiment and future performance.
Key Takeaways
- GMP decrease from 20% to 14% indicates market sentiment.
- IPO bids are significantly high, especially from non-institutional investors.
- Sudeep Pharma aims to utilize funds for machinery procurement.
- IPO valued at Rs 895 crore with a mix of fresh issue and OFS.
- Listing expected on November 28.
New Delhi, Nov 25 (NationPress) The grey market premium (GMP) for Sudeep Pharma’s IPO has decreased as the public bidding period comes to a close on Tuesday.
The GMP, which reflects investors' readiness to pay above the issue price, has dropped to approximately 14 percent from over 20 percent just two days prior.
Even with the downturn in grey market enthusiasm, the IPO has garnered bids for 8.64 crore shares against an offer size of nearly 1.06 crore shares, as per NSE data reported at 11 am.
The non-institutional investor segment has seen subscriptions exceeding 22 times, while retail investors have bid nearly seven times their allotted share quota.
The qualified institutional buyer category has recorded a subscription rate of about 16 percent.
Market analysts from Investorgain and IPO Watch indicate that the current GMP is situated between 14 percent and 14.33 percent above the upper price band of Rs 593 per share.
This premium is anticipated to fluctuate further until the official listing date.
Sudeep Pharma’s IPO is valued at Rs 895 crore, comprising a fresh issue of Rs 95 crore and an offer-for-sale (OFS) of shares worth Rs 800 crore from promoters.
The subscription window opened on November 21 and is set to close today. Retail investors can apply for a minimum lot of 25 shares.
According to the timeline, share allotment is expected on November 26, with the listing anticipated on November 28.
The company intends to allocate Rs 75.81 crore from the fresh issue for acquiring machinery at its Nandesari facility in Gujarat, with the remaining funds designated for general corporate purposes.
Sudeep Pharma is a technology-driven manufacturer of excipients and specialty ingredients catering to the pharmaceutical, food, and nutrition sectors, dedicated to enhancing the global healthcare landscape.
Point of View
I observe that while fluctuations in the grey market premium of IPOs are common, they can influence investor sentiment significantly. Sudeep Pharma's substantial bid levels, despite a declining GMP, indicate a diverse interest among investors, reflecting confidence in the company's long-term prospects.
NationPress
25/11/2025
Frequently Asked Questions
What is the current GMP for Sudeep Pharma's IPO?
The current GMP stands at approximately 14%, down from over 20% just two days ago.
When is the listing date for Sudeep Pharma's IPO?
The listing is expected on November 28.
How much is Sudeep Pharma's IPO valued at?
Sudeep Pharma's IPO is valued at Rs 895 crore.
What is the subscription status for retail investors?
Retail investors have placed bids nearly seven times their allotted quota.
What does Sudeep Pharma specialize in?
Sudeep Pharma is a technology-led manufacturer of excipients and specialty ingredients for the pharmaceutical, food, and nutrition industries.
