Private equity major TPG Capital-backed Sai Life Sciences’ initial public offering closes today. The IPO, which was launched with a price band of ₹522-549, was subscribed 1.25 times so far. The ₹3,043-crore IPO comprised a fresh issue (₹950 crore) and an offer-for-sale of 3.81 crore shares valued at ₹2,092 crore. The market lot is 27 shares.
Under the OFS, one of the promoter entities, Sai Quest Syn Private Limited, and investor shareholders, TPG Asia VII SF Pte Ltd and HBM Private Equity India, will divest part of their stakes. At present, Sai Quest Syn holds a 5.61 per cent stake in the company, TPG owns 39.69 per cent, and HBM Private Equity India owns 5.5 per cent.
While the retail quota is 35 per cent and QIB is 50 per cent, the NII (non-institutional investor) category, which includes HNIs, accounts for 15 per cent of the total. The QIB portion was subscribed 3.32 times, even as the IPO saw only a lukewarm response from retail investors and HNIs. The retail portion was undersubscribed at 0.42 times, while the NII portion was subscribed at 0.59 times.
The Hyderabad-based company on Tuesday raised ₹913 crore from anchor investors as part of the IPO process. According to the circular, Sai Life Sciences has allotted more than 1.66 crore equity shares to 63 funds at ₹549 apiece. The anchor investors include INQ Holding LLC, SmallCap World Fund Inc, Fidelity Funds, Abu Dhabi Investment Authority, Goldman Sachs Funds, BlackRock, Nippon India Mutual Fund (MF), HDFC MF, Axis MF and Kotak Mahindra MF.
Of the IPO proceeds from the fresh issue, ₹600 crore will be allocated for debt repayment, and a portion will be used for general corporate purposes.
Sai Life Sciences is one of the largest integrated CRDMOs among listed Indian peers in terms of revenue as of FY24, serving as a one-stop platform for discovery, development and manufacturing.
The company has established capabilities across drug discovery, development and manufacturing value chain. This provides several advantages including the ability to provide end-to-end support from discovery to commercialisation as well as multiple entry points to acquire customers in intermediate stages of the discovery to commercialisation journey. By establishing and maintaining connections through the drug development process, the company builds long- standing relationships with its clients.
According to the F&S report, the India CRDMO market (contract research, development and manufacturing organisation) was among the fastest growing in the APAC during 2018-2023.
Kotak Mahindra Capital Company, IIFL Securities, Jefferies India Private Limited and Morgan Stanley India Company Private Limited are the book-running lead managers for the company’s IPO.
