Upcoming IPO: Sai Life Sciences, which develops and manufactures small-molecule new chemical entities (NCEs), will launch its initial public offering (IPO) on Wednesday, December 11, and will remain so until Friday, December 13. The book-built issue combines a fresh issue of shares of ₹950 crore and an offer for sale (OFS) of 3.81 crore shares. The cumulative issue size is about ₹2,940-3,043 crore.
Sai Life Sciences IPO price band has been fixed at ₹522-549 per share. Investors can bid in lots, and one lot contains 27 shares. This means the minimum amount required for investment for retail investors is ₹14,823.
Sai Life Sciences IPO details
The IPO will open on Wednesday next week and close on Friday. Kotak Mahindra Capital, IIFL Capital Services, Jefferies India, and Morgan Stanley India are the book-running lead managers for the issue. Kfin Technologies Limited is the registrar of Sai Life Sciences IPO.
The company is expected to finalise the share allotment on Monday, December 16. Successful bidders can expect the shares in their accounts on the next day, Tuesday, December 17. Those who fail to get the allotment may get the refund on Tuesday.
The listing date for Sai Life Sciences stock is Wednesday, December 18. It will list on the NSE and the BSE.
Some 35 per cent of the total issue size is reserved for retail investors, 50 per cent for qualified institutional buyers (QIBs), and 15 per cent for non-institutional investors (NIIs).
The company wants to utilise the net proceeds from the issue for repayment or prepayment of certain outstanding borrowings. Some part of the funds will be used for general corporate purposes.
Sai Life Sciences business overview
According to the company’s Red Herring Prospectus (RHP), it provides “end-to-end services across the drug discovery, development, and manufacturing value chain for small-molecule new chemical entities (NCE) to global pharmaceutical innovator companies and biotechnology firms.”
“We are the fastest-growing Indian CRDMOs (contract research, development, and manufacturing organisations) among listed Indian peers in terms of revenue CAGR as well as EBITDA CAGR from Financial Year 2022 to Financial Year 2024. As of September 30, 2024, our CDMO (contract development and manufacturing organisation) product portfolio included more than 170 innovator pharmaceutical products, including 38 products that were supplied for the manufacturing of 28 commercial drugs,” the company said.
In the last financial year (FY24), the company earned a profit after tax (PAt) of ₹82.81 crore, higher than the PAT of ₹10 crore and ₹6.23 crore in FY23 and FY22, respectively. The company’s profit after tax for the six months of the current financial year stood at ₹280.12 million.
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