 "Sai Life Sciences IPO: Worth your money? Check GMP, price band, and more")
Sai Life Sciences IPO opens today: The initial public offering (IPO) of Sai Life Sciences opens for subscription today, Wednesday, December 11, 2024. Through the public offering, the company seeks to raise Rs 3,042.62 crore. Sai Life Sciences announced that it had already raised Rs 912.79 crore from anchor investors during the bidding concluded on December 10, 2024. Here are the key details of the Sai Life Sciences IPO:
Sai Life Sciences IPO issue size
The Sai Life Sciences IPO comprises a fresh issue of up to 17,304,189 equity shares and an offer for sale (OFS) with promoters and shareholders divesting up to 38,116,934 equity shares, each with a face value of Re 1. Sai Quest Syn is the promoter participating in the OFS. Among other shareholders, TPG Asia VII SF, HBM Private Equity, Bharathi Srivari, Anita Rudraraju Nandyala, Raju Penmasta, Dirk Walter Sartor, Jagdish Viswanath Dore, Rajagopal Srirama Tatta, and K Pandu Ranga Raju will be taking part in the OFS. Also Read: Mobikwik IPO details
Sai Life Sciences IPO price band, lot size
The public offering is available at a price band of Rs 522–549 apiece, with a lot size of 27 shares. Investors can bid for a minimum of 27 shares and in multiples thereof. A retail investor would require a minimum of Rs 14,823 to bid for one lot or 27 shares of Sai Life Sciences IPO, whereas a maximum retail investor can apply for up to 13 lots, totaling 351 shares, with an investment amount of Rs 192,699.
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Sai Life Sciences IPO grey market premium (GMP)
Meanwhile, the company’s unlisted shares were commanding a decent premium in the grey market ahead of the public offering. Sai Life Sciences shares were trading at Rs 580 apiece, reflecting a grey market premium (GMP) of Rs 35 or 5.65 per cent per share against the upper end of the IPO price band of Rs 549, according to sources tracking unofficial market activities.
Sai Life Sciences IPO allotment date, listing date
The subscription window to bid for the public offering of Sai Life Sciences will tentatively close on Friday, December 13, 2024. Following the closure of the subscription window, the basis of allotment for Sai Life Sciences IPO shares is likely to be finalised on Monday, December 16, 2024. The successful allottees will receive the company's shares in their demat accounts by Tuesday, December 17, 2024.
Also Read: Purple United Sales IPO details Sai Life Sciences shares are scheduled to list on the BSE, and NSE tentatively on Wednesday, December 18, 2024.
Sai Life Sciences IPO registrar, lead managers
KFin Technologies serves as the registrar for the Sai Life Sciences IPO, while the book-running lead managers include Kotak Mahindra Capital Company, Jefferies India, Morgan Stanley India Company, and IIFL Securities.
Sai Life Sciences IPO objective
In its Red Herring Prospectus (RHP), Sai Life Sciences stated that it would not receive any proceeds from the offer for sale, as each of the selling shareholders will be entitled to their respective portion of the proceeds after deducting offer-related expenses and applicable taxes.
However, the company intends to utilise the net proceeds from the fresh issue toward funding the repayment or prepayment, in full or in part, of certain outstanding borrowings availed by the company, as well as for general corporate purposes.
Should you subscribe to Sai Life Sciences IPO? Swastika Investmart - Neutral
Analysts at Swastika Investmart have assigned a neutral rating to the public offering of Sai Life Sciences. According to the analysts, its financial performance has been positive, with a sharp rise in profitability. However, the high proportion of OFS provides limited direct benefits to the company. "The IPO is significantly overvalued," said the analysts, adding, "Given the high valuation and limited direct benefits to the company from the IPO, a cautious approach is recommended."
Aditya Birla Money - Subscribe for long-term
Analysts at Aditya Birla Money have also recommended subscribing to the public offering for the long-term perspective. "We are confident about the industry growth with a structural shift due to supply chain diversification by the US, irrespective of the passage of the Biosecure Act," wrote the analysts in their research note. "The prospects of Sai Lifesciences are aligned to capture this opportunity, and we recommend subscribing for the long term to the IPO."
BP Equities - Subscribe for long term
Brokerage firm BP Equities, in its report, has recommended subscribing to the issue for a long-term investment horizon. "Although the company may seem slightly overvalued compared to its closest peer, the company has delivered revenue/Ebitda/PAT CAGR of 29.8 per cent/ 53.4 per cent/264.7 per cent, respectively, between FY22-FY24," said the brokerage.
Further, repayment of debt from the proceeds of the issue, the brokerage believes, will reduce finance costs by approximately Rs 56 crore, thus augmenting profitability going forward.
About Sai Life Sciences
Sai Life Sciences is an innovator-focused contract research, development, and manufacturing organisation. It provides end-to-end services across the drug discovery, development, and manufacturing value chain for small molecule new chemical entities (NCEs) to global pharmaceutical innovators and biotechnology firms.