Sai Life Sciences IPO: Price Band, Financials, Key Dates, GMP And More—All You Need To Know

Sai Life Sciences Ltd.'s initial public offering is scheduled to open on Dec. 11. The IPO consists of a fresh issue worth Rs 950 crore and an offer for sale of Rs 2,092.62 crore bringing the total issue size to Rs 3,042.62 crore.

The price band for the IPO has been set in the range of Rs 522–549 per share.

The promoters selling their shares include Sai Quest Syn Pvt. Meanwhile, TPG Asia VII SF Pte, HBM Private Equity India are the investors selling their stake in the company.

• Issue opens: Dec. 11.

• Issue closes: Dec. 13.

• Issue price: Rs 522-Rs 549.

• Offer for sale: Rs 2,092.62 crore.

• Fresh issue: Rs 950 crore.

• Total issue size: Rs 3,042.62 crore.

• Lot size: Minimum 27 shares.

The company proposes to utilise the net proceeds towards funding the following objects:

• Repayment/prepayment in full or part, of all or certain outstanding borrowings availed by the company.

• General corporate purposes.

Company 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, to global pharmaceutical innovator companies and biotechnology firms.

As of Sept. 30, 2024, the company's CDMO product portfolio included more than 170 innovator pharmaceutical products, including 38 products that were supplied for manufacturing of 28 commercial drugs.

For financial years 2024, 2023 and 2022 and for the six months ended September 2024, total revenue from operations was Rs 1,465 crore, Rs 1,217.1 crore, Rs 869.5 crore and Rs 675.2 crore, respectively, representing a CAGR of approximately 29.80% from fiscals 2022 to 2024.

While its Ebitda grew at a CAGR of 51.32% from financial year 2022 to 2024.

Its profit after tax grew significantly at a CAGR of 264.7% during the same period, increasing from Rs 6.23 crore in FY22 to Rs 82.81 crore in FY24. For the first half of FY24, profit after tax stood at Rs 28.01 crore. This sharp growth is partly due to a low base in FY22, which was impacted by the Covid-19 pandemic.

• Increase cross-selling with existing customers and win new customers.

• Pursue more integrated discovery projects to drive customer stickiness, along with larger integrated discovery programs.

• Continue to expand our existing capacity and add new technical capabilities.

• Company's financial performance depends on securing business from biotech and pharma customers, making them vulnerable to their industry risks.

• Company may be adversely affected if their customers fail to develop or manufacture commercially viable drugs, including due to industry specific challenges they may face.

• Company faces the risk of losing revenue from products supplied to innovator pharmaceutical companies after the expiry of their patent protection period.

• Customer pricing pressure may impact company's margins, profitability, and pricing ability, adversely affecting business and finances.

The grey market premium of Sai Life Sciences IPO was Rs 35 as of 12:09 p.m. on Dec. 9. according to InvestorGain. This implies shares of the company will likely list at Rs 584 apiece.

Notably, GMP or grey market price is not an official price quote for the stock and is based on speculation.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.