Sai Life Sciences Shares Debut At 19% Premium Over Issue Price

The share price of Sai Life Sciences Ltd. listed on the BSE on Monday at Rs 660 apiece, a premium of 20.2% over the issue price of Rs 549 apiece. The stock listed at Rs 650 per share on the National Stock Exchange, marking a premium of 18.4%.

The Rs 3,042-crore IPO was subscribed 10.26 times on its final day. The bids were led by qualified institutional buyers (30.93 times), followed by non-institutional investors (4.92 times) and retail investors (1.37 times).

The IPO included a fresh issue of 1.73 crore shares worth Rs 950 crore and an offer for sale of 3.81 crore shares. Of the IPO proceeds, funds will be used for debt payment, and a portion will be used for corporate general purposes.

The company set a price band of Rs 522–549 per share for the IPO, with retail investors required to bid for a minimum lot of 27 shares. Sai Life Sciences raised Rs 912.7 crore from anchor investors by allotting 1.66 crore shares at Rs 549 each to 225 investors.

Kotak Mahindra Capital Co., IIFL Securities Ltd., Jefferies India Pvt. and Morgan Stanley India Co. were the book-running lead managers for the issue.

Sai Life Sciences is an innovator-focused contract research, development, and manufacturing organisation based in Malkajgiri, Hyderabad, Telangana.

The company offers comprehensive end-to-end services across the entire drug discovery, development, and manufacturing value chain. Specialising in small molecule new chemical entities, Sai Life Sciences caters to global pharmaceutical and biotechnology companies.

With expertise in both contract research and chemistry, manufacturing, and control, the company excels in providing integrated solutions for drug discovery, development, and manufacturing, supporting innovators in the pharmaceutical industry.

As of March 31, 2024, their company's CDMO product portfolio included more than 150 innovator pharmaceutical products, including 38 products that were supplied for the manufacturing of 28 commercial drugs.