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Deven Choksey Research Report
Sai Life Sciences Ltd. will launch its initial public offering on December 11 and the offer closes for subscription on Dec. 13. The globally recognized CRDMO has fixed the price band in the range of Rs 522–549 per share. The minimum order lot is minimun 27 shares.
The Rs 3,042.62 IPO comprises of a fresh issue worth Rs 950 crore and an offer for sale of Rs 2,092.62 crore.
The shares will be listed on the exchanges on Dec. 18.
Object of the offer
Repayment/ prepayment of certain outstanding borrowings.
General Corporate Purpose.
Outlook and Valuation:
Sai Life Sciences is a globally recognized Contract Research, Development, and Manufacturing Organization offering integrated services across drug discovery, development and manufacturing, with a strong presence in regulated markets like the US, UK and Europe.
The company benefits from a robust product pipeline, serving over 280 clients, including 18 of the top 25 global pharmaceutical firms. However, its significant reliance on key clients, limited diversification across treatment areas and high infrastructure costs pose risks to sustained profitability.
With a P/E multiple of 138x, the valuation appears stretched compared to peers in the industry. This premium valuation, coupled with operational risks and margin pressures, limits its investment attractiveness despite growth potential in the global CRDMO market. Therefore, we assign an “Avoid” rating.
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