Sai Life Sciences IPO opens on December 11; here are key details about the initial share sale

The initial public offering (IPO) of Sai Life Sciences shall open for bidding on Wednesday, December 11. The company has fixed its price band in the range of Rs 522-549 apiece. Investors can apply for a minimum of 27 equity shares and its multiples thereafter. The issue will close for subscription on Friday, December 13.

Incorporated in January 1999, Sai Life Sciences researches, develops, and manufactures small-molecule new chemical entities. The company offers tailor-made services to biotech firms and global pharma companies. Its services were offered across countries such as the US, the UK, Europe, and Japan.

The IPO of Sai Life Sciences include a fresh share sale of Rs 950 crore and its existing shareholders and promoters will cumulatively offload 3,81,16,934 equity shares from their stake amounting to Rs 2,092.62 crore. At the upper end of the price band, the company is looking to raise a total of Rs 3,042.62 crore. The anchor book for the issue opens on Tuesday, October 10.

The net proceeds from the fresh issue shall be utilized towards repayment/prepayment of certain outstanding borrowings and general corporate purposes. Promoter Sai Quest Syn and other investors including TPG Aisa VII SF, HBM Private Equity India, Bharathi Srivari, Raju Penmasta, Anita Rudraraju Nandyala and others will participate in the OFS.

In the Financial Year 2024 and for the month ending September 30, 2024, Sai Life Sciences provided services to over 280 innovator pharmaceutical companies, including more than 230 in that month alone. Among these clients, the company worked with 18 of the top 25 pharmaceutical companies based on their revenue in the calendar year 2023.

The company's business development team consists of 16 experienced and qualified professionals, with six located in the US, nine in the UK and Europe, and one in Japan. As of September 30, 2024, the company had 2,353 scientific staff, with the majority of the scientific team holding advanced degrees.

For the six months ended on September 30, 2024, Sai Life Sciences reported a net profit of Rs 28.01 crore with a revenue of Rs 693.35 crore. The company reported a net profit of Rs 82.81 crore with a revenue of Rs 1,494.27 crore for the financial year 2023-24.

Sai Life Sciences has reserved 50 per cent of the net offer for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the allocation. Retail investors will have 35 per cent of reservation in the IPO. The total market capitalization of Vishal Mega Mart shall stand slightly above Rs 11,400 crore.

Kotak Mahindra Capital Company, Jefferies India, Morgan Stanley India Company and IIFL Securities are the book running lead managers of the Sai Life Sciences IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on December 18, Wednesday.