TPG-backed Sai Life Science files DRHP with Sebi to launch IPO

TPG-backed entity Sai Life Science has filed its draft red herring prospectus (DRHP) with capital market regulator Sebi to raise funds by launching its initial public offering (IPO). The IPO of Sai Life Sciences included a fresh share sale of up to 800 crore, said the DRHP, which was filed on Friday, July 12, 2024.
 

Sai Life Sciences is a contract research, development, and manufacturing organization (CRDMO) offering comprehensive drug discovery, development, and manufacturing services for small molecule NCEs to global pharmaceutical and biotech companies. It provides both discovery/contract research and CMC/contract development and manufacturing capabilities.
 

The issue also includes an offer-for-sale (OFS) of up to 6,15,73,120 equity shares by its promoters and existing shareholders of the company. Sai Quest Syn, TPG Asia VII SF, HBM, Bharathi Srivari, Anita Rudraraju Nandyala, Raju Penmasta, Dr. Dirk Walter Sartor, Jagdish Viswanath Dore, Rajagopal Srirama Tatta and K Pandu Ranga Raju will participate in the OFS.
 

Sai Life Sciences proposes to utilize net proceeds from fresh issue towards repayment and/or prepayment, in full or part, of all or certain outstanding borrowings availed by company to Rs 600 crores and general corporate purposes. The aggregate borrowings of company on a consolidated basis were Rs 710.16 crore as of March 2024.
 

The firm offers services through globally accredited manufacturing and R&D facilities, supported by a qualified team of 2,125 scientific staff, including 276 PhDs and 1,343 master's degree holders. Its manufacturing facilities have received approvals from the USFDA, PMDA, and CDSCO.
 

The company may reserve some shares in the IPO for its eligible employees. 50 per cent of the net offer shall be reserved for the qualified institutional bidders (QIBs), while 15 per cent of the net offer shall be reserved for the non-institutional bidders. Retail investors will get the remaining 35 per cent of the net issue allocated towards them.
 

Kotak Mahindra Capital, IIFL Securities, Jefferies India and Morgan Stanley India Company are the lead managers to the issue, while KFin Technologies is the registrar for the issue. Shares of the company are proposed to be listed on both BSE and NSE.