Alayaran.com Exclusive: Sai Life Sciences IPO Sail Through On Second Day of Bidding Process, Subscribed 1.25 Times

Mumbai, [Current Date] - The initial public offering (IPO) of digital payments platform Sai Life Sciences saw a strong response from investors on the second day of bidding process, with the Rs 3,042 crore issue subscribed 1.25 times. The issue, which is a fresh issue of 1.73 crore shares and an offer for sale (OFS) of 3.81 crore shares, will close tomorrow.

The company had set a price band of Rs 522-549 per share for its IPO, where investors can bid for 27 shares in one lot. The GMP for Sai Life Sciences shares is around Rs 19, indicating a 3% premium over the issue price.

Analysts have stated that the offer structure is more tilted towards an OFS with limited direct benefits to the company. "The financial performance has been positive with a sharp rise in profitability; however, the IPO is significantly overvalued," said Swastika Investmart, an investment expert. "Given the high valuation and limited direct benefits to the company from the IPO, a cautious approach is recommended."

Sai Life Sciences provides end-to-end services across the drug discovery, development, and manufacturing value chain for small molecule New Chemical Entities (NCE) to global pharmaceutical innovator companies and biotechnology firms. The global small molecule contract research, development, and manufacturing organization industry is forecasted to reach $159 billion by 2028.

The lead managers of the IPO include Kotak Mahindra Capital Company Ltd, IIFL Capital Services Ltd, Jefferies India, and Morgan Stanley India Company, while KFin Technologies is the registrar for the issue.

Sai Life Sciences' IPO opened for public subscription on December 11 and will close on December 13. The experts have recommended a cautious approach to investors considering the high valuation of the company's shares.