Sai Life Sciences IPO Scheduled to Open for Subscription Tomorrow

New Delhi: The initial public offering (IPO) of Sai Life Sciences, a TPG-backed contract research, development, and manufacturing organization (CRDMO), is set to open its subscription process tomorrow, Wednesday, December 11.

The firm, which provides comprehensive services throughout the entire drug discovery, development, and manufacturing process for small-molecule new chemical entities (NCEs) to pharmaceutical and biotechnology companies worldwide, has already garnered significant attention from investors.

In the financial year 2024 and for the six-month period ending September 30, 2024, the company served more than 280 and 230 innovator pharmaceutical companies, respectively. This includes 18 of the top 25 pharmaceutical companies by revenue for the calendar year 2023, operating across regulated markets such as the US, the UK, Europe, and Japan.

Sai Life Sciences operates a large manufacturing facility in Bidar, India, serving as their primary production site, and has smaller intermediate facilities in Bollaram and Hyderabad, India. The firm also conducts pilot manufacturing operations from its Unit II facility in Hyderabad.

The IPO comprises a new issuance of equity shares valued at a maximum of ₹950 crore, along with an Offer For Sale (OFS) of up to 3.81 crore equity shares by various shareholders. The company proposes to use the net proceeds for repaying or.preprocessing certain outstanding borrowings and general corporate purposes.

Key highlights of the Sai Life Sciences IPO include:

• The price band has been set in the range of ₹522 to ₹549 per equity share.
• A minimum bid of 27 shares is permissible, with each lot comprising 27 shares, with multiple bids allowed for multiples of 27 shares.
• The firm's listed peers include Divi's Laboratories Ltd, Suven Pharmaceuticals Ltd, and Syngene International Ltd.
• The tentative listing date for Sai Life Sciences IPO share allotment is Monday, December 16.

As the IPO approaches, investors are taking note of the company's strong performance, industry presence, and strategic partnerships. While the grey market premium has shown a downward trend in recent sessions, experts predict that the estimated listing price will be in the range of ₹577 apiece.