Sai Life Sciences IPO: Comprehensive Details and Key Insights

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Sai Life Sciences IPO: Comprehensive Details and Key Insights

Sai Life Sciences IPO is a book built issue of Rs 3,042.62 crores. The issue is a combination of fresh issue of 1.73 crore shares aggregating to Rs 950.00 crores and offer for sale of 3.81 crore shares aggregating to Rs 2,092.62 crores.

December 11th, 2024 IPO

The much-anticipated Sai Life Sciences Limited IPO opens for subscription from December 11, 2024, to December 13, 2024. With a total issue size of ₹3,042.62 crores, this IPO is set to be a significant event in the financial market. Here’s a detailed look at all aspects of the Sai Life Sciences IPO.

IPO Details

Sai Life Sciences IPO comprises a fresh issue of 1.73 crore shares, aggregating to ₹950 crores, and an offer for sale (OFS) of 3.81 crore shares, amounting to ₹2,092.62 crores. The price band is set between ₹522 and ₹549 per share, with a lot size of 27 shares.

Key Dates:

Open Date: December 11, 2024
Close Date: December 13, 2024
Basis of Allotment: December 16, 2024
Refund Initiation: December 17, 2024
Credit to Demat Accounts: December 17, 2024
Listing Date: December 18, 2024

Investment Details

Retail Investors: Minimum investment starts at ₹14,823 (1 lot = 27 shares).
S-HNI: Minimum investment is ₹207,522 (14 lots = 378 shares).
B-HNI: Minimum investment is ₹1,007,964 (68 lots = 1,836 shares).

Reservation and Anchor Investors

The IPO reserves 30% of shares for anchor investors, 20% for QIBs, 15% for NIIs, and 35% for retail investors. Anchor investors’ bidding date was December 10, 2024, raising ₹912.79 crores.

Anchor Lock-In Periods:

50% shares: Until January 15, 2025
Remaining shares: Until March 16, 2025

Company Overview

Incorporated in January 1999, Sai Life Sciences Limited specializes in researching, developing, and manufacturing small-molecule new chemical entities. The company provides tailor-made services to biotech firms and pharmaceutical companies worldwide, including the US, UK, Europe, and Japan. As of September 30, 2024, the company employed 3,135 staff, including 302 Ph.D. holders.

Service Offerings:

CRDMO Services: Integrated platform for discovery, development, and manufacturing.
CRO Services: Drug discovery capabilities across biology, chemistry, and drug metabolism.
CDMO Services: Diverse mix of commercial and under-development molecules.

Competitive Strengths

Comprehensive CRDMO platform.
Expertise in drug discovery and development.
Strong client base with 18 of the top 25 global pharmaceutical companies.

Financial Performance

Sai Life Sciences has shown robust growth with a revenue increase of 20% and PAT growth of 729% between FY 2023 and FY 2024. Key financial highlights include:

Period Ended	Revenue (₹ Cr)	PAT (₹ Cr)	Net Worth (₹ Cr)	Assets (₹ Cr)
March 2022	897.74	6.23	877.76	2,164.23
March 2023	1,245.11	9.99	887.29	2,186.65
March 2024	1,494.27	82.81	974.34	2,275.14
Sep 2024	693.35	28.01	1,044.75	2,476.78

Key Metrics

Market Capitalization: ₹11,418.63 crores
ROE: 11.79%
ROCE: 15.96%
PAT Margin: 5.65%
P/BV Ratio: 10.18

IPO Objectives

The proceeds from the IPO will be utilized for:

Repayment/prepayment of certain borrowings.
General corporate purposes.

Conclusion

Sai Life Sciences Limited’s IPO offers an opportunity to invest in a growing company with a strong track record in CRDMO services. With its robust financials, experienced workforce, and comprehensive offerings, the IPO is poised to attract significant interest from retail and institutional investors alike.