Sai Life Sciences IPO: Date, Price, GMP, Allotment, Key Things To Know; Is The IPO Attractive Bet?

Sai Life Sciences IPO: Bidding for Rs 3,042.62 crore IPO is all set to open on December 11, and its latest grey market premium (GMP) is already hinting at premium listing on BSE and NSE. Subscription window will close on December 13. Notably, the window to apply for the IPO is open on Tuesday, December 10, for anchor investors. The IPO is a mixture of fresh issues and offers for sale.

Sai Life Sciences IPO Details:

The IPO is a combination of a fresh issue worth Rs 950 crore and an offer for sale (OFS) of up to 3,81,16,934 equity shares. The 100% book building has a price band of Rs 522 to Rs 549 per share. The bid lot size is 27 Equity Shares and in multiples thereof equity shares.

Of the total issue size, 50% of the portion will be reserved for qualified institutional buyers (QIBs), while 35% of the portion will be allocated to retail individual investors, and the rest of 15% will be kept for non-institutional investors (NII) for bidding.

The minimum investment allowed for bidding to retail investors is Rs 2 lakh.

Kotak Mahindra Capital Company Limited, IIFL Capital Services Limited, Jefferies India Private Limited, and Morgan Stanley India Company Private Limited are book-running lead managers. While KFin Technologies is the registrar of the IPO.

Sai Life Sciences IPO GMP Today:

As per Investor Grain, Sai Life Sciences IPO's last GMP is ₹32, last updated Dec 10th 2024 12:24 PM. With a price band of 549.00, Sai Life Sciences IPO's estimated listing price is ₹581 (cap price + today's GMP). The expected percentage gain/loss per share is 5.83%.

Sai Life Sciences IPO Allotment:

After the IPO, the basis of allotment is expected to take place on December 16, 2024. Further, the initiation of refunds or credit to eligible shareholders' demat accounts is likely to take place on December 17. The allotment status can be checked on BSE, NSE and KFIN Technologies.

Sai Life Sciences IPO Listing:

The IPO is expected to list on December 18 tentatively. The listing will take place on BSE and NSE.

Is Sai Life Sciences IPO Attractive?

As per Bajaj Finserv's report, Sai Life Sciences IPO represents a structured approach for investors interested in the CRDMO and pharmaceutical research industries. With its growing financials and global client base, the company showcases its market potential.

Brokerage ICICI Direct has highlighted competitive strengths and risks for the IPO:

Competitive Strengths:

- They are one of the largest integrated Indian CRDMOs in terms of revenue from operations for FY24, acting as a one-stop platform for discovery, development, and manufacturing.

- The company provides end-to-end development and manufacturing services covering the full value chain for intermediates and APIs.

- Sai Life is a fast-growing, integrated Discovery capability with a focus on biology, chemistry, and DMPK services.

- They have established a fully integrated CRDMO platform with access to talent from across the world.

Risks:

- Their financial performance depends on their ability to secure business from biotechnology and pharmaceutical customers and consequently, they may be subject to risks, uncertainties, and trends that affect the customers in these industries.

- They may not be able to continue to serve their customers if we fail to meet their standards in audits and inspections and this could significantly harm their reputation and result in the termination of ongoing projects by customers.

- The company's business may be adversely affected if its customers fail to develop or manufacture commercially viable drugs, including due to industry-specific challenges they may face.

- They are subject to extensive government regulation, and if they fail to obtain, maintain, or renew their statutory and regulatory licenses, permits, and approvals required to operate their business, the results of operations and cash flows may be adversely affected.

About Sai Life Sciences:

Sai Life Sciences is the fastest-growing contract research, development, and manufacturing organisation (CRDMO) among listed Indian peers (in terms of revenue CAGR as well as EBITDA CAGR from FY22 to FY24). As a pure-play, full-service CRDMO, we work with over 280 global innovator pharma and biotech companies to accelerate the discovery, development, and commercialisation of their NCE small molecule programmes.

Over the past 25 years, Sai Life Sciences has served a diverse set of programmes, consistently delivering value based on its quality and responsiveness. As of March 2024, we had 2845 employees across our facilities in India, UK, USA and Japan.