Sai Life Sciences is about to revolutionize investment portfolios with a ₹3,042.62 crore initial public offering that promises to be a significant addition to the pharmaceutical sector's service providers. The IPO window is open from December 11 to 13, 2024, allowing investors to stake a claim in this cutting-edge life sciences firm. The IPO breaks down to a fresh issue of 1.73 crore shares valued at ₹950 crores and a strategic offer for sale of 3.81 crore shares totaling ₹2,092.62 crore.
Dive in with just ₹14,823 (retail investors) – the gateway to potentially riding the next big wave in pharmaceutical innovation! With a price band of ₹522 to ₹549 per share and a lot size of 27 shares, this is your ticket to the pharma big leagues. Circle December 16 for share allotment and mark December 18 for the BSE and NSE listing. This isn't just an IPO; it's your chance to be part of a scientific revolution. Are you ready to transform your investment strategy?
Sai Life Sciences IPO is a fundraise worth ₹3,042.62 crores comprising a fresh issue of 1.73 crore shares and an offer for sale of 3.81 crore shares. The IPO will be available for subscription from December 11, 2024, to December 13, 2024, providing an opportunity for investors looking to gain a stake in the pharma segment.
| Sai Life Sciences Limited IPO Date | December 11, 2024 - December 13, 2024 |
| Price Band | ₹522 to ₹549 per share |
| Face Value | ₹1 per share |
| Lot Size | 27 shares |
| Issue Type | Book-built issue |
| Fresh Issue | 17,304,189 shares of ₹1 per share, amounting to ₹950 crores |
| Offer for Sale | 38,116,934 shares of ₹1 per share, amounting to ₹2.092.62 crores |
| Total Issue Size | 55,421,123 shares of ₹1 per share, amounting to ₹3,042.62 crores |
| Listing at | BSE, NSE |
| Share Holding Post Issue | 207,989,529 |
| Share Holding Pre Issue | 190,685,340 |
The Sai Life Sciences Limited IPO opens for subscription on December 11, 2024, and closes on December 13, 2024, with allotment slated for December 16, 2024.
| IPO Open Date | December 11, 2024 (Wednesday) |
| IPO Close Date | December 13, 2024 (Friday) |
| Basis of Allotment | December 16, 2024 (Monday) |
| Initiation of Refunds | December 17, 2024 (Tuesday) |
| Credit of Shares to Demat Account | December 17, 2024 (Tuesday) |
| Listing Date on Exchanges | December 18, 2024 (Wednesday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on December 13, 2024 |
Sai Life Sciences Limited, established in January 1999, has emerged as a powerhouse in the pharmaceutical services landscape, specializing in researching, developing, and manufacturing small-molecule new chemical entities. The company has built an impressive global footprint, providing tailor-made services to over 280 innovator pharmaceutical companies across the United States, United Kingdom, Europe, and Japan. Notably, their client roster includes 18 of the top 25 pharmaceutical companies based on 2023 revenue, highlighting their exceptional reputation and capabilities in the industry. With a strategic business development team spread across key global markets—six professionals in the US, nine in the UK and Europe, and one in Japan—the company has positioned itself as a critical partner in pharmaceutical innovation.
The company's scientific prowess is truly remarkable, boasting a team of 2,353 scientific staff as of September 30, 2024, with an impressive academic background—302 Ph.D. holders and 1,475 staff with master's degrees. Their comprehensive service offerings span chemistry, manufacturing, and control (CMC), contract development and manufacturing organizations (CDMO), and contract research organization (CRO) services, including integrated discovery capabilities across biology, chemistry, drug metabolism, and pharmacokinetics. With a total workforce of 3,135 employees and capabilities across the entire CRDMO value chain, Sai Life Sciences Limited stands as a robust, research-driven organization poised to play a significant role in advancing pharmaceutical research and development on the global stage.
The company plans to utilize the net proceeds to address key financial objectives, including the repayment or prepayment, either fully or partially, of certain outstanding borrowings. Additionally, the funds will be directed toward general corporate purposes to support the company’s broader operational and strategic goals.
The Sai Life Sciences Limited showcases a healthy market capitalization of ₹11,418.63 crores as on March 31, 2024. Key performance indicators reflect the company's financial health, with a Return on Capital Employed (ROCE) of 15.96%, Return on Equity of 11.79% and PAT Margin at 5.65%.
The RoNW stands at 8.13%, while the Price-to-Book Value (P/BV) is seen at 10.18. On an annual basis, the company's Profit After Tax (PAT) surged 729% while the revenue grew 20% in the financial year ending on March 31, 2024. A comparison of earnings per share (EPS) reveals a pre-IPO EPS of ₹4.34, versus ₹2.69 post-IPO.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 693.35 | 1,494.27 | 1,245.11 | 897.74 |
| Assets | 2,476.78 | 2,275.14 | 2,186.65 | 2,164.23 |
| Net Worth | 1,044.75 | 974.34 | 887.29 | 877.76 |
| Profit After Tax | 28.01 | 82.81 | 9.99 | 6.23 |
| Total Borrowing | 764.49 | 710.16 | 699.23 | 751.32 |
| Reserves & Surplus | 1,025.44 | 953.99 | 867.43 | 859.17 |
Amount in ₹ crores
Sai Life Sciences stands out as an integrated Contract Research, Development, and Manufacturing Organization (CRDMO) that provides a comprehensive platform for drug discovery, development, and manufacturing. Its offerings span the entire value chain, from integrated CRO services focused on biology, chemistry, and drug metabolism to a diverse CDMO portfolio that includes both commercial and under-development molecules. The company’s comprehensive approach has earned it a global clientele, including 18 of the top 25 global pharmaceutical firms, highlighting its credibility and extensive reach across the US, UK, Europe, and Japan.
The firm boasts over two decades of experience in the pharmaceutical CRAMS (Contract Research and Manufacturing Services) sector, positioning itself as a trusted partner for top-tier pharma companies. With a strong scientific workforce of over 2,300 professionals, including 302 PhDs, Sai Life Sciences delivers cutting-edge solutions supported by state-of-the-art R&D facilities. The company’s financial growth has been robust, with a revenue increase of 28.5% and a PAT rise of 36.2% between FY23 and FY24. These factors, combined with its experienced leadership and alignment with the rapidly expanding global CRAMS market, underscore its strong growth potential and appeal for investors in share market investment.
Despite its strengths, Sai Life Sciences faces challenges related to regulatory compliance in a highly controlled pharmaceutical sector. Adapting to evolving global regulations and maintaining necessary permits are critical for operations. Moreover, the company has a significant dependency on key clients, with its largest customer contributing over 9% of total revenue in recent periods. This reliance poses a risk to financial stability in the event of client loss or reduced business activity.
Another vulnerability lies in its supplier concentration, where three large suppliers accounted for 15% of raw material costs during the April-September FY25 period. Disruptions in supply could adversely impact operations. Additionally, its subsidiary, Sai Life Sciences Inc., has incurred losses over the last two financial years, potentially affecting overall profitability. The use of animal testing for drug development exposes the company to reputational risks and potential operational disruptions. These factors highlight the need for strategic diversification and risk mitigation to sustain long-term growth.
The Sai Life Sciences IPO represents a rare opportunity to get in on the ground floor of a promising pharmaceutical venture. Imagine being among the early investors who could potentially ride the wave of this emerging life sciences player. But remember, smart investing is about more than just excitement—it's about strategic precision. Before you leap, dive deep into the company's financial vitals, market positioning, and growth potential. Align this opportunity meticulously with your investment goals and risk tolerance. This isn't just another stock offering; it's a strategic financial decision that demands your most calculated attention.
Approach this IPO like a clinical trial: with careful analysis, measured enthusiasm, and a keen eye for potential. Your financial health depends on making informed choices, not just jumping on the latest market trend.
What is the Sai Life Sciences IPO?
The Sai Life Sciences IPO is a main-board offering consisting of 1.73 crore equity shares with a face value of ₹1 a piece, aiming to raise to ₹3042.62 crores. The share price is set between ₹522 and ₹549, with a minimum order quantity of 27 shares. This IPO will be open for subscription from December 11, 2024, to December 13, 2024. Kfin Technologies Limited is the registrar while Kotak Mahindra Capital Company Limited, Jefferies India Private Limited, Morgan Stanley India Company Private Limited, and IIFL Securities Limited are the book-running lead managers.
When will the Sai Life Sciences IPO open?
The Sai Life Sciences IPO will open for subscription on December 11, 2024, and will close on December 13, 2024.
When is the Sai Life Sciences IPO listing date?
The tentative listing date for the Sai Life Sciences IPO is Wednesday, December 18, 2024.
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