Everything you need to know about Sai Life Sciences Limited IPO

Sai Life Sciences Limited, established in 1999, is a contract research, development, and manufacturing organization (CRDMO) providing services in drug discovery, development, and manufacturing. The company offers capabilities in chemistry, manufacturing, and control (CMC) and contract research (CRO) for small-molecule new chemical entities. It serves over 280 pharmaceutical companies and operates globally, with facilities in the US, UK, and India. The company employs over 2,300 scientific staff and has received multiple regulatory approvals from authorities including the USFDA and CDSCO.

Issue size

Funds to be Raised in the IPO Amount
Overall ₹3,042.62 crores
Fresh Issue ₹950.00 crores
Offer for sale ₹2,092.62 crores

The utilisation of proceeds:

Purpose INR crores (%)
Repayment/Pre-payment of borrowings 720.00 (75.79%)
General corporate purposes 230.00 (24.21%)

Financial Snapshot

Financial Year Ended March 2022 March 2023 March 2024 September 2024
Total Assets 2164.23 2,186.65 2,275.14 2,476.78
Revenue 897.74 1245.11 1,494.27 693.35
Profit After Tax 6.23 9.99 82.81 28.01

*All figures are in ₹ Crores.

Strengths

  • Integrated Indian CRDMO offering discovery, development, and manufacturing services.
  • Portfolio includes 50 late-phase and commercial products as of September 30, 2024.
  • Diverse mix of commercial drugs and under-development molecules with blockbuster potential.
  • CRDMO model enables proximity-based development and manufacturing in India.
  • Broad customer base, including top global pharmaceutical companies.

Risk factors

  • Dependence on biotechnology and pharmaceutical customers subject to market and funding risks.
  • R&D outcomes may fail to meet customer expectations, leading to project discontinuation.
  • Low success rate in drug development impacts overall financial performance.
  • Risks from international operations, including delays and regulatory challenges.
  • Loss-making subsidiaries may adversely impact overall financials.
  • Pricing pressure from customers may affect margins and profitability.
  • High working capital requirements could strain financial resources.
  • No proceeds from the Offer for Sale portion will benefit the company.

Media coverage

Schedule of Sai Life Sciences Limited

Issue Period 11th December to 13th December 2024
Price band ₹ 522 - 549
Minimum Bid quantity 27 shares
UPI Mandate Deadline 5 PM, 13 December 2024
Allotment Finalization 16 December 2024
Refund Initiation 17 December 2024
Share Credit 17 December 2024
Listing Date 18 December 2024
Mandate end date 28 December 2024
Lock-In End Date for Anchor Investors (50%) 15 January 2025
Lock-In End Date for Anchor Investors (Remaining) 16 March 2025

CRDMO companies are in news these days

GMP is around Rs 31, indicating a 6% premium over the issue price.