Sai Life Sciences Limited IPO: Key Details
The IPO of Sai Life Sciences Limited opened for subscription on December 11, 2024 and closed on December 13, 2024. The shares were listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on December 18, 2024.
The price band for the IPO was set at ₹522 to ₹549 per share. The minimum bid lot size was 27 shares. The company raised approximately ₹3,042 crore through the IPO.
Key Details:
- Issue Type: Book-built Issue
- Issue Size: ₹3,042.62 crore
- Fresh Issue:₹950.00 Crores
- Price Band: ₹522-₹549 per share
- Lot Size: 190 shares
- Face Value: ₹10 per share
- Offer Type: Book Built Issue
- Lead Managers: Kotak Mahindra Capital Company Limited,Jefferies India Private Limited,Morgan Stanley India Company Pvt Ltd ,IIFL Securities Ltd
- Registrar: KFin Technologies Limited
Timeline
| IPO Open Date: | December 11, 2024 |
| IPO Close Date: | December 13, 2024 |
| Basis of Allotment: | December 16, 2024 |
| Refunds: | December 17, 2024 |
| Credit to Demat Account: | December 17, 2024 |
| IPO Listing Date: | December 18, 2024 |
About Sai Life Sciences Limited
Sai Life Sciences Limited is a leading contract research, development, and manufacturing organization (CRDMO) focused on small molecule drug discovery and development.1 The company offers a range of services, including medicinal chemistry, analytical chemistry, process chemistry, and formulation development.
Core Business:
- Contract Research, Development, and Manufacturing (CRDMO):3 Sai Life Sciences provides end-to-end solutions for drug discovery and development, from early-stage research to commercial manufacturing.4
- Active Pharmaceutical Ingredients (APIs): The company manufactures a range of APIs for various therapeutic areas.5
Market Position:
- Sai Life Sciences has a strong global presence and collaborates with leading pharmaceutical companies.6
- The company has a proven track record of delivering high-quality products and services.7
Future Outlook:
- The global pharmaceutical industry is growing, driven by increasing healthcare spending and the development of innovative drugs.8
- Sai Life Sciences is well-positioned to capitalize on these trends and expand its business.9
- The company may explore new therapeutic areas and technologies to drive future growth.
Objective
The primary objectives of the Sai Life Sciences IPO are:
- Debt Reduction: Utilize the proceeds from the fresh issue to repay or prepay certain outstanding borrowings availed by the company.
- General Corporate Purposes: Strengthen overall financial and operational capabilities, including working capital requirements, funding capital expenditure, and other general corporate purposes.
By achieving these objectives, Sai Life Sciences aims to improve its financial position, reduce its debt burden, and enhance its growth prospects.
Sai Life Sciences Limited IPO: Weighing the Pros and Cons
POSITIVE
- Strong Market Position: Sai Life Sciences is a leading contract research, development, and manufacturing organization (CRDMO) with a strong global presence.
- Diverse Portfolio: The company offers a wide range of services, including medicinal chemistry, analytical chemistry, process chemistry, and formulation development.
- Experienced Management Team: The company has a strong and experienced management team with a proven track record.
- Growth Potential: The global pharmaceutical industry is growing, driven by increasing healthcare spending and the development of innovative drugs.
NEGATIVE
- Intense Competition: The CRDMO industry is highly competitive, with several global players.
- Regulatory Challenges: The pharmaceutical industry is subject to stringent regulations, which can impact the company’s operations.
- Client Concentration Risk: Reliance on a few key clients can expose the company to risks if those clients reduce their spending.
So, How Does Sai Life Sciences Fare in Terms of Financials ?
Financial Review of Sai Life Sciences Limited
| Period Ended | Assets | Revenue | PAT | Net Worth | Reserves and Surplus | Total Borrowing |
|---|---|---|---|---|---|---|
| 30 Sep 2024 | 2,476.78 | 693.35 | 28.01 | 1,044.75 | 1,025.44 | 764.49 |
| 31 Mar 2024 | 2,275.14 | 1,494.27 | 82.81 | 974.34 | 953.99 | 710.16 |
| 31 Mar 2023 | 2,186.65 | 1,245.11 | 9.99 | 887.29 | 867.43 | 699.23 |
| 31 Mar 2022 | 2,164.23 | 897.74 | 6.23 | 877.76 | 859.17 | 751.32 |
(₹ Crore)
Key Observations:
- Revenue Growth: The company has consistently increased its revenue over the past few years, indicating strong growth and market penetration.
- Profitability: Profit after tax (PAT) has also grown steadily, suggesting improved operational efficiency and cost management.
- Asset Growth: The company has invested in assets, as evidenced by the increase in total assets over the past few years.
- Net Worth and Reserves: A healthy increase in net worth and reserves suggests a strong financial position.
- Debt: The company has a relatively low debt level, indicating a strong financial position.
Sai Life Sciences IPO Valuation :
| KPI | Values |
| ROE: | 8.49% |
| ROCE: | 10.26% |
| EBITDA Margin: | 20.48% |
| PAT Margin: | 5.65% |
| Debt to equity ratio: | 0.75 |
| Earning Per Share (EPS): | ₹4.57 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 8.50% |
| Net Asset Value (NAV): | ₹53.83 |
SWOT Analysis: Sai Life Sciences IPO
Strengths
- Strong Global Presence: The company has a strong global presence and collaborates with leading pharmaceutical companies.
- Diverse Portfolio: Sai Life Sciences offers a wide range of services, including medicinal chemistry, analytical chemistry, process chemistry, and formulation development.
- Experienced Management Team: The company has a strong and experienced management team with a proven track record.
- Focus on Quality and Innovation: The company is committed to delivering high-quality products and services.
Weaknesses
- Intense Competition: The CRDMO industry is highly competitive, with several global players.
- Client Concentration Risk: Reliance on a few key clients can expose the company to risks.
- Regulatory Challenges: The pharmaceutical industry is subject to stringent regulations, which can impact operations and profitability.
Opportunities
- Growing Pharmaceutical Market: The global pharmaceutical market is growing, driven by increasing healthcare spending and the development of innovative drugs.
- Expansion into New Therapeutic Areas: The company can explore new therapeutic areas to diversify its revenue streams.
- Strategic Partnerships: Collaborating with other companies to access new technologies and markets.
Threats
- Economic Downturns: Economic downturns can impact pharmaceutical spending and affect the company’s business.
- Currency Fluctuations: Fluctuations in foreign exchange rates can impact the company’s profitability.
- Intellectual Property Risks: Protecting intellectual property rights is crucial in the pharmaceutical industry.
Competitive Analysis: Sai Life Sciences Limited
Sai Life Sciences Limited operates in a highly competitive Contract Research, Development, and Manufacturing Organization (CRDM) landscape. Key competitors include:
- Piramal Pharma Solutions: A global contract development and manufacturing organization (CDMO) with a strong focus on complex molecules.
- Jubilant Biosys: A CDMO specializing in small molecule drug discovery and development.
- Dr. Reddy’s Laboratories: A leading pharmaceutical company with a significant presence in the CRDMO space.
- Aurobindo Pharma: A global pharmaceutical company with a strong focus on generic drugs and active pharmaceutical ingredients (APIs).
Key areas of competition:
- Service Offerings: Companies compete in terms of the range of services offered, including drug discovery, development, and manufacturing.
- Technological Capabilities: Advanced technologies and innovative approaches are crucial for staying competitive.
- Client Base: Attracting and retaining a diverse client base, including global pharmaceutical companies, is essential.
- Regulatory Compliance: Adherence to stringent regulatory standards is crucial for operating in the pharmaceutical industry.
- Pricing and Cost Efficiency: Competitive pricing and efficient operations are key to profitability.
By understanding the competitive landscape, Sai Life Sciences can identify opportunities for growth, differentiate itself from competitors, and strengthen its market position.
Sai Life Sciences IPO GMP
- Grey market premium as on 13-12-2024 = ₹91/ Share
Disclaimer:
- IPO Grey Market Premium (Sai Life Sciences IPO GMP) mention is valid for the specific date as mentioned in the header.
- We are not buying and selling IPO forms on IPO Grey Market.
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.
Sai Life Sciences IPO
🔴 Live Subscription Status 🔴
13/12/2024 5:00 PM
| | NO OF SHARES OFFERED | Day 1 | Day 2 | Day 3 |
| Qualified Institutional Buyers(QIBs) | 1,06,71,763 | 2.62 | 3.32 | 30.93 |
| Non Institutional Investors(NIIs) | 84,47,426 | 0.15 | 0.59 | 4.92 |
| Retail Individual Investors(RIIs) | 1,97,10,659 | 0.18 | 0.42 | 1.37 |
| Employees | – | – | – | – |
| Total | 3,88,29,848 | 0.84 | 1.25 | 10.26 |
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