Sai Life Sciences IPO: Date, Price, Overview, GMP, Allotment

Sai Life Sciences IPO-Complete Overview 

Sai Life Sciences IPO a Mainboard IPO is a book-built issue of Rs.3,042.62 crore (55,421,123 Shares) by Sai Life Sciences Limited which was founded in January 1999. It is a company that researches, develops, and produces new molecules and new chemical entities on a small scale. The company has customized services for biotech companies and global pharmaceutical companies.

In the FY2024 for the month ended September 30, 2024, the company offered services to over 280 innovator pharmaceutical companies, among which more than 230 were provided with such services only in that month. Among this clientele, 18 of the top 25 pharmaceutical companies based on revenues generated in the calendar year 2023, were associated with the company. The companies availed of the services that spread across geographical boundaries that included the US, the UK, Europe, and Japan.

The company has a dedicated business development team comprising 16 help lines, and highly qualified and experienced professionals, of whom six are situated in the USA, 9 in UK and Europe, and one resides in Japan.

Service offerings from the company include:

Capabilities in chemistry, manufacturing, and control ('CMC') or contract development and manufacturing organizations ('CDMO').

CRO services comprise integrated discovery ('Discovery') capabilities concerning biological, chemical, drug metabolism, and pharmacokinetics functions. 

As of September 30, 2024, the company had 2,353 scientific personnel, of whom most of the scientific team have high qualifications, with 302 of them holding Ph.D. and up to 1,475 master's degrees.

Detailed Video

This new IPO is to be launched on 11 December 2024, and the initial public offering of this upcoming IPO will end on 13 December 2024.

Sai Life IPO Details

The Rs.3,042.62 crore Sai Life IPO comprises a combination of a fresh issue of 1.73 Cr Shares (Rs.950 Cr) and an offer for sale (OFS) of 3.81 Cr Shares (Rs.2,092.62 crores). The IPO listing date is on December 18, 2024. Sai Life Sciences IPO Share price is Rs.522 to Rs.549.

If you want to apply for the IPO,  Click Here to open a Demat Account.

Company Financial

The company’s revenue grew by 20% and PAT increased by 729% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in millions)

 

Service-wise Revenue Bifurcation

(Values in lac)

 

The Objective of the Issue

• Full or partial repayment of all or some of the company's outstanding debts.

• General Corporate Purposes.
  
  

Peers of Sai Life Sciences Limited

 

Evaluation

The Sai Life Sciences Share price is between Rs.522 to Rs.549 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.57 from the last year, the resulting P/E ratio is 120.13x. 

Considering the weighted EPS of Rs.2.53 for the last three years, the P/E ratio is 217x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 95.33x.

 

In simple words, the P/E ratio of this IPO (120.13x), compared with the industry’s average P/E of 95.33x, has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.

IPO's Strengths 

• Having been born in an integrated CRDMO environment, the company boasts a comprehensive platform for discovery, development, and manufacturing.

• These include integrated CRO services with discovery capabilities across biology, chemistry, drug metabolism, and pharmacokinetics.

• A CDMO platform with a truly heterogeneous mix of both commercial and under-development molecules.

 

IPO’s Weaknesses 

• Financial performance becomes dependent on its ability to secure business from biotechnology and pharmaceutical customers, and as a result, the company may be subject to risks, uncertainties, and trends that affect its customers in these areas.

• If the customers do not develop or commercialize viable drugs, as may be the case depending on certain industry-related hurdles, business may be negatively impacted.

• The company uses animals for testing, which might lead to negative PR liability and other problems, such as possible facility disruption from anti-animal testing protests.

 

Sai Life Sciences IPO GMP

Sai Life Sciences IPO GMP today has not started yet as of 06 December 2024.

Sai Life Sciences IPO Timetable (Tentative)

The IPO date is from 11 December to 13 December, with IPO allotment on 16 December, and refund initiation on 17 December. The IPO listing date is on 18 December 2024.

 

Sai Life Sciences IPO Other Details 

Sai Life Sciences IPO with a face value of Rs.1 per Share offers a total issue size of 5,54,21,123 Shares (Rs.3,042.62 Cr) and it will be listed at BSE and NSE.

Sai Life Sciences IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (27 Shares) amounting to Rs.14823 and 13 Lots (351 Shares) amounting to Rs.1,92,699 respectively, while for HNI investors, the minimum Lot is 14 (378 Shares) amounting to Rs.2,07,522.

IPO Reservation

 

 

Promoters and Management of Sai Life Sciences Ltd. 

• Kanumuri Ranga Raju

• Krishnam Raju Kanumuri

• Kanumuri Mytrey

• Sai Quest Syn Private Limited

• Sunflower Partners

• Lily Partners

• Marigold Partners

• Tulip Partners.
  
  

IPO Lead Managers

• Kotak Mahindra Capital Company Limited

• Jefferies India Private Limited

• Morgan Stanley India Company Pvt Ltd.

• IIFL Securities Ltd.
  
  

Dividend Policy

Rs.38.33 Million as interim dividend has been paid by the company in FY23. 

Conclusion

The Sai Life Sciences IPO comprises fresh issues and an OFS, demonstrating healthy growth in revenue and profitability, but priced steeply compared to associated peers in the industry. The CRDMO platform is solid, as is the client base; yet the company has a couple of risks applicable to client dependency and a few ethical ones. The company has a couple of risks applicable to client dependency and a few ethical ones. The client has to consider whether it is overvalued and by how much in terms of growth at this point, before investing in it. 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions. 

The company’s data is taken from the Company’s RHP (Red Herring Prospectus) dated 16 November 2024.

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