₹ 14823 / 27 shares
IPO Details
RHP/DRHPIssue Date
11 Dec - 13 Dec'24
Investment/lot
₹ 14823
Price Range
522 - 549
Lot Size
27
IPO Size
₹ 2939.7 - ₹ 3042.62 Cr
IPO Timeline
About Sai Life Sciences IPO
Sai Life Sciences IP is an IPO of ₹3042 crores. It consists of a fresh issue portion of ₹950 crores and an offer for sale of ₹2092.62 crores. The date for anchor bidding is Dec 10, 2024. The shares will be allotted on Dec 16, 2024. The initiation of refunds will take place on Dec 16, 2024 and the shares will be credited to the demat account on Dec 17, 2024.
Objectives of the IPO:
- Repayment or prepayment of certain borrowings: ₹720 crores.
- General corporate purposes
Sai Life Sciences IPO Valuation
| Particulars | Value |
|---|---|
Upper Price Band | ₹549 |
Existing Shares To be sold | 38,116,934 shares |
Fresh Issue | 17,204,189 shares |
Market Cap | ₹11419 crores |
EPS | 45.28 |
Sai Life Sciences IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
Retail (Min) | 1 | 27 | ₹14,823 |
Retail (Max) | 13 | 351 | ₹192,699 |
S-HNI (Min) | 14 | 378 | ₹207,522 |
S-HNI (Max) | 67 | 1809 | ₹993,141 |
Subscription Details
| Subscription Details | Percentage |
|---|---|
QIB | 50% |
NII | 15% |
Retail | 35% |
Comparison with peers
| Name of the company | Revenue from Operations | Face Value per equity share | P/E Ratio | EPS Basic | RoNW | NAV per equity share |
|---|---|---|---|---|---|---|
Sai Life Sciences Limited | 14651.78 | 1 | * | 4.57 | 8.50% | 53.83 |
Divi’s Laboratories Limited | 78,450.00 | 2 | 103.04 | 60.27 | 11.79% | 511.21 |
Suven Pharmaceuticals Limited | 2391.73 | 1 | 109.37 | 11.80 | 14.64% | 94.04 |
Syngene International Limited | 10,513.54 | 10 | 73.59 | 12.69 | 11.98% | 105.91 |
Anchor investors
The anchor investors’ bid opens on Dec 10, 2024. The company may allocate up to 60% of the QIB portion to anchor investors, out of which one third will be allocated to Mutual Funds.
Book running lead managers:
- Kotak Mahindra Capital Company Limited
- Jefferies India Private Limited
- Morgan Stanley India Company Ltd
- IIFL Securities Ltd
Registrar for the IPO: Kfin Technologies Limited
Business Model
The company earns money from the following sources:
-
Contract Research: Research services for small molecule development.
-
Contract Manufacturing: Large-scale production of APIs and intermediates.
-
Fee-for-Service (FFS) Model: Revenue based on customer-specific projects and long-term contracts.
Growth Trajectory
Revenue from operations increased from ₹8,691.24 million in FY22 to ₹14,687.23 million in FY24. Profit after tax surged from ₹62.26 million in FY22 to ₹828.09 million in FY24.
Market Position
Sai Life Sciences is a leader in the global CRDMO market, which is forecasted to reach USD 159 billion by 2028. The Indian CRDMO sector, growing at 14% CAGR, positions the company as a significant player with a strong focus on small molecule research and cost-efficient services.
Industry Overview
The global small molecule Contract Research, Development, and Manufacturing Organisation (CRDMO) market is projected to reach USD 159 billion by 2028, driven by rising pharmaceutical and biotech R&D outsourcing and demand for cost-efficient drugs. India’s CRDMO market is among the fastest-growing in the Asia-Pacific region, with an anticipated 14% CAGR between 2023 and 2028, reaching USD 14.1 billion by 2028. The industry's growth is fuelled by advancements in drug discovery, manufacturing technologies, and a strong focus on small molecule therapeutics.
About Sai Life Sciences company
Sai Life Sciences is a fully integrated, innovator-focused contract research, development, and manufacturing organisation (CRDMO). The company provides end-to-end services for small molecule new chemical entities to pharmaceutical innovators and biotech firms globally.
All Financial Information about Sai Life Sciences
Comprehensive financial data, including revenue, profit/loss statements, EBITDA, and other critical metrics.
Particulars (in Rs. million)
Particulars (in Rs. million)
Key Financial Information about Sai Life Sciences
Presentation of key financial metrics and indicators to assess Sai Life Sciences's financial health.
| Metric | FY22 | FY23 | FY24 |
|---|---|---|---|
Revenue from Operations | 8,691.24 | 11,969.49 | 14,687.23 |
Total Equity and Liabilities | 22,751.36 | 21,866.48 | 21,642.30 |
RoNW (%) | 0.71 | 1.13 | 8.5 |
Sai Life Sciences IPO Risk Factors
Regulatory Dependencies: Highly dependent on obtaining and maintaining licenses and approvals.
Market Competition: Faces intense competition in the global CRDMO space.
Financial Risks: Exposure to foreign exchange fluctuations and raw material price volatility.
Sai Life Sciences IPO Key Points
Potential Benefits for Investors:
- Access to the fast-growing Indian CRDMO market, projected to grow at 14% CAGR.
- Leveraging Sai Life’s established global presence in drug discovery and manufacturing.
Market Position
Sai Life Sciences is a leader in the global CRDMO market, which is forecasted to reach USD 159 billion by 2028. The Indian CRDMO sector, growing at 14% CAGR, positions the company as a significant player with a strong focus on small molecule research and cost-efficient services.
Sai Life Sciences IPO Strengths:
One of the largest integrated Indian CRDMOs in terms of revenue from operations for the Financial Year 2024acting as a one-stop platform for discovery, development and manufacturing
The company is one of the largest integrated CRDMOs among listed Indian peers in terms of revenue from operations for the FY2024, serving as a one-stop platform for discovery, development and manufacturing. (Source: F&S Report).
CDMO platform with a diverse mix of commercial and under-development molecules:
We provide end-to-end development and manufacturing services covering the full value chain for intermediates and APIs.
As of September 30, 2024, the company’s development and manufacturing portfolio constituted 38 products used in the production of 28 commercial drugs, including seven blockbusters (drug products with annual sales of over US$1 billion in the Financial
Year 2023) and 12 products used in the production of 11APIs that were either undergoing or had completed Phase III clinical trials (Source: F&S Report).
Consistent Growth: Demonstrated revenue and profitability growth over the past three years.
The company is the fastest-growing Indian CRDMO among listed Indian peers in terms of revenue CAGR as well as EBITDA CAGR from Financial Year 2022 to Financial Year 2024. (Source: F&S Report) This growth is complemented by a trend of improving margins. Their strategic initiatives which are focused on operational efficiencies, cost management, and value creation allow them to not only grow but also improve their profitability and return on capital.
Cash Flow Statements
| (in millions) | FY24 | FY23 | FY22 |
|---|---|---|---|
Profit/loss before tax | 1092.34 | 164.08 | 96.95 |
Net cash generated from/using operating activities | 2,630.87 | 2 ,194.03 | 1048.66 |
Net Cash generated from investing activities | (1,923.81) | (1,017.81) | (1,037.14) |
Net cash generated from financing activities | (952.99) | (2,006.48) | 719.23 |
Cash and cash equivalent at the end of the year | 119.69 | 3 55.29 | (736.54) |
How to check allotment status?
You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar — Link InTime India Pvt Ltd. To check the status on the BSE website:
- Visit the BSE website
- Click on “Investor Services” and choose “Application Status Check”
- Choose the issue type — Equity or Debt (Equity in this case)
- Select the Issue Name from the drop-down. The issue name is the company’s name, which is Sai Life Sciences Ltd
- Enter your application number or PAN number
- Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
Follow these steps to know the allotment status on the registrar’s website:
- Visit the Link Intime website
- Choose “Public Issues” from the “Investor Services” drop-down
- Select Sai Life Sciences from the drop-down
- Enter your PAN number or Application number
- Click on “Submit” to know the allotment status
Sai Life Sciences IPO Review | IPO Issue details | IPO Objectives and other key highlights
Kotak Securities
•03m 44s
Sai Life Sciences IPO FAQs
What is the minimum lot size required for Sai Life Sciences IPO?
The minimum lot size is 27 shares and the investment required is ₹14823.
What is the price band of the Sai Life Sciences IPO?
The price band of Sai Life Sciences IPO is ₹522 to ₹549.
Where can I read more about Sai Life Sciences business?
You can read more about Sai Life Sciences and its IPO from the company’s red herring prospectus (RHP) here.
What is the Sai Life Sciences Limited IPO?
The Sai Life Sciences Diagnostics Limited IPO has an issue size of ₹3042 crores. The IPO opens for subscription on 11/12/2024 and closes on 13/12/2024.
Who is the Registrar for Sai Life Sciences Limited IPO?
Link Intime India Limited is the registrar for this IPO.
