Sai Life Sciences IPO opens tomorrow: GMP, problem particulars, 10 key issues to know

TPG-backed Sai Life Sciences IPO is scheduled to open for subscription tomorrow (Wednesday, December 11).

The agency is a contract analysis, improvement, and manufacturing organisation (CRDMO) that focuses on innovation. Backed by the personal fairness big TPG Capital, it gives complete providers all through your entire drug discovery, improvement, and manufacturing course of for small-molecule new chemical entities (NCEs) to pharmaceutical and biotechnology corporations worldwide.

Within the monetary 12 months 2024 and for the six-month interval ending September 30, 2024, the corporate served greater than 280 and 230 innovator pharmaceutical corporations, respectively. This contains 18 of the highest 25 pharmaceutical corporations by income for the calendar 12 months 2023, working throughout regulated markets such because the US, the UK, Europe, and Japan.

The corporate operates a big manufacturing facility, known as the “Unit IV Bidar Facility,” positioned in Bidar, India. This facility serves as their major manufacturing web site. Moreover, the corporate have a smaller intermediate facility referred to as the “Unit III Bollaram Facility” in Bollaram, India, the place we manufacture early-phase supplies for a number of merchandise. The agency additionally function a facility referred to as the “Unit II Hyderabad Facility” in Hyderabad, India, which comprises their pilot manufacturing operations.

Based on the purple herring prospectus (RHP), the corporate’s listed friends embrace Divi’s Laboratories Ltd, with a price-to-earnings (P/E) ratio of 103.04; Suven Prescribed drugs Ltd, with a P/E ratio of 109.37; and Syngene Worldwide Ltd, with a P/E ratio of 73.59.

Listed here are the ten key issues to learn about Sai Life Sciences IPO:

Sai Life Sciences IPO date: The difficulty is scheduled to open Wednesday, December 11, and can finish on Friday, December 13.

Sai Life Sciences IPO worth band: The value band has been set within the vary of ₹522 to ₹549 per fairness share of the face worth of Re 1.

Sai Life Sciences IPO lot dimension: 27 fairness shares make up every lot within the IPO. Bids may be positioned for multiples of 27 shares, with a minimal bid of 27.

Sai Life Sciences IPO particulars: The IPO includes a brand new issuance of fairness shares valued at a most of ₹950 crore, together with an Provide For Sale (OFS) of as much as 3.81 crore fairness shares by a promoter, investor shareholders, and varied different shareholders, as said within the RHP.

Below the OFS, one of many entities managed by the promoters — Sai Quest Syn Pvt Ltd — together with investor shareholders — TPG Asia VII SF Pte Ltd and HBM Non-public Fairness India — will divest their particular person stakes.

Sai Life Sciences IPO targets: The corporate proposes to make use of the web proceeds for the next functions: to repay or prepay, in entire or partly, sure excellent borrowings, in addition to for normal company functions.

Sai Life Sciences IPO itemizing date and allotment particulars: The tentative timeline for Sai Life Sciences IPO share allotment date is Monday, December 16. Refunds will start on Tuesday, December 17, and shares might be credited to allottees’ demat accounts the identical day because the refund date. Sai Life Sciences share worth is more likely to be listed on BSE and NSE on Wednesday, December 18.

Lead Supervisor and Registrar of Sai Life Sciences IPO: Kotak Mahindra Capital Firm Restricted, Jefferies India Non-public Restricted, Morgan Stanley India Firm Pvt Ltd, and IIFL Securities Ltd are the book-running lead managers for the Sai Life Sciences IPO. Kfin Applied sciences Restricted serves because the registrar for the problem.

Sai Life Sciences IPO reservation: It has put aside not lower than 15% for non-institutional institutional buyers (NII), a most of fifty% of the shares for certified institutional consumers (QIB), and a not lower than 35% of the shares for retail buyers.

Sai Life Sciences IPO GMP right this moment: Sai Life Sciences IPO GMP right this moment is +28. This means Sai Life Sciences share worth was buying and selling at a premium of ₹28 within the gray market, in response to investorgain.com.

Contemplating the higher finish of the IPO worth band and the present premium within the gray market, the estimated itemizing worth of Sai Life Sciences share worth is indicated at ₹577 apiece, which is 5.1% increased than the IPO worth of ₹549.

Based mostly on the final 5 classes of gray market actions, the present Gray Market Premium (GMP) is ₹28, indicating a downward pattern. The bottom recorded GMP is ₹22, whereas the best is ₹42, in response to specialists at investorgain.com.

‘Gray market premium’ signifies buyers’ readiness to pay greater than the problem worth.

Disclaimer: The views and proposals above are these of particular person analysts, specialists and broking corporations, not of Mint. We advise buyers to examine with licensed specialists earlier than making any funding resolution.