Sai Life Sciences IPO 2024: Key Dates, Price, and Investment Guide
Sai Life Sciences Limited, a leading contract research, development, and manufacturing organization (CRDMO), is set to launch its ₹3,042.62 crore Initial Public Offering (IPO) from December 11 to 13th December 13, 2024. This IPO offers investors a chance to participate in the growth of a company that plays a crucial role in the global pharmaceutical industry, supporting innovation and drug commercialization.
Here are 10 key things you should know before investing in Sai Life Sciences Limited IPO:
What makes Sai Life Sciences a good opportunity?
Sai Life Sciences Limited is one of India’s largest integrated CRDMOs, offering end-to-end services across the drug discovery, development, and manufacturing spectrum. The company collaborates with 280+ global pharmaceutical and biotech firms, including 18 of the top 25 pharmaceutical companies, and is recognized for its regulatory compliance and ESG initiatives.
With a revenue CAGR of 29.80% (FY22-FY24) and EBITDA CAGR of 51.32%, the company is well-positioned to leverage growth in the global pharmaceutical market, which is expected to grow at a 6.2% CAGR (2023–2028).
What are the IPO dates, price band, and issue size?
Here are the critical details for the Sai Life Sciences IPO:
- IPO dates: December 11th –13th, 2024
- Listing date: December 18th, 2024
- Price band: ₹522–₹549 per share
- Total issue size: ₹3,042.62
- Face value: ₹1 per share
- Lot size: 27 shares
- Listing Exchange: BSE, NSE
- Promoters: Kanumuri Ranga Raju, Krishnam Raju Kanumuri, Kanumuri Mytreyi, Sai Quest Syn Private Limited, Marigold Partners, Sunflower Partners, Tulip Partners, and Lily Partners
What Is the minimum investment for Sai Life Sciences Limited IPO?
The minimum investment required to apply for Sai Life Sciences Limited IPO is ₹14,094, and the lot size for this IPO is 27 shares. However, we recommend applying for the IPO at the upper price band to increase your chances of getting the IPO – which is ₹14,823 (27 shares at the lower price band of ₹549).
What does the company do?
Established in 1999, Sai Life Sciences Limited specialises in contract research, development, and manufacturing for pharmaceutical companies.
- Services: Spanning early drug discovery to commercial manufacturing of small-molecule new chemical entities (NCEs).
- Portfolio: 170+ innovator products, including 38 APIs for 28 commercial drugs.
- Operations: Facilities in the US, UK, and cost-efficient centres in India.
- Team: Employs 2,353 scientists, including 302 PhDs.
The company’s integrated approach reduces time-to-market and ensures quality for clients across the US, UK, Europe, and Japan.
What Are the Objectives of the IPO?
The IPO proceeds will primarily be used to:
- Reducing outstanding debts to strengthen financials.
- General Corporate Purposes
How much Is reserved for retail and other investors?
The Sai Life Sciences IPO has reserved shares as follows:
- Qualified institutional buyers (QIBs): Up to 50%
- Non-Institutional investors (NIIs): At least 15%
- Retail investors: At least 35%
What are the key strengths and risks?
Strengths
- Integrated CRDMO: Offers end-to-end solutions, ensuring cost efficiency and faster drug development.
- Robust portfolio: Includes 7 high-revenue drugs with annual sales over ₹100 crore.
- Global presence: R&D hubs in Boston and Manchester complement cost-efficient Indian operations.
- Financial growth: Strong CAGR in revenue and profitability from FY22 to FY24.
- Regulatory compliance: Approved by USFDA, PMDA Japan, and others.
Risks
- Dependence on international markets: Nearly 98% of revenue is from foreign customers, exposing the company to geopolitical and regulatory risks.
- Attrition: High workforce attrition of 24.7% in FY24 may impact operations.
- Legal risks: Pending litigations and compliance issues could lead to operational disruptions.
- Working capital: Substantial working capital requirements may strain liquidity.
Can you share the financial performance of Sai Life Sciences?
Sai Life Sciences has demonstrated strong financial growth:
| Period Ended | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | ₹2,476.78 Cr | ₹2,275.14 Cr | ₹2,186.65 Cr | ₹2,164.23 Cr |
| Revenue | ₹675.28 Cr | ₹1,465.18 Cr | ₹1,217.14 Cr | ₹869.59 Cr |
| Profit After Tax | ₹28.01 Cr | ₹82.81 Cr | ₹9.99 Cr | ₹6.23 Cr |
What is the allotment and listing date?
- Allotment Date: December 16, 2024
- Shares credited to demat accounts: December 17, 2024
- Listing date: December 18, 2024
Should you invest in Sai Life Sciences Limited IPO?
Sai Life Sciences presents a compelling investment case with its integrated CRDMO model, robust portfolio, and strong financial growth. However, before subscribing, potential investors should weigh the risks, such as dependence on international markets and regulatory challenges.
With its focus on innovation and cost-efficient drug manufacturing, Sai Life Sciences is poised for growth in the global pharmaceutical market. Evaluate your risk appetite and investment goals before participating in this IPO.
