22-Jul-2024
2 mins read
- Sai Life Sciences is the fastest-growing CRDMO firm
- The company is looking for Rs 800 Crore of Equity Shares as a fresh issue
- Sai Life Science Limited’s profit massively increased by 729% for FY24
- Promoters of the company are offering up to 61,573,120 equity shares for sale
Sai Life Sciences submits DRHP with SEBI and will be coming up with its public issue in the upcoming time; the public issue will be offering a 100% book-built offer. This upcoming IPO is offering a fresh issue worth up to Rs 800 Crore of equity shares and an offer for sale worth up to 61,573,120 equity shares. The face value is reported as Re 1 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer reserved for Qualified Institutional Investors, not less than 15% reserved for NII and the remaining 35% or more reserved for Retail Individuals. The opening and closing dates of this IPO have not yet been disclosed, and the price band will be announced soon by the company.
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About Sai Life Sciences Private Limited
Sai Life Sciences Limited, founded in 2016, is an innovator-focused contract research, development, and manufacturing organisation (CRDMO). They offer end-to-end services across the drug discovery, development, and manufacturing value chain for small molecule new chemical entities (NCEs) to global pharmaceutical and biotechnology firms. Sai Life Sciences operates research laboratories near innovation hubs in the US and UK, complemented by large-scale facilities in India. In FY 2024, they served over 280 pharmaceutical companies, including 18 of the top 25 by revenue. Their portfolio includes over 150 pharmaceutical products, with 38 supplied for the manufacturing of 28 commercial drugs. They employ a highly qualified team of 2,125 scientific staff and have facilities accredited by USFDA, PMDA, and CDSCO.
Sai Life Sciences Private Limited IPO Objectives
The company mentioned in the DRHP that it plans to utilise the Net Proceeds for various strategic purposes. These include repayment or prepayment, in part or full, of all or certain outstanding borrowings availed by our company. The further allocation will be for general corporate purposes - The amount utilised for general corporate purposes shall not exceed 25% of the Gross Proceeds (As per DRHP).
Financials of the Company
For the FY year ended March 2024, compared to March 2023, the company's assets increased by 4.05% to Rs 2,275.14 Crore. However, revenue increased by 20.38% to Rs 1,465.18 crore, and profit after tax showed a massive increase of 729% to Rs 82.81 crore for the same period. Total borrowings increased to Rs 710.16 crore from Rs 699.23 crore as compared to FY24 from FY23. These numbers show how the company's finances have been and where exactly there is a need to make strategic changes.
Lead manager(s), Registrar of IPO & Promoter(s) of the Company
The IPO is managed by Kotak Mahindra Capital Company Limited, IIFL Securities Limited, Jefferies India Private Limited and Morgan Stanley India Company Private Limited. The company has appointed KFin Technologies Limited as the registrar for the issue, while the company has Kanumuri Ranga Raju, Krishnam Raju Kanumuri, Kanumuri Mytreyi, Sai Quest Syn Private Limited, Marigold Partners, Sunflower Partners, Tulip Partners, and Lily Partners as their promoter(s).
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