IPO News: Sai Life Sciences' IPO has opened for subscription from Wednesday (11 December 2024) i.e. today. Interested investors can bid for this IPO till Friday (13 December 2024). The company wants to raise Rs 3,043 crore through this IPO.

Price band and IPO structure

The price band for the IPO has been fixed between Rs 522-549 per share. The market capitalization of the company is expected to reach Rs 11,420 crore after the issue. The IPO consists of a fresh issue of Rs 950 crore and an offer-for-sale (OFS) of Rs 2,093 crore. Purpose of the IPO Out of the funds raised through the IPO, the company will use Rs 720 crore to partially or fully repay the existing dues. The remaining Rs 230 crore will be used for general corporate purposes. What does the company do? Sai Life Sciences was founded in 1999 and is an innovator-focused, contract research, development and manufacturing organization (CRDMO). Should I subscribe?

 

• Aditya Birla Money

Aditya Birla Money has a 'subscribe for long term' rating on the issue.

The brokerage expects Sai Life Sciences to benefit from strong conditions in the $250 billion global CDMO market. The company has a reactor capacity of around 524 kL and a portfolio of 38 products supporting 28 commercial drugs. However, uncertainty over the US Biosecure Act, regulatory action or meeting certification standards could impact revenues.

KR Choksey Research
 

• KR Choksey Research has recommended 'not subscribing' to the IPO.

Sai Life benefits from a strong product pipeline serving over 280 clients, including 18 of the top 25 pharma companies globally. But its significant dependence on key clients, limited diversification in treatment segments and high infrastructure costs pose risks to its profitability.

This premium valuation of 138 times price-to-earnings, along with operational risks and margin pressures limit its attractiveness despite the growth potential in the global CRDMO market, KR Choksey said.