Sai Life Sciences Limited IPO (Sai Life Sciences IPO) Detail Review –
Sai Life Sciences Limited IPO (Sai Life Sciences IPO) is set to open for subscription from 11th Dec 2024 to 13th Dec 2024. In this article we will analyze the financials , strengths and weaknesses of the Sai Life Sciences Limited IPO (Sai Life Sciences IPO). Keep scrolling below to read more!
Sai Life Sciences Limited IPO (Sai Life Sciences IPO) Overview –
Established in January 1999, Sai Life Sciences Limited researches, develops, and produces small-molecule new chemical entities. The company offers customized services to biotech companies and global pharmaceutical companies.
In the FY 2024 and for the month ending September 30, 2024, the company provided services to over 280 innovator pharmaceutical companies, including more than 230 in that month alone. Among these clients, the company worked with 18 of the top 25 pharmaceutical companies based on their revenue in the calendar year 2023.The services were offered across countries such as the US, the UK, Europe, and Japan.
The company’s business development team consists of 16 experienced and highly qualified professionals, of whom six are located in the USA, nine in the UK and Europe, and one resides in Japan.
The company offers the following services:
- Capabilities in chemistry, manufacturing, and control(‘CMC’) or contract development and manufacturing organizations (‘CDMO’).
- CRO services include integrated discovery (“Discovery”) capabilities across biology, chemistry, drug metabolism and pharmacokinetics.
As of September 30, 2024, the company had 2,353 scientific staff, with the majority of the scientific team holding advanced degrees, including 302 Ph.D and 1,475 master’s degrees.
As of September 30, 2024, the company had 3135 employees with capabilities across the CRDMO value chain.
Competitive Strength:
- As an integrated CRDMO, the company provide a complete platform for discovery, development, and manufacturing.
- CRO services include integrated discovery capabilities across biology, chemistry, and drug metabolism and pharmacokinetics.
- CDMO platform with a diverse mix of commercial and under-development molecules
Sai Life Sciences Limited IPO (Sai Life Sciences IPO) Synopsis-
Sai Life Sciences Limited IPO (Sai Life Sciences IPO) is set to be open for subscription from 11th Dec 2024 to 13th Dec 2024, offering combination of fresh issue of 1.73 crore shares aggregating to Rs 950.00 crores and offer for sale of 3.81 crore shares aggregating to Rs 2,092.62 crores. This NSE,BSE IPO follows a Book Built Issue IPO with tentative listing date fixed as Wednesday, December 18, 2024.
The total issue size of this IPO amounts to Rs. 3,042.62 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 11th Dec 2024 |
| Closing Date | 13th Dec 2024 |
| Lot Size | 27 Shares |
| Face Value | Rs 1 |
| IPO Size | Rs. 3,042.62 Cr |
| Fresh Issue | Rs. 900.00 Cr |
| IPO Price Range | Rs. 522 – 549 |
| Min. Investment | Rs. 14,823 |
| Offer for Sale (OFS) | Rs. 2,092.62 Cr |
| Employee Discount | — |
| Basis of Allotment | 16th Dec 2024 |
| Refunds | 17th Dec 2024 |
| Listing Date | 18th Dec 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Sai Life Sciences Limited IPO (Sai Life Sciences IPO) Market Lot
Sai Life Sciences Limited IPO (Sai Life Sciences IPO) minimum market lot is 27 shares with ₹14,823 application amount. The retail investors can apply up to 13 lots with 351 shares or ₹1,92,699 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 27 | ₹14,823 |
| Retail Maximum | 13 | 351 | ₹1,92,699 |
| S-HNI Minimum | 14 | 378 | ₹2,07,522 |
| S-HNI Maximum | 67 | 1,809 | ₹9,93,141 |
| B-HNI Minimum | 68 | 1,836 | ₹10,07,964 |
Sai Life Sciences Limited IPO (Sai Life Sciences IPO) Book Running Lead Managers –
- Kotak Mahindra Capital Company Limited
- Jefferies India Private Limited
- Morgan Stanley India Company Pvt Ltd
- Iifl Securities Ltd
Sai Life Sciences Limited IPO (Sai Life Sciences IPO) Registrar to the offer –
The registrar for the Sai Life Sciences Limited IPO (Sai Life Sciences IPO) is Kfin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company desires to use the Net Proceeds from the Issue to fulfill its following goals:
- Repayment/prepayment in full or part, of all or certain outstanding borrowings availed by the Company and
- General corporate purposes
Key Performance Indicator –
The market capitalization of Sai Life Sciences Limited IPO is Rs 11,418.63 Cr.
KPI as of March 31, 2024.
| KPI | Values |
| ROE: | 8.49% |
| ROCE: | 10.26% |
| EBITDA Margin: | 20.48% |
| PAT Margin: | 5.65% |
| Debt to equity ratio: | 0.75 |
| Earning Per Share (EPS): | ₹4.57 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 8.50% |
| Net Asset Value (NAV): | ₹53.83 |
Financial Status –
Sai Life Sciences Limited’s revenue increased by 20% and profit after tax (PAT) rose by 729% between the financial year ending with March 31, 2024 and March 31, 2023.
Below is the synopsis of the company’s financial data for the financial year that concluded on 30 Sept 2024.
The company’s total assets are Rs. 2,476.68 crore.
The company’s total revenue is Rs. 693.35 crore.
The company’s PAT is Rs. 28.01 crore.
The company’s net worth is Rs. 1,044.75 crore
| Period Ended | 30 Sept 2024 | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 | ||||||||||||||||||||||||||||||||||||
| Total Assets | 2,476.68 | 2,275.14 | 2,186.65 | 2,164.23 | ||||||||||||||||||||||||||||||||||||
| Revenue from operations | 693.35 | 1,494.27 | 1,245.11 | 897.74 | ||||||||||||||||||||||||||||||||||||
| Profit After Tax | 28.01 | 82.81 | 9.99 | 6.23 | ||||||||||||||||||||||||||||||||||||
| Net Worth | 1,044.75 | 974.34 | 887.29 | 877.76 | ||||||||||||||||||||||||||||||||||||
| Reserves and Surplus | 1,025.44 | 953.99 | 867.43 | 859.17 | ||||||||||||||||||||||||||||||||||||
| Total Borrowing | 764.49 | 710.16 | 699.23 | 751.32 | ||||||||||||||||||||||||||||||||||||
| Amount in ₹ Crore | ||||||||||||||||||||||||||||||||||||||||
Evaluation of P/E Ratio :
Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.57 from the last year, the resulting P/E ratio is 120.13x.
Considering the weighted EPS of Rs.2.53 for the last three years, the P/E ratio is 217x.
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is 95.33x.
In simple words, the P/E ratio of Sai Life Sciences Limited IPO (120.13x), compared with the industry’s average P/E (95.33x), has an overvaluation (on a P/E ratio basis only). Hence the price of the Share seems aggressively priced for the investors when considered based on the average P/E ratio of the industry.
Peers of Sai Life Sciences Limited IPO (Sai Life Sciences IPO) –
| Company Name | EPS (Basic) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio | Income | Financial statements |
|---|---|---|---|---|---|---|---|
| Sai Life Sciences Limited | 4.57 | 53.83 | 8.5 | 1,465.17 Crore | Consolidated | ||
| DIVI’S LABORATORIES Limited | 60.27 | 511.21 | 103.04 | 11.79 | 6.72 | 7,845.oo Crore | Consolidated |
| Suven Pharmaceuticals Limited | 11.8 | 94.04 | 109.37 | 14.64 | 7.2 | 1,051.35 Crore | Consolidated |
| Syngene International Ltd | 12.71 | 105.91 | 73.59 | 11.98 | 6.69 | 3,488.60 Crore | Consolidated |
Dividend Policy
Rs.38.33 Million as interim dividend has been paid by the company in FY23.
Sai Life Sciences Limited IPO (Sai Life Sciences IPO) Strengths –
Having been born in an integrated CRDMO environment, the company boasts a comprehensive platform for discovery, development, and manufacturing.
These include integrated CRO services with discovery capabilities across biology, chemistry, drug metabolism, and pharmacokinetics.
A CDMO platform with a truly heterogeneous mix of both commercial and under-development molecules.
Sai Life Sciences Limited IPO (Sai Life Sciences IPO) Weakness –
Financial performance becomes dependent on its ability to secure business from biotechnology and pharmaceutical customers, and as a result, the company may be subject to risks, uncertainties, and trends that affect its customers in these areas.
If the customers do not develop or commercialize viable drugs, as may be the case depending on certain industry-related hurdles, business may be negatively impacted.
The company uses animals for testing, which might lead to negative PR liability and other problems, such as possible facility disruption from anti-animal testing protests.
Sai Life Sciences Limited IPO (Sai Life Sciences IPO) Status –
Sai Life Sciences Limited IPO (Sai Life Sciences IPO) allotment status will be available on the KFin Technologies Limited website. Click on this link to get allotment status.
Sai Life Sciences Limited IPO (Sai Life Sciences IPO) GMP Today –
IPO’s last GMP is ₹31, last updated 10th Dec 2024. With the price band of 549.00, IPO’s estimated listing price is ₹580(cap price + today’s GMP). The expected percentage gain/loss per share is 5.65%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Disclaimer:
- IPO Grey Market Premium(Sai Life Sciences Limited GMP) mention is valid for the specific date mentioned in the header
- We are not buying and selling IPO forms on IPO Grey Market.
- Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing. Subscribe only after considering fundamentals of the companies.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
