Sai Life Sciences IPO: GMP, subscription status, should you apply as the issue ends today | Stock Market News

Sai Life Sciences IPO: The initial public offering (IPO) of Sai Life Sciences Ltd ends today. The IPO opened for subscription on December 11 has been fully subscribed so far. Sai Life Sciences IPO is a book-built issue worth ₹3,042.62 crore and the shares are being sold at a price band of ₹522 to ₹549 per share.

Sai Life Sciences is a manufacturer of small-molecule new chemical entities and offers tailor-made services to biotech firms and global pharma companies.

Sai Life Sciences IPO enters the third and the last day of the bidding process today, December 13. Let us take a look at Sai Life Sciences IPO GMP, subscription status, other key details and should you subscribe to the mainboard IPO on the last day.

Sai Life Sciences IPO Subscription Status

Sai Life Sciences IPO has been subscribed 1.25 times so far as the issue received bids for 4.86 crore equity shares as against 3.88 crore shares on the offer, according to NSE data at the end of December 12, the second day of the bidding process.

The issue has been booked 42% in the retail investors category, 59% in the Non Institutional Investors (NII) category and 3.32 times in the Qualified Institutional Buyers (QIBs) category so far.

Sai Life Sciences IPO GMP Today

Sai Life Sciences shares are showing a muted trend in the unlisted market with lower grey market premium (GMP). Sai Life Sciences IPO GMP today is ₹18 per share, according to stock market observers. This indicates that in the grey market, Sai Life Sciences shares are trading at ₹567 apiece, a premium of 3% to the IPO price of ₹549 per share.

Sai Life Sciences IPO: Should you apply?

Sai Life Sciences is one of the largest integrated CRDMOs in India among listed peers and has established capabilities across the discovery, drug development and commercial manufacturing value chain. Although the company may seem slightly overvalued compared to its closest peer, the company has delivered Revenue/ EBITDA/ PAT CAGR of 29.8%/ 53.4%/ 264.7%, respectively, between FY22-FY24.

Further, repayment of debt from the proceeds of the issue will reduce finance costs by ~ ₹56 crore thus augmenting profitability going forward, said SBI Securities.

Sai Life Sciences IPO is valued at FY24 P/E and EV/EBITDA multiples of 137.9x and 38.6x respectively based on the upper price band on the post-issue capital. We recommend subscribing to the issue for long-term investment horizon, said the brokerage firm.

According to BP Equities, Sai Life Sciences IPO is priced at a P/E of 121.2x at the upper price band based on FY24 earnings.

“While the valuation appears high, the company’s strong performance and favorable industry trends make it a promising opportunity for medium to long-term investors. Therefore, we recommend a “Subscribe” rating for this issue,” said BP Equities.

Sai Life Sciences IPO Details

Sai Life Sciences IPO opened for subscription on Wednesday, December 11, and will close today, December 13. The IPO allotment is expected to be finalized on December 16, and the IPO listing date is likely December 18. Sai Life Sciences shares will be listed on both the stock exchanges – BSE and NSE.

Sai Life Sciences IPO price band is fixed at ₹522 to ₹549 per share. At the upper-end of the price band, the company plans to raise ₹3,042.62 crore from the public issue which is a combination of fresh issue of 1.73 crore equity shares worth ₹950.00 crore and an offer-for-sale (OFS) component of 3.81 crore shares aggregating to ₹2,092.62 crore.

The company proposes to utilise the net issue proceeds towards repayment or prepayment in full or part, of all or certain of its outstanding borrowings and general corporate purposes.

Kotak Mahindra Capital, Jefferies India, Morgan Stanley India Company and IIFL Securities are the book running lead managers of the Sai Life Sciences IPO, while Kfin Technologies is the IPO registrar.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.