TPG-backed Sai Life Sciences IPO opens today
Private equity major TPG Capital-backed Sai Life Sciences’ initial public offering opens today to public at a price band of ₹522-549. The ₹3,043-crore IPO, that consists of fresh issue (₹950 crore) and offer-for-sale of 3.81 crore shares valued ₹2,092 crore, will close on Friday. The market lot is 27 shares.
Under the OFS, one of the promoter entities — Sai Quest Syn Private Limited — and investor shareholders — TPG Asia VII SF Pte Ltd, HBM Private Equity India — will offload a part of their respective stakes. At present, Sai Quest Syn holds a 5.61 per cent stake in the company, TPG owns 39.69 per cent, and HBM Private Equity India 5.5 per cent.
While the retail quota is 35 per cent and QIB is 50 per cent, HNIs (non-institutional investors) can subscribe up to 15 per cent.
The Hyderabad-based company on Tuesday raised ₹913 crore from anchor investors, as part of IPO process. According to the circular, Sai Life Sciences has allotted more than 1.66 crore equity shares to 63 funds at ₹549 apiece to anchor investors who included INQ Holding LLC, SmallCap World Fund Inc, Fidelity Funds, Abu Dhabi Investment Authority, Goldman Sachs Funds, BlackRock, Nippon India Mutual Fund (MF), HDFC MF, Axis MF and Kotak Mahindra MF.
Of the IPO proceeds from fresh issue, funds to the tune of ₹600 crore will be used for debt payment and a portion for corporate general purposes.
Sai Life Sciences is one of the largest integrated CRDMOs among listed Indian peers in terms of revenue as of FY24, serving as a one-stop platform for discovery, development and manufacturing.
The company has established capabilities across drug discovery, development and manufacturing value chain. This provides several advantages including the ability to provide end-to-end support from discovery to commercialisation as well as multiple entry points to acquire customers in intermediate stages of the discovery to commercialization journey. By establishing and maintaining connections through the drug development process, the company builds long- standing relationships with its clients.
According to the F&S report, the India CRDMO market (contract research, development and manufacturing organisation) was among the fastest growing in the APAC during 2018-2023.
Kotak Mahindra Capital Company, IIFL Securities, Jefferies India Private Limited and Morgan Stanley India Company Private Limited are the book-running lead managers for the company’s IPO.
