Sai Life Sciences IPO

Sai Life Sciences IPO Details

Sai Life Sciences IPO Date

The Sai Life Sciences Limited IPO will open for subscription on December 11, 2024, and the closing date for the IPO is December 13, 2024, according to the offer document filed by the company with the SEBI. After this, investors are expected to be updated about the allotment status on Monday, December 16, 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on December 17, 2024. The shares will be listed on the NSE and the BSE on Friday, December 18, 2024.

Sai Life Sciences IPO Price Band

The IPO combines a fresh issue and an offer-for-sale (OFS) component. The IPO price band has been set between ₹522 to ₹549 per share. Interested investors can choose a price within this band to apply for the IPO.

The IPO is a book-building issue of ₹3,042.62 crore, with a fresh issue of 1.73 crore shares (amounting to ₹950 crore) and an offer for sale of 3.81 crore shares (totalling ₹2,092.62 crore).

Sai Life Sciences Limited IPO listing price will be determined on December 18, 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

Sai Life Sciences IPO Lot Size

The Sai Life Sciences Limited IPO details have been declared. The minimum lot size for an application is 27 shares, and the investor would have to apply for a minimum of 1 lot. Meanwhile, the IPO issue size is approximately ₹3,042.62 crore.

Sai Life Sciences IPO Objective

The company proposes to use the IPO net proceeds worth ₹720 crore to repay/prepay, in full or part, of all or certain outstanding borrowings and for general corporate purposes.

About Sai Life Sciences

Sai Life Sciences Limited is a contract research, development, and manufacturing organisation (CRDMO) founded in 1999. Headquartered in India, the company provides end-to-end services across the drug discovery, development, and manufacturing value chain to global pharmaceutical and biotechnology companies.  

The company serves over 280 global pharmaceutical and biotechnology companies, including 18 of the top 25 pharmaceutical companies by revenue (2023), across regulated markets such as the US, UK, Europe, and Japan. The company operates with discovery research facilities in Boston and Manchester supported by large-scale research laboratories and manufacturing units in India, offering a cost-competitive advantage.

The company’s CRO and CDMO services span early drug discovery, clinical trial support, and commercial drug manufacturing, with a portfolio of 170+ innovator pharmaceutical products, including 38 APIs and intermediates for 28 commercial drugs; seven of these products generate annual sales exceeding ₹100 crore. In FY24, revenue from CRO business made up 33.85% of total revenue, while the rest was contributed by the company’s CDMO business. Meanwhile, revenue from its top ten customers made up 46.2% of overall revenue.

Sai Life Sciences has a team of 2,353 scientists, including 302 PhDs, and several approvals from agencies like USFDA and PMDA. The company is known for its sustainability efforts and strong focus on ESG practices. It is recognised for excellence in the industry.

Between FY22 and FY24, its revenue from operations rose at a CAGR of over 18.9%, while net profit rose at a CAGR of 136.9%. Moreover, the global pharmaceutical market is expected to grow at a CAGR of 6.2% from 2023 to 2028 to reach $1,956 billion, which indicates steady industry growth. The company continues to play a pivotal role in the pharmaceutical value chain, driving innovation and supporting the commercialisation of life-saving drugs.

Now, Sai Life Sciences Limited is launching its initial public offer (IPO). The total IPO issue size is ₹3,042.62 crore, comprising fresh issues and offer for sale (OFS). Its shares will be listed on the NSE and BSE.

Company Name:  Sai Life Sciences Limited

Company Established On: January, 1999

Company Type: Public Limited Company

CEO/MD: Krishnam Raju Kanumuri

 Financial snapshot

Sai Life Sciences Limited IPO Analysis

Strengths and Opportunities

1. The company offers integrated CRDMO services across discovery, development, and manufacturing, enabling customers to benefit from faster transitions, cost savings, and innovation throughout the drug development lifecycle.
2. As of September 2024, its CDMO portfolio included 50 late-phase or commercial products and 120 products in earlier development stages, showcasing expertise in technology transfer and process scalability.
3. Its discovery services grew rapidly, with over 60 integrated drug discovery programs in FY24, supported by advanced biology, chemistry, and DMPK capabilities across global and Indian facilities.
4. The company maintains strong regulatory compliance, with its manufacturing facilities approved by authorities like USFDA and PMDA, and over 250 customer audits completed by September 2024.
5. With a diversified customer base, including 18 of the top 25 global pharmaceutical firms, the company leverages strategic investments and operational efficiencies to drive growth and improve profitability.

Risks and Threats

1. The company’s heavy reliance on international markets—nearly 98% of revenue generated from customers outside India—exposes it to risks associated with global operations, including foreign exchange fluctuations, geopolitical uncertainties, and regulatory changes.
2. The company's attrition rate is high, 10.87% for the six-month period and 24.70% for the full financial year, which could impact its ability to retain skilled employees critical to business success.
3. Ongoing legal and regulatory proceedings involving the company and its directors could result in substantial costs and affect its operations, with the potential for material adverse effects if the outcomes are unfavourable.
4. The business requires extensive regulatory compliance, and any failure to obtain, maintain, or renew necessary licenses and approvals could disrupt operations and negatively affect results.
5. Manufacturing delays, under-utilisation of production capacity, or disruptions in raw material supplies from key vendors may result in increased costs and an inability to meet customer demand.
6. The company’s significant working capital requirements, coupled with risks of delayed payments or customer defaults, could strain liquidity and impact operational continuity.

How to apply for the Sai Life Sciences Limited IPO?

If you are interested to invest in Sai Life Sciences IPO, following are the steps to apply:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Sai Life Sciences IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

You can also pre-apply for the Sai Life Sciences IPO on Upstox which usually begins a day before the IPO opens for subscription.