Sai Life Sciences IPO booked 84% on Day 1; check offer size, price band & more

Sai Life Sciences Ltd’s initial public offering (IPO) saw a lukewarm response from investors after it opened for subscription on Wednesday, December 11.

The mainboard issue of private equity firm TPG Capital-backed Sai Life Sciences Ltd is open for subscription on the BSE and NSE till December 13.

On the first day of subscription, the IPO was booked 84% at the end of bidding at 5 pm, the data available with the stock exchanges showed. The public offer attracted bids for more than 3.27 crore shares against over 3.88 crore shares on offer.

The retail investors applied for 35.77 lakh shares against 1.97 crore shares on offer, leading to an 18% subscription in the category. The Non-Institutional Investors (NIIs) placed bids for over 13 lakh shares compared to 84.47 lakh shares set aside for them. The NIIs’ segment was booked 15%.

The Qualified Institutional Buyers (QIBs) booked their quota 2.62 times with applications for 2.79 crore shares against 1.06 crore shares reserved for them.

Sai Life Sciences raises ₹913 crore from anchor investors

Sai Life Sciences Ltd. raised ₹913 crore from anchor investors on December 10 ahead of the issue's launch. The company allotted more than 1.66 crore equity shares to 63 fund schemes at ₹549 apiece, the upper end of the price band.

INQ Holding LLC, Fidelity Funds, SmallCap World Fund Inc, Goldman Sachs Funds, Abu Dhabi Investment Authority, Nippon India Mutual Fund (MF), BlackRock, Axis MF, HDFC MF and Kotak Mahindra MF are among the anchor investors.

Sai Life Sciences IPO details

The ₹3,043-crore IPO of Sai Life Sciences Ltd comprises a fresh issue of 1.73 crore shares, amounting to ₹950 crore, and an offer-for-sale (OFS) component of 3.81 crore shares, aggregating up to ₹2,092.62 crore.

Sai Life Sciences IPO price band has been fixed between ₹522 and ₹549 apiece. For retail investors, the minimum bid size is a single lot of 27 shares, amounting to a minimum investment of ₹14,823.

Promoter entity Sai Quest Syn Pvt. Ltd and investor shareholders TPG Asia VII SF Pte Ltd and HBM Private Equity India will partially offload their stakes through the OFS route.

Sai Quest Syn owns a 5.61% stake in Sai Life Sciences Ltd. TPG holds a 39.69% stake, while HBM Private Equity India’s shareholding is 5.5%.

Kotak Mahindra Capital Company Ltd, Morgan Stanley India Company Pvt Ltd, Jefferies India Pvt. Ltd, and IIFL Securities Ltd are the book-running lead managers for the public offer. Kfin Technologies Limited is the IPO registrar.

Sai Life Sciences IPO key dates

Sai Life Sciences Ltd IPO share allotment status is expected to be finalised on December 16. Refunds and credit of shares to the Demat accounts will be initiated on December 17.

The company has proposed to list its shares on December 18. Sai Life Sciences Ltd. shares will be listed on the NSE and BSE.

Sai Life Sciences to use IPO proceeds for debt repayment

According to the company’s RHP, Sai Life Sciences will utilise ₹600 crore of the total proceeds from the fresh issue for debt payment.

About Sai Life Sciences

Hyderabad-based Sai Life Sciences offers services across the drug discovery, development, and manufacturing value chain for small-molecule new chemical entities (NCE) to global pharmaceutical innovators and biotechnology firms.