Sai Life Sciences IPO opens on Dec 11: Check offer size, price band, business model and other key details

Sai Life Sciences IPO: Pharmaceutical company Sai Life Sciences Ltd will hit the primary market on December 11 to raise around ₹3,042.62 crore through its initial public offering (IPO).

The maiden public issue of the contract research, development and manufacturing services provider comprises a fresh issue of 1.73 crore shares, worth ₹950 crore, and an offer-for-sale (OFS) of 3.81 crore shares, amounting to ₹2,092.62 crore.

The IPO will close for bidding on Friday, December 13.

The company has proposed to list its shares on the BSE and NSE.

Here are the key details about Sai Life Sciences IPO ahead of subscription:

Sai Life Sciences business model

Sai Life Sciences Ltd is a contract research, development, and manufacturing organisation (CRDMO). The company provides services to global pharma companies and biotechnology firms in the area of drug discovery, development, and manufacturing value chain, for small molecule new chemical entities (NCE).

Sai Life Sciences key financials

Sai Life Sciences key strengths

• Sai Life Sciences is one of the leading integrated Indian CRDMOs in terms of revenue from operations for 2023-24. The company has capabilities across drug discovery, development and manufacturing value chain which help it provide complete end-to-end services to customers.
• CDMO platform with a diverse mix of commercial and under-development molecules covers the full value chain for intermediates and APIs.
• The company has a fast-growing integrated discovery capabilities with focus on biology, chemistry and DMPK services. Its Discovery business grew at a CAGR of 34.77% from FY22 to FY24.
• The company has long-standing relationships with a diverse base of existing and new customers.

Sai Life Sciences key risks

• The company has highlighted risks of dependence on some large customers for revenue growth. Its largest customer contributed 8 % and 9.55% of the total revenue from operation for April-September 2024 and the year ended March 31, 2024, respectively. The potential loss of major customers or any of our large contracts could materially and adversely affect our business, financial condition and results of operations.
• Our subsidiary, Sai Life Sciences Inc. has incurred losses in the April-September period of FY25 and the last two financial years. The arm may also incur losses in the future, which may adversely impact its business and the value of the Equity Shares.
• The company in its RHP has highlighted supplier risks as three large suppliers accounted for nearly 15% of its raw material cost in April-September period of FY25. Any disruption in supplies could impact its business.
• Its financial performance depends on the ability to secure business from biotechnology and pharmaceutical customers and consequently may be subject to risks, uncertainties and trends that affect our customers in these industries.

Sai Life sciences competitors

The domestic and international CRDMO industry is a highly competitive market with the presence of several companies. Its key competitors include Wuxi Apptec, Pharmaron , Charles River Lab, Divi’s Lab, Syngene, Aragen, Anthem and Suven Pharma.

Sai Life Sciences IPO key dates