TPG-backed Sai Life Sciences IPO: Here’s what GMP signals ahead of issue opening on Wednesday, December 11 | Stock Market News

TPG-backed Sai Life Sciences IPO is scheduled to open on Wednesday, December 11, and close on Friday, December 13. The details on allocation to anchor investors for Sai Life Sciences IPO will be out Tuesday, December 10. Sai Life Sciences IPO price band has been fixed in the range of ₹522 to 549 per equity share of face value of Re 1.

The firm is a contract research, development, and manufacturing organisation (CRDMO) that emphasizes innovation. Backed by the private equity giant TPG Capital, the firm offers comprehensive services throughout the entire drug discovery, development, and manufacturing process for small-molecule new chemical entities (NCE) to pharmaceutical innovator companies and biotechnology firms worldwide.

As per the red herring prospectus (RHP), the company’s listed peers are Divi’s Laboratories Ltd (with a P/E of 103.04), Suven Pharmaceuticals Ltd (with a P/E of 109.37), and Syngene International Ltd (with a P/E of 73.59).

For the six-month period ending in September 2024, Sai Life Sciences reported total income of ₹693.35 crore, which is an increase from ₹656.8 crore in the previous year. The company achieved a net profit of ₹28.01 crore for the six months, contrasting with a loss of ₹12.92 crore during the same period last year.

Tentatively, Sai Life Sciences IPO basis of allotment of shares will be finalised on Monday, December 16, and the company will initiate refunds on Tuesday, December 17, while the shares will be credited to the demat account of allottees on the same day following refund. Sai Life Sciences share price is likely to be listed on BSE and NSE on Wednesday, December 18.

Sai Life Sciences IPO GMP today

Sai Life Sciences IPO GMP today is +37.50. This indicates Sai Life Sciences share price was trading at a premium of ₹37.50 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Sai Life Sciences share price is indicated at ₹586.5 apiece, which is 6.83% higher than the IPO price of ₹549.

Today, the Grey Market Premium (GMP) for the upcoming IPO is demonstrating a positive upward trend, reflecting growing investor confidence. Over the last four sessions of grey market activities, the GMP has varied between ₹22 and ₹42, according investorgain.com experts.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Sai Life Sciences IPO details

The IPO comprises a new issuance of equity shares valued at a maximum of ₹950 crore, along with an Offer For Sale (OFS) of up to 3.81 crore equity shares by a promoter, investor shareholders, and various other shareholders, as stated in the RHP.

Under the OFS, one of the entities controlled by the promoters — Sai Quest Syn Pvt Ltd — along with investor shareholders — TPG Asia VII SF Pte Ltd and HBM Private Equity India — will divest their individual stakes.

Bharathi Srivari, Anita Rudraraju Nandyala, Raju Penmasta, Dirk Walter Sartor, Jagdish Viswanath Dore, Rajagopal Srirama Tatta, and K Pandu Ranga Raju are among the other shareholders who will also sell their portions of the company. At the upper band of the price range, the firm is expected to raise approximately ₹3,042.62 crore through the IPO.

Kotak Mahindra Capital Company Ltd, IIFL Capital Services Ltd (previously known as IIFL Securities Ltd), Jefferies India, and Morgan Stanley India Company are the lead managers for the book running process, whereas KFin Technologies serves as the registrar for the IPO.

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