amina.finowings
Sai Life Sciences IPO is a book-built issue of Rs. 3,042.62 crore (55.42 million shares) by Sai Life Sciences Limited, founded in 1999. The company specializes in the development and production of new molecules and chemical entities for biotech and pharmaceutical companies globally. For FY2024 (as of September 30), Sai Life Sciences served over 280 innovator pharmaceutical companies across the US, UK, Europe, and Japan.
The Sai Life Sciences IPO consists of a fresh issue of 1.73 crore shares (Rs. 950 crore) and an offer for sale (OFS) of 3.81 crore shares (Rs. 2,092.62 crore). The issue price is set between Rs. 522 and Rs. 549 per share, with a listing date of December 18, 2024.
Financials
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Revenue for FY2024 was Rs. 693.35 crore, up from Rs. 1,245.11 crore in FY2023.
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PAT increased by 729%, from Rs. 9.99 crore in FY2023 to Rs. 82.81 crore in FY2024.
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The company has over 2,350 scientific personnel, including 302 Ph.Ds and 1,475 master’s degrees.
IPO Details
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Issue Size: Rs. 3,042.62 crore (55.42 million shares)
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Face Value: Rs. 1 per share
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Price Band: Rs. 522 – Rs. 549 per share
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IPO Dates: 11 to 13 December 2024
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Listing: BSE, NSE on 18 December 2024
Use of Proceeds
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Repayment of outstanding debts
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General corporate purposes
Risks & Evaluation Despite solid growth, the IPO is priced aggressively with a P/E ratio of 120.13x, compared to the industry average of 95.33x, signaling potential overvaluation.
Conclusion Sai Life Sciences IPO offers a unique investment opportunity with its strong presence in the CRDMO sector, a robust client base of leading global pharmaceutical companies, and impressive financial growth. However, the IPO is priced aggressively compared to industry peers, with a high P/E ratio, which raises valuation concerns. While the company’s innovative capabilities and integrated service offerings are key strengths, risks such as customer dependency and ethical concerns around animal testing should be considered. Investors should carefully evaluate the growth potential and valuation before making an investment decision.
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