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Sai Life Sciences IPO
Sai Life Sciences Ltd
₹14,094 /27 sharesMinimum Investment
Sai Life Sciences IPO Listing Details
| Listed On | Issue Price | Listing Price | Listing Gains |
|---|---|---|---|
| -- | ₹549.00 | ₹650.00 | ₹101.00 (18.40%) |
Sai Life Sciences IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 11 Dec ‘24 - 13 Dec ‘24 | ₹14,094 | 27 | ₹522 - ₹549 |
| Issue Size | IPO Doc |
|---|---|
| 3042.62Cr | RHP PDF |
Subscription rate
As of 13 Dec'24, 04:00 PM
| Qualified Institutional Buyers | 12.05x |
| Non-Institutional Investor | 2.74x |
| Retail Individual Investor | 0.78x |
| Total | 4.30x |
About Sai Life Sciences
Founded in
1999
Managing director
Mr. Krishnam Raju Kanumuri
Parent organisation
Sai Life Sciences Ltd
Strengths & Financials of Sai Life Sciences
Strengths
Risks
During FY24 and the six months ending September 30, 2024, the company served over 280 and 230 innovator pharmaceutical companies, respectively, including 18 of the top 25 global pharmaceutical companies (in terms of revenue for the calendar year 2023). Its services cater to regulated markets such as the US, UK, Europe, and Japan.
Over the past five years and through September 30, 2024, Sai Life Sciences has supported more than 200 small molecule discovery programs. In the last three years and six months, the company has collaborated with over 160 customers.
The company claims to have implemented energy conservation initiatives in production, utilities, and effluent treatment. In FY24, it centralised air compression, installed energy-efficient pumps, and significantly increased the use of renewable energy at its Unit IV in Bidar to 89%, up from 67% in FY22, resulting in reduced carbon dioxide emissions.
Its manufacturing facilities have received certifications from major regulatory bodies, including the United States Food and Drug Administration (USFDA), Japan’s Pharmaceuticals and Medical Devices Agency (PMDA), and India’s Central Drug Standards Control Organisation (CDSCO).
Sai Life Sciences claims to be among the few Indian CRDMOs that integrate discovery and development operations across the US, UK, and India, coupled with manufacturing capabilities located in India.
Sai Life Sciences states that the company strategically operates near key innovation clusters, with facilities in Greater Boston and Manchester. These locations provide access to cutting-edge research, a skilled global workforce, and collaboration opportunities within innovation ecosystems. Additionally, the company's facilities in India offer a cost-effective advantage, enabling large-scale drug discovery, development, and commercial production.
The company has seen a consistent increase in revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 869.59 crore in FY22 to Rs 1,217.14 crore in FY23 to Rs 1,465.18 crore in FY24. PAT increased from Rs 6.23 crore in FY22, to Rs 9.99 crore in FY23 to Rs 82.81 crore in FY24
Sai Life Sciences’ financial performance is highly dependent on securing business from biotechnology and pharmaceutical clients. As a result, the company is exposed to risks and uncertainties that influence these industries, which can directly affect its operations.
The company relies heavily on its research and development (R&D) activities for future growth. If these efforts fail to deliver the expected outcomes, customers may discontinue their partnerships, jeopardising the company’s long-term growth prospects.
Sai Life Sciences operates its key manufacturing facilities in India: a large facility in Bidar (Unit IV), a smaller intermediate facility in Bollaram (Unit III), and another facility in Hyderabad (Unit II). Any interruptions or delays at these sites could affect the company’s operations and the ability to meet customer demand, which could adversely impact the company’s finances.
The company’s revenue is predominantly driven by overseas customers, contributing Rs 654.22 crore (97.40%) for the six months ending September 30, 2024, and Rs 1,438.60 crore (97.95%), Rs 1,176.19 crore (98.27%) and Rs 800.97 crore (92.16%) in FY24, FY23 and FY22 to the total revenue from contract research, development and manufacturing activities, respectively. This reliance on international markets exposes Sai Life Sciences to risks such as operational delays, sudden regulatory restrictions or any financial challenges which could impact its business and financial performance.
A substantial portion of the company’s revenue comes from a small group of key customers. The top 10 customers contributed Rs 293.43 crore (43.45%) during the six months ending September 30, 2024, and Rs 677.74 crore (46.26%), Rs 489.21 crore (40.19%), and Rs 378.52 crore (43.53%) in FY24, FY23, and FY22, respectively to the revenue from operations. Any loss of any major customer or large contract could adversely affect the company’s operations and revenue generation capabilities.
As of September 30, 2024, the company reported total borrowings of Rs 764.49 crore. Any inability to repay or service these loans could harm the company’s financial standing.
The company, its directors and promoters are involved in certain legal proceedings. Any adverse judgments in any of the cases could be detrimental to the company’s business prospects.
Sai Life Sciences Financials
*All values are in Rs. Cr
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Application Details of Sai Life Sciences IPO
| Apply as | Price band | Apply upto |
|---|---|---|
| Regular | ₹522 - 549 | ₹2 Lakh |
| High Networth Individual | ₹522 - 549 | ₹2 - 5 Lakh |
For Sai Life Sciences IPO, eligible investors can apply as Regular.