9 things you need to know about Sai Life Sciences IPO

Hyderabad-based life sciences firm Sai Life Sciences' initial public offer (IPO) opens to the retail investors on Wednesday (December 11). The Rs 3,043-crore IPO will conclude on Friday.

Here are 10 things you should know about the IPO.

1. Private equity major TPG Capital is a key investor in Sai Life Sciences.

2. On Tuesday (December 11), Sai Life raised Rs 913 crore from anchor investors, ahead of the retail launch of the IPO.

3. INQ Holding LLC, SmallCap World Fund Inc, Fidelity Funds, Abu Dhabi Investment Authority, Goldman Sachs Funds, BlackRock, Nippon India Mutual Fund (MF), HDFC MF, Axis MF and Kotak Mahindra MF are among the anchor investors in the IPO. According to the BSE circular, Sai Life Sciences has allotted more than 1.66 crore equity shares to 63 funds at Rs 549 apiece, which is at the upper end of the price band. This takes the transaction size to Rs 913 crore.

4. The IPO opens on December 11 and closes on December 13. The price band for the issue is Rs 522 to Rs 549 apiece.

5. The proposed IPO comprises fresh issue of equity shares worth Rs 950 crore and an offer for sale (OFS) of 3.81 crore shares valued Rs 2,092 crore, at the upper end of the price band, by a promoter, investor shareholders and other shareholders.

6. Under the OFS, one of the promoter entities — Sai Quest Syn Pvt Ltd — and investor shareholders TPG Asia VII SF Pte Ltd, HBM Private Equity India will partly offload their respective stakes. At present, Sai Quest Syn holds a 5.61 per cent stake in the company, TPG owns 39.69 per cent, and HBM Private Equity India 5.5 per cent.

7. Of the IPO proceeds, funds to the tune of Rs 600 crore will be used for debt payment and a portion for corporate general purposes.

8. Sai Life Sciences provides end-to-end services across the drug discovery, development and manufacturing value chain for small molecule new chemical entities (NCE) to global pharmaceutical innovator companies and biotechnology firms. According to an F&S report, the India CRDMO market (contract research, development and manufacturing organisation) was among the fastest growing in the APAC during 2018-2023. This growth is expected to continue, with the Indian market projected to grow 14 per cent between 2023 and 2028, reaching an estimated value of USD 14.1 billion in 2028.

9. Kotak Mahindra Capital Company, IIFL Securities, Jefferies India Private Limited and Morgan Stanley India Company Private Limited are the book-running lead managers for the company's IPO.

With agency inputs