Sai Life Sciences Limited, a leading contract research, development, and manufacturing organization (CRDMO), is set to launch its much-anticipated Initial Public Offering (IPO) on December 11, 2024. This IPO aims to raise approximately ₹3,042.62 crore through a combination of fresh issue and offer-for-sale (OFS). Here's everything you need to know about the Sai Life Sciences IPO, including the price band, lot size, business model, and key financials.
Sai Life Sciences IPO Details
- IPO Open Date: December 11, 2024
- IPO Close Date: December 13, 2024
- Price Band: ₹522 to ₹549 per share
- Lot Size: 27 shares per lot
- Minimum Investment: ₹14,823 per application (retail investors)
Issue Size:
- Fresh Issue: 1.73 crore shares (₹950 crore)
- Offer-for-Sale (OFS): 3.81 crore shares (₹2,092.62 crore)
- Listing Exchanges: BSE and NSE
- Listing Date: December 18, 2024
Sai Life Sciences Business Model
Sai Life Sciences operates as a contract research, development, and manufacturing organization (CRDMO), offering services across the pharmaceutical and biotechnology value chain. Their expertise lies in drug discovery, development, and manufacturing of new chemical entities (NCEs) for global pharmaceutical companies.
Key Services:
CRO Services:
Provides integrated discovery capabilities in biology, chemistry, and drug metabolism and pharmacokinetics (DMPK).
Supported over 200 small molecule discovery programs in the past five years.
CDMO Services:
Focused on developing and scaling production of active pharmaceutical ingredients (APIs) and intermediates.
As of September 2024, the portfolio includes 38 APIs and intermediates used in manufacturing 28 commercial drugs.
Sai Life Sciences Financial Performance
Revenue from Operations:
H1FY25: ₹675.2 crore
FY24: ₹1,465.17 crore
Profit After Tax (PAT):
H1FY25: ₹28 crore
FY24: ₹82.80 crore
Sai Life Sciences Strengths
Integrated CRDMO Capabilities: Offers end-to-end services across the drug discovery, development, and manufacturing value chain.
Strong CDMO Platform: Diverse portfolio of commercial and under-development molecules covering intermediates and APIs.
Fast-Growing Discovery Services:
Discovery business grew at a CAGR of 34.77% from FY22 to FY24.
Long-Standing Customer Relationships: Trusted partner to leading global pharma and biotech firms.
Key Risks
Revenue Dependence: Heavy reliance on major customers (largest customer contributed 8% and 9.55% of revenue in H1FY25 and FY24, respectively).
Supplier Risks: Three large suppliers accounted for 15% of raw material costs in H1FY25.
Subsidiary Losses: Sai Life Sciences Inc., a U.S. subsidiary, incurred losses in the last two financial years and may continue to face challenges.
Industry Dependency: Performance depends on securing contracts from pharmaceutical and biotech companies, making it vulnerable to industry trends and uncertainties.
Sai Life Sciences Competitors
The CRDMO market is highly competitive, with key players like Wuxi AppTec, Pharmaron, Charles River Labs, Divi’s Laboratories, Syngene International, Aragen Life Sciences, Anthem Biosciences, and Suven Pharmaceuticals.
Sai Life Sciences IPO Timeline
- IPO Open Date: December 11, 2024
- IPO Close Date: December 13, 2024
- Share Allotment Date: December 16, 2024
- Refund/Share Credit Date: December 17, 2024
- Listing Date: December 18, 2024
Disclaimer -- This article does not provide any recommendation, investors are requested to consult there financial advisor before making any investment.