Sai Life Sciences made a strong debut on Dalal Street on December 18, 2024, with its shares listing at a 20.2% premium on the BSE at ₹660 per share, and an 18.3% premium on the NSE, where the stock opened at ₹650 per share. This marked a solid start for the company’s ₹3,042.62 crore IPO, reflecting investor confidence in its business model and growth prospects.

The Sai Life Sciences IPO was a combination of a fresh issue and an offer for sale (OFS) of equity shares. The IPO had a price band of ₹522 to ₹549 per share, with a lot size of 27 shares. The issue opened for subscription on December 11, 2024, and closed on December 13, 2024. It was met with a strong investor response, being subscribed 10.26 times overall.

Breaking down the subscription figures, Qualified Institutional Buyers (QIBs) showed the most significant interest, subscribing to the reserved portion 30.90 times. The Non-Institutional Investors (NIIs) subscribed 4.92 times, while Retail Individual Investors (RIIs) subscribed 1.37 times their allotted portion. These figures suggest a higher demand from institutional investors, which indicates strong faith in the company’s long-term growth potential.

The company plans to utilize the net proceeds from the fresh issue for the repayment or prepayment of outstanding borrowings, helping to reduce its debt burden. Additionally, the funds will be used for general corporate purposes, which could support its ongoing operations and growth initiatives.

Sai Life Sciences, established in January 1999, is a global leader in contract research (CRO) and contract development and manufacturing (CDMO) services. The company specializes in small-molecule new chemical entities (NCEs), offering research, development, and manufacturing services to global pharmaceutical and biotech firms. It operates in key markets, including the US, UK, Europe, and Japan, where it serves a wide range of clients across the pharmaceutical industry.

As of September 30, 2024, Sai Life Sciences employed 3,135 individuals, with 2,353 scientific staff who support its research and development efforts. The company has a dedicated business development team of 16 professionals located across these regions, which helps expand its client base and secure new contracts.

The listing of Sai Life Sciences shares at a premium reflects the market’s optimism regarding the company’s growth prospects, especially in the contract research and manufacturing sectors, which are expected to grow in demand as global pharmaceutical companies continue to outsource these critical services. The company’s successful IPO debut positions it well for the next phase of its growth, supported by its strong institutional backing and solid financial performance.

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