Sai Life Sciences gears up for IPO, files draft prospectus with SEBI

15 Jul 2024 , 03:48 PM

TPG-backed Sai Life Sciences has filed a draft red herring prospectus with the Securities Exchange Board of India to obtain funds through an initial public offering (IPO).

According to the DRHP, the IPO consists of a fresh issue of ₹800 Crore and an offer by existing shareholders and promoters to sell up to 61.57 million shares.

The OFS includes up to 6.45 million shares of Sai Quest Syn Pvt Ltd, 45.72 million shares of TPG Asia VII SF Pte, and up to 6.86 million shares of HBM Pvt Equity India, among others.

The lead managers for the issuance are Kotak Mahindra Capital, IIFL Capital Services, Jefferies India Pvt, and Morgan Stanley India Company.

The ₹600-Crore revenues from the new issuance would be utilised to service debt. As of March 2024, our company’s total outstanding borrowings on a consolidated basis were ₹710.16 Crore.

The company is a contract research, development, and manufacturing organisation (CRDMO) that provides comprehensive drug discovery, development, and manufacturing services for small molecule NCEs to worldwide pharmaceutical and biotech businesses. It offers both discovery/contract research and CMC/contract development and production capabilities.

The firm’s portfolio is diversified, including commercial, late-stage, and early-stage CMC compounds, as well as discovery programmes. As of March 31, 2024, no customer accounted for more than 9.55% of its revenue. It is one of the few Indian CRDMOs with integrated discovery and development operations in the United States, the United Kingdom, and India, as well as manufacturing facilities in India.

Its income for fiscal year 24 was ₹1,465.18 Crore, up from ₹1,217.14 Crore the previous year. FY24 net profit was ₹82.81 Crore, compared to ₹9.99 Crore in FY23.

The company provides services through globally authorised manufacturing and R&D facilities, backed by a qualified workforce of 2,125 scientific employees, including 276 PhDs and 1,343 master’s degree holders. Its manufacturing facilities have been approved by the USFDA, PMDA, and CDSCO.

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