Sai Life Sciences IPO sees strong QIB interest, subscribed 84% on Day 1

Sai Life Sciences’ Rs 3,043-crore IPO saw a subscription of 0.84 times on the first day of bidding. Qualified Institutional Buyers (QIBs) showed strong interest, subscribing 2.52 times their allocated quota. Non-Institutional Investors (NIIs) and retail investors lagged behind with subscription rates of 0.16 times and 0.18 times, respectively, as of December 11, 2024, 4:49 PM.

IPO structure and price band

The public issue includes a fresh issuance of Rs 950 crore and an offer-for-sale (OFS) of 3.81 crore shares worth Rs 2,092.6 crore. Promoter Sai Quest Syn, along with investors TPG Asia VII SF Pte and HBM Private Equity India, are the largest contributors to the OFS. The IPO price band is set between Rs 522 and Rs 549 per share.

Institutional participation

Leading domestic institutional investors such as HDFC Mutual Fund, Nippon Life India, Axis Mutual Fund, and SBI Life Insurance participated in the IPO. Foreign portfolio investors and other domestic funds like Mirae Asset and Kotak Mahindra AMC also showed interest.

Company profile

Established in 1999, Sai Life Sciences specialises in the research, development, and manufacturing of small-molecule new chemical entities. The company caters to biotech and global pharma giants, serving over 280 clients in FY24. Its notable collaborations include working with 18 of the top 25 pharmaceutical companies by revenue in 2023. Sai Life Sciences operates across major markets such as the US, UK, Europe, and Japan.

Market debut

The company's shares are scheduled to list on December 18, 2024.

Sai Life Sciences’ promising start with QIB interest indicates potential momentum in the coming days, though retail and NII participation remains muted.