TPG-backed Sai Life Sciences IPO is scheduled to open for subscription tomorrow (Wednesday, December 11).

The firm is a contract research, development, and manufacturing organisation (CRDMO) that focuses on innovation. Backed by the private equity giant TPG Capital, it provides comprehensive services throughout the entire drug discovery, development, and manufacturing process for small-molecule new chemical entities (NCEs) to pharmaceutical and biotechnology companies worldwide.

In the financial year 2024 and for the six-month period ending September 30, 2024, the company served more than 280 and 230 innovator pharmaceutical companies, respectively. This includes 18 of the top 25 pharmaceutical companies by revenue for the calendar year 2023, operating across regulated markets such as the US, the UK, Europe, and Japan.

The company operates a large manufacturing facility, referred to as the “Unit IV Bidar Facility,” located in Bidar, India. This facility serves as their primary production site. Additionally, the company have a smaller intermediate facility known as the “Unit III Bollaram Facility” in Bollaram, India, where we manufacture early-phase materials for several products. The firm also operate a facility called the “Unit II Hyderabad Facility” in Hyderabad, India, which contains their pilot manufacturing operations.

According to the red herring prospectus (RHP), the company’s listed peers include Divi’s Laboratories Ltd, with a price-to-earnings (P/E) ratio of 103.04; Suven Pharmaceuticals Ltd, with a P/E ratio of 109.37; and Syngene International Ltd, with a P/E ratio of 73.59.

Here are the 10 key things to know about Sai Life Sciences IPO:

Sai Life Sciences IPO date: The issue is scheduled to open Wednesday, December 11, and will end on Friday, December 13.

Sai Life Sciences IPO price band: The price band has been set in the range of ₹522 to ₹549 per equity share of the face value of Re 1.

Sai Life Sciences IPO lot size: 27 equity shares make up each lot in the IPO. Bids can be placed for multiples of 27 shares, with a minimum bid of 27.

Sai Life Sciences IPO details: The IPO comprises a new issuance of equity shares valued at a maximum of ₹950 crore, along with an Offer For Sale (OFS) of up to 3.81 crore equity shares by a promoter, investor shareholders, and various other shareholders, as stated in the RHP.

Under the OFS, one of the entities controlled by the promoters — Sai Quest Syn Pvt Ltd — along with investor shareholders — TPG Asia VII SF Pte Ltd and HBM Private Equity India — will divest their individual stakes.

Sai Life Sciences IPO objectives: The company proposes to use the net proceeds for the following purposes: to repay or prepay, in whole or in part, certain outstanding borrowings, as well as for general corporate purposes.

Sai Life Sciences IPO listing date and allotment details: The tentative timeline for Sai Life Sciences IPO share allotment date is Monday, December 16. Refunds will begin on Tuesday, December 17, and shares will be credited to allottees’ demat accounts the same day as the refund date. Sai Life Sciences share price is likely to be listed on BSE and NSE on Wednesday, December 18.

Lead Manager and Registrar of Sai Life Sciences IPO: Kotak Mahindra Capital Company Limited, Jefferies India Private Limited, Morgan Stanley India Company Pvt Ltd, and IIFL Securities Ltd are the book-running lead managers for the Sai Life Sciences IPO. Kfin Technologies Limited serves as the registrar for the issue.

Sai Life Sciences IPO reservation: It has set aside not less than 15% for non-institutional institutional investors (NII), a maximum of 50% of the shares for qualified institutional buyers (QIB), and a not less than 35% of the shares for retail investors.

Sai Life Sciences IPO GMP today: Sai Life Sciences IPO GMP today is +28. This indicates Sai Life Sciences share price was trading at a premium of ₹28 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Sai Life Sciences share price is indicated at ₹577 apiece, which is 5.1% higher than the IPO price of ₹549.

Based on the last five sessions of grey market activities, the current Grey Market Premium (GMP) is ₹28, indicating a downward trend. The lowest recorded GMP is ₹22, while the highest is ₹42, according to experts at investorgain.com.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.