Currently, the issue reflects no grey market premium (GMP), indicating expectations of a flat listing. However, GMP is only an indicative measure and could change as the subscription period continues.
The company set a price band of Rs 372 to Rs 392 per share for the IPO, targeting a total raise of Rs 409 crore. This comprises a fresh issue of Rs 285 crore and an offer for sale (OFS) of Rs 123.79 crore. The IPO is slated to close on Friday, March 27.
Sai Parenteral IPO subscription status
As of Day 3 at 10:45 am, the IPO was subscribed 43% of the total 75.22 lakh shares on offer.
Retail Individual Investors (RIIs) have subscribed 7% of their allotted 37.86 lakh shares, while Non-Institutional Investors (NIIs) have fully subscribed their portion at 1.08 times against 16.22 lakh shares.
Qualified Institutional Buyers (QIBs), meanwhile, have bid for 60% of the 21.12 lakh shares reserved for them.
Sai Parenteral IPO GMP today
Currently, the issue shows no grey market premium (GMP), indicating expectations of a flat listing. However, GMP is merely indicative and could fluctuate as the subscription period continues.
Sai Parenteral Limited IPO overview
Sai Parenteral Limited has announced its IPO with a price band of Rs 372 to Rs 392 per share. Retail investors can subscribe for a minimum of one lot, consisting of 38 equity shares, valued at Rs 14,896.
The IPO comprises a fresh issue of Rs 285 crore and an Offer for Sale (OFS) of Rs 123.79 crore, which includes 31,28,485 shares reserved for anchor investors. On Monday, the company raised Rs 122.63 crore from five anchor investors.
The issue allocation is structured as follows: 50% for Qualified Institutional Buyers (QIBs), up to 35% for retail investors, and 15% for Non-Institutional Investors (NIIs).
Use of IPO proceeds
The gross proceeds from the issue will be Rs 285 crore. The company will utilise Rs 110.8 crore towards capacity expansion and upgradation of manufacturing facilities, Rs 18 crore for the establishment of a new R&D centre, Rs 14 crore towards repayment of borrowings, and Rs 33 crore for its working capital requirements.
About Sai Parenteral Limited
Sai Parenteral (SPL) is a diversified pharmaceutical company engaged in branded generic formulations and CDMO (Contract Development and Manufacturing Organisation) products and services for both domestic and international markets. Its portfolio includes high-value and high-volume therapies in cardiovascular, neuropsychiatry and anti-diabetic segments, across dosage forms such as injectables, tablets, capsules, liquid orals and ointments.
Financials
In the first half of FY26 (H1FY26), Sai Parenteral Limited reported revenue from operations of Rs 303 crore, with a profit after tax (PAT) of Rs 2 crore. For FY25, the company’s revenue stood at Rs 495 crore, while PAT reached Rs 20 crore. In FY24, Sai Parenteral recorded revenue of Rs 154 crore and a PAT of Rs 8 crore. In FY23, the company’s revenue was Rs 97 crore, with a PAT of Rs 4 crore.
IPO lead managers
The book running lead manager (BRLM) is Arihant Capital Markets Ltd, and the registrar to the issue is Bigshare Services Pvt Ltd.
Should you bid?
SBI Securities recommends that investors “Subscribe” to the issue for the long term, valuing it at FY25 (proforma) P/E and EV/EBITDA multiples of 88.2x and 46.3x, respectively, based on post-issue capital, which appears to be at a premium to its peers.
“SPL operates in the branded generic formulations and CDMO businesses, with the product portfolio covering both high-value and high-volume categories across various therapeutic areas. SPL’s offerings span dosage forms such as injectables, tablets, capsules, liquid orals and ointments. Of these, injectables are a high-margin segment for the company, and it plans to increase their share in the revenue mix. We believe Noumed’s 451 dossiers offer significant growth opportunity for SPL,” the brokerage said.
(Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)