The retail quota was booked 3%, while the non-institutional portion was subscribed 15%. The qualified institutional buyers stayed away from the issue on the first day.
The company plans to raise Rs 409 crore through the issue which is a combination of an offer for sale (OFS) and issuance of fresh equity. Ahead of the opening, the grey market premium (GMP) indicated a muted listing. The IPO will close on Friday March 27.
About Sai Parenteral’s IPO
The company has set the price band at Rs 372– 392 per share and retail investors can make applications for a minimum of 1 lot which comprises 38 equity shares amounting to Rs 14,896.The IPO’s fresh issue aggregates up to Rs 285 crores while the OFS aggregates up to Rs 123.79 crores which includes anchor investor portion of 31,28,485 equity shares.
The company raised Rs 122.63 crore on Monday through five anchor investors.
It has reserved 50% of the issue for qualified institutional buyers (QIBs), up to 35% for retail investors and 15% for non-institutional investors (NIIs).
Sai Parenteral’s IPO GMP
Shares of Sai Parenteral’s were not commanding any grey market premium (GMP) ahead of the opening of the issue. This implies a flat listing. The GMP is only an indicative price and could change as the issue progresses.
Sai Parenteral’s IPO net proceeds
The gross proceeds from the issue will be to the tune of Rs 285 crore. The company will utilise Rs 110.8 crore towards capacity expansion and upgradation of manufacturing facilities, Rs 18 crore for 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’s
Sai Parenteral’s (SPL) is a diversified pharmaceutical formulations company engaged in the business of branded generic formulations and Contract Development and Manufacturing Organisation (CDMO) products & services for the domestic and international markets. The company’s portfolio includes formulation products, covering both high-value and high-volume categories across therapeutic areas like cardiovascular, neuropsychiatry, anti-diabetic, etc., with offerings across dosage forms such as injectables, tablets, capsules, liquid orals and ointments.
Sai Parenteral’s Financials
The company’s revenue from operations in H1FY26 stood at Rs 303 crore while its profit after tax (PAT) stood at Rs 2 crore. For FY25, revenue stood at Rs 495 crore versus Rs 154 crore in FY24 and Rs 97 crore in FY23. The PAT stood at Rs 20 crore in FY25 versus Rs 8 crore in FY24 and Rs 4 crore in FY23.
Sai Parenteral’s IPO lead managers
The Book Running Lead Managers (BRLMs) is Arihant Capital Markets Ltd while 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/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 across dosage forms such as injectables, tablets, capsules, liquid orals and ointments. Of these, the injectables dosage is a high margin segment for the company, and it plans to increase the share of injectables in the total revenue mix in the coming years. We believe Noumed’s 451 dossiers offer huge growth opportunity for SPL,” this 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.)