Sai Life Sciences Limited IPO

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They are a leading Contract Research, Development, and Manufacturing Organization (CRDMO) providing comprehensive services across the drug discovery, development, and manufacturing value chain for small molecule New Chemical Entities (NCEs).

Their focus is on serving global pharmaceutical innovators and biotechnology companies, leveraging their dual expertise in:
i. Contract Research (CRO): Supporting drug discovery and research.
ii. Contract Development and Manufacturing (CDMO): Handling chemistry, manufacturing, and control (CMC) aspects.

Global Reach:
They operate globally with research labs near innovation hubs in Watertown, MA, USA, and Manchester, UK, complemented by cost-effective labs and manufacturing units in India.

Customer Base:
i. Served 280+ pharmaceutical innovators in FY 2024, including 18 of the top 25 pharmaceutical companies globally.
ii. Supported 60+ customers with integrated drug discovery programs during FY 2024 and the six months ended September 30, 2024.

Product Portfolio:
i. 170+ innovator pharmaceutical products in the CDMO pipeline.
ii. Supported the manufacturing of 28 commercial drugs through 38 supplied products as of September 30, 2024.

Value Proposition:
i. Multiple Entry Points: Their platform enables engagement with customers at different stages, from drug discovery to commercialization.
ii. Differentiated Model: Combines high-tech research near innovation hubs with scalable, cost-efficient manufacturing in India.
iii. Global Market Presence: Extensive operations in regulated markets, including US, UK, Europe, and Japan.

This integrated model positions them as a preferred partner for pharmaceutical innovation and drug development.

Objects of the Sai Life Sciences Limited IPO:

The company propose to utilise the Net Proceeds towards funding the following objects: i. Repayment/prepayment in full or part, of all or certain outstanding borrowings availed by the Company and ii. General corporate purposes. Total number of share issue: - i. Fresh issue is 17,304,189 shares, ii. Offer for sale is 38,116,934 shares.

Sai Life Sciences Limited IPO Details:

Open Date: Dec 11 2024
Close Date: Dec 13 2024
Total Shares: 55,421,123
Face Value: ₹ 1 Per Equity Share
Issue Size: 3,042.62 Cr.
Lot Size: 27 Shares
Issue Price: ₹ 522 - 549 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 18 2024

Promoters And Management:

Kanumuri Ranga Raju, Chairman and Whole-time Director of the Board, holds a Bachelor's degree in Pharmacy from the University of Mysore and both Bachelor's and Master's degrees in Science in Pharmacy from the Massachusetts College of Pharmacy, Boston. With over 25 years of experience in the pharmaceutical industry, he was previously a Director at Chemrich Fine Chemicals Private Limited and has been associated with the Company since January 25, 1999. Krishnam Raju Kanumuri, Managing Director and Chief Executive Officer of the Board, holds an MBA from the University of Kansas and attended the 1995 summer school in Financial Markets at the London School of Economics. With over 13 years of experience in business management, he was previously a Director at Laxmi Acqua Culture Private Limited and has been associated with the Company since May 1, 2004. Mitesh Daga, a Non-Executive Director (Nominee of TPG) on the Board, holds a Bachelor’s degree in Chemical Engineering from IIT Delhi and is a CFA charter holder. He is a partner at TPG Capital Asia and has over 17 years of experience in private equity. Previously, he served as Assistant Director at Advent India PE Advisors Pvt. Ltd., Associate at Zephyr Peacock Management India Pvt. Ltd., and Manager at CapitalOne Services (India) Pvt. Ltd.

Financials of Sai Life Sciences Limited IPO:

Metrics FY2022 (₹ Cr) FY2023 (₹ Cr) FY2024 (₹ Cr)
Total Revenue from Operations 869 1,217 1,465
EBITDA 131 182 300
Profit After Tax (PAT) 6.2 9.9 82
EBITDA Margin (%) 15.07 14.97 20.48
Profit After Tax Margin (%) 0.72 0.82 5.65
Return on Capital Employed (ROCE) (%) 3.21 5.13 10.26
Return on Equity (ROE) (%) 0.71 1.12 8.49
Net Debt/Equity 0.84 0.8 0.75
Net Debt/EBITDA 5.61 3.9 2.43

Comparison With Peers:

 
Parameters (cr) Sai Life Sciences Divi's Laboratories Suven Pharmaceuticals Syngene International
Revenue 1,465 7,815 1,051 3,489
3Y Revenue CAGR Growth 29% -6.40% -10% 15.75%
EBITDA (₹ Cr) 300 2,210 406 1,017
EBITDA Margin (%) 20.48% 28.28% 38.63% 29.15%
Profit After Tax (₹ Cr) 82.8 1,600.00 300 510
3Y PAT CAGR Growth 263.00% -26.00% -18% 15.65%
Profit After Tax Margin (%) 5.65% 20.47% 28.54% 14.62%
ROCE % 10.26 16.5 18.8 14.7
ROE% 8.49 12.2 14.1 13.2
Mcap 11418 1,63,198 33189 37000
P/E 137x 88x 137x 80x
3 year Stock Return NA 10.67% 36.16% 15.14%
 

Recommendation on Sai Life Sciences Limited IPO:

Registrar of Sai Life Sciences Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Sai Life Sciences Limited Plot No. DS-7, IKP Knowledge Park Turkapally Village, Shameerpet Mandal, Malkajgiri District, Hyderabad-500078 Phone: +9140 6815 6000 Email: investors@sailife.com Website: https://www.sailife.com/

Discussion on Sai Life Sciences Limited IPO:

1 Comment

    Extremely high priced.Financial parameters don’t look good either.Avoiding.

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