Sai Life Sciences Limited IPO
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:
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:
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% |
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Discussion on Sai Life Sciences Limited IPO:
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Extremely high priced.Financial parameters don’t look good either.Avoiding.