TPG-backed Sai Life Sciences files draft papers with SEBI to raise funds via IPO

Kotak Mahindra Capital, IIFL Securities, Jefferies India Pvt, Morgan Stanley India Company are the lead managers to the issue.

TPG-backed Sai Life Sciences has filed draft red herring prospectus with Securities Exchange Board of India to raise funds via an initial public offering (IPO).

The IPO consists of a fresh issue of Rs 800 crore and an offer for sale of upto 61.57 million shares by its existing shareholders and promoters, showed the DRHP.

The OFS comprises of up to 6.45 million shares by Sai Quest Syn Pvt Ltd, 45.72 million shares by TPG Asia VII SF Pte, up to 6.86 million shares by HBM Pvt Equity India, among others.

Kotak Mahindra Capital, IIFL Securities, Jefferies India Pvt, Morgan Stanley India Company are the lead managers to the issue.

Rs 600-crore proceeds from the fresh issue will be used to repay debt. As of March 2024, the aggregate outstanding borrowings of our company on a consolidated basis was Rs 710.16 crore.

The firm is a contract research, development, and manufacturing organization (CRDMO) offering comprehensive drug discovery, development, and manufacturing services for small molecule NCEs to global pharmaceutical and biotech companies. It provides both discovery/contract research and CMC/contract development and manufacturing capabilities.

The firm's diverse portfolio includes commercial, late-stage, and early-stage CMC molecules and discovery programs. As of March 31, 2024, no customer contributed more than 9.55% of its revenue. It is among the few Indian CRDMOs with integrated discovery and development operations in the US, UK, and India, along with manufacturing capabilities in India.

For FY24, its revenue stood at Rs 1,465.18 crore as compared to Rs 1,217.14 crore a year ago. FY24 net profit was at Rs 82.81 crore versus Rs 9.99 crore in FY23.

The firm offers services through globally accredited manufacturing and R&D facilities, supported by a qualified team of 2,125 scientific staff, including 276 PhDs and 1,343 master's degree holders. Its manufacturing facilities have received approvals from the USFDA, PMDA, and CDSCO.