Shares of Sai Life Sciences are likely to make a muted market debut on December 18 as indicated by grey market trends. Data from Chittorgarh website shows that the company shares will likely list at a premium of 11 percent over the issue price of Rs 549 apiece.
The shares could debut at Rs 611 apiece, estimates show. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.
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The Rs 3,043-crore public offer is a mix of fresh issuance of Rs 950 crore worth of shares and an offer-for-sale of 3.81 crore shares worth Rs 2,092.6 crore by existing shareholders, including promoters and investors.
Over three days, Qualified Institutional Buyers (QIBs) led the demand for the issue, as their portion was subscribed to 30.93 times the total shares on offer. The portion reserved for non-institutional investors was subscribed 4.92 times, while the retail investor portion was subscribed 1.37 times the total shares on offer for them.
"The company has a strong scientific and business development team positioned in key markets like the US, UK, Europe, and Japan. However, given the current market sentiment, the IPO listing is likely to remain flat. Analysts suggest the expected listing price appears unjustified due to the company's high valuation demands," Narendra Solanki of Anand Rathi Shares and Stock Brokers said.
Sai Life Sciences, which is backed by the global private equity major TPG Capital, has raised Rs 912.78 crore from marquee institutional investors via anchor book on December 10, a day before the issue opening.
HDFC Mutual Fund, Nippon Life India, Axis Mutual Fund, Kotak Mahindra AMC, Aditya Birla Sun Life AMC, DSP MF, Mirae Asset, SBI Life Insurance, UTI Mutual Fund, Whiteoak Capital, Bandhan Mutual Fund, Franklin, HSBC MF, Invesco, Max Life Insurance, Aditya Birla Sun Life Insurance, and Kotak Mahindra Life Insurance among domestic institutional investors also invested in the company.
Sai Life Sciences is one of the largest integrated CRDMOs among listed Indian peers (Divis Laboratories, Suven Pharmaceuticals, and Syngene International) in terms of revenue for FY24.
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