TPG-backed Sai Life Sciences files DRHP for IPO with SEBI

Sai Life Sciences Ltd has filed its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO).

Sai Life Sciences offers end-to-end services to biotechnology and pharmaceutical businesses worldwide, spanning the whole drug research, development, and manufacturing value chain for small molecule new chemical entities (NCE).

Through initial public offerings, the firm intends to raise money by issuing equity shares with a face value of one rupee apiece. Up to ₹800 crores worth of newly issued equity shares are included in the offer, along with up to 61,573,120 worth of equity shares that shareholders plan to offload via offer for sale component.

As per the DRHP, the selling shareholders are Sai Quest Syn Private Ltd, TPG Asia VII SF Pte Ltd, HBM Private Equity India, Bharathi Srivari, Anita Rudraraju Nandyala, Raju Penmasta, Dr. Dirk Walter Sartor, Jagdish Viswanath Dore, Rajagopal Srirama Tatta, and K Pandu Ranga Raju.

According to the DRHP, TPG Asia VII SF Pte Ltd owns a 39.69% stakein the company.

Sai Life Sciences plans to use the net proceeds from the new offering to pay down all or some of the existing loans the firm has taken out, up to ₹600 crores, as well as for general corporate objectives.

According to the F&S Report, in terms of both revenue and EBITDA CAGR from Financial Year 2022 to Financial Year 2024, the business is the fastest-growing Indian clinical research, development and manufacturing organisation (CRDMO) among its listed Indian peers.

The company's listed peers are Divi's Laboratories Ltd (with a P/E of 76.78), Suven Pharmaceuticals Ltd (with a P/E of 68.78), and Syngene International Ltd (with a P/E of 57.68).

The issue's book running lead managers are Morgan Stanley India Company Private Ltd, Jefferies India Private Ltd, Kotak Mahindra Capital Company Ltd, and IIFL Securities Ltd.

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