IPO Alert: Sai Parenterals Files DRHP with SEBI to Raise Funds

Sai Parenterals Limited has filed draft documents with the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO), as per the news reports. The public issue will include a fresh issue of equity shares aggregating up to ₹285 crore, along with an offer for sale of up to 35 lakh shares by existing investors. The shares will be listed on both the NSE and BSE.

Shareholders Offloading Stake

The offer for sale will see participation from Vikasa India EIF I Fund, Tilokchand Punamchand Ostwal, Devendra Chawla, Bhanwar Lal Chandak, Sreelekha Ganta, Padma Guntupalli, Vijay Gondi, Ideas and Journeys Pvt Ltd, Bhautik Mukund Shah and Nilesh Pravinchandra Doshi.

Issue Structure and Management

As per the DRHP, up to 50% of the issue will be reserved for Qualified Institutional Buyers (QIBs), at least 15% for Non-Institutional Investors (NIIs), and a minimum of 35% for retail investors. Arihant Capital Markets will be the book running lead manager, while Bigshare Services has been appointed registrar. Each share will carry a face value of ₹5.

Utilisation of Proceeds

The company plans to use ₹110.7 crore for expanding and upgrading manufacturing facilities, and ₹18 crore for establishing a new research and development centre. Around ₹20 crore will be directed towards debt repayment, ₹33 crore for working capital, and ₹36 crore will be invested in its Singapore subsidiary to support the proposed acquisition of Noumed Pharmaceuticals Pty Ltd in Australia. 

The balance will be applied to general corporate purposes.

Company Background

Founded in 2013, Sai Parenteral's is engaged in branded generic formulations and contract development and manufacturing (CDMO). Its portfolio spans cardiovascular, neuropsychiatry, anti-diabetic, respiratory, gastroenterology, dermatology, vitamins, antibiotics, and analgesics. The company operates five manufacturing facilities in India, four of which are in Hyderabad, and exports to markets in Australia, New Zealand, Southeast Asia, the Middle East and Africa.

Sai Parenterals Financials

For FY25, revenue stood at ₹163.1 crore compared to ₹153.7 crore in FY24. EBITDA rose to ₹39.4 crore from ₹31.7 crore, and profit after tax increased to ₹14.45 crore against ₹8.4 crore in FY24.

Read More: LG Electronics India IPO Fully Subscribed on Day 1, Issue Closes on October 9!

Conclusion

Sai Parenteral’s IPO combines a fresh issue and offer for sale, with proceeds planned for expansion, research, acquisitions, and working capital requirements.

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