Sai Life Sciences IPO Listing: GMP indicates a debut above ₹600 for the stock

Shares of Sai Life Sciences, the contract research, development and manufacturing organisation (CRDMO) will mak e their stock market debut today, December 18.

The company's ₹3,043 crore IPO saw subscription of 10.27 times during the three days of bidding between December 11 to December 13.

As per reports, the Grey Market Premium (GMP) for the stock is currently at ₹58, down from ₹70 earlier. This indicates a potential listing price of ₹607 per share, which is a premium of over 10% to its IPO price of ₹549.

It must be noted that GMP figures are just speculative and are no indicator of the actual listing price of the stock.

Sai Life had priced the IPO between ₹527 to ₹549 per share.

Institutional investors led the subscription figures in the Sai Life Sciences IPO. The portion reserved for them saw subscription of 31 times. Institutional investors bid for 33 crore shares, in comparison to the 1.06 crore shares reserved for them.

The portion reserved for Non-Institutional Investors was subscribed 4.92 times.

However, the retail investor portion just managed to see full subscription during the final day of bidding. The portion reserved for retail investors was subscribed 1.37 times the shares on offer.

The Sai Life Sciences IPO had a fresh issue of shares worth ₹950 crore and the rest being an Offer For Sale (OFS) component.

From the fresh issue proceeds, the company intends to utilise ₹720 crore for repayment or prepayment in part or full of certain outstanding borrowings. Remainder of the proceeds will be used for general corporate purposes.

Sai Life Sciences offers tailor-made services to biotech firms and global pharma companies. It has research centers and manufacturing facilities strategically located in India, the US and the UK.

The company currently serves over 280 clients, including 18 out of the top 25 global pharma companies.