Sai Parenteral's IPO Sees 2% Subscription on Day 1

Sai Parenteral's IPO Receives Modest Subscription on First Day

On March 24, the initial public offer (IPO) of Sai Parenteral, a diversified pharmaceutical formulation company, received a modest response from investors. As per exchange data, the IPO received bids for 1,41,664 shares, against the total offer of 75,22,486 shares.

The subscription numbers indicate a lackluster response from investors, with the Retail Individual Investors (RIIs) category receiving a 1% subscription and the non-institutional investors quota subscribed at 5%. This is a contrast to the strong interest shown by anchor investors, who had bid for 31,28,485 equity shares at the upper price band of Rs 392 per share.

Sai Parenteral had garnered Rs 122 crore from anchor investors on March 24, with the company allotting 31,28,485 equity shares to the funds at the IPO's upper price band. The anchor investors include Morgan Stanley Asia (Singapore) Pte Ltd, Kotak Lifesciences Fund, Quant Mutual Fund, Kotak Mahindra Life Insurance Company, and India Emerging Giants Funds Ltd.

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The IPO, which will open for subscription on March 24 and conclude on March 27, comprises a fresh issue of up to Rs 285 crore and an offer-for-sale of up to nearly 32 lakh equity shares. The price band has been fixed at Rs 372-392 per share. The proceeds from the IPO will be used to support the company's expansion, particularly in strengthening its global formulations business and expanding its Contract Development and manufacturing organisation capabilities.