Sai Parenteral's IPO Updates: Compliance, Subscription Status, and Final Day Considerations

Sai Parenteral's IPO Update

Key Figures:

• ₹372-₹392: Price band for the IPO
• ₹409 crore: Total amount raised through the IPO
• 0.73 crore: Number of fresh shares issued
• 0.32 crore: Number of shares offered for sale (OFS)
• ₹111 crore: Amount earmarked for capacity expansion and manufacturing facility upgradation
• ₹18 crore: Amount earmarked for establishing a new R&D centre
• ₹14.30 crore: Amount earmarked for debt repayment
• 10.6x: Price-to-sales valuation of Sai Parenteral's
• 72.19x: Pre-IPO price-to-earnings ratio of Sai Parenteral's
• 9.28%: Return on capital employed (RoCE) of Sai Parenteral's

IPO Details:

Read also: SMR Jewels IPO Successfully Lists with Institutional Support

The initial public offering (IPO) of Sai Parenteral's, a diversified pharmaceutical formulations company, is set to close on March 26. The IPO, which opened for subscription on March 24, has received a weak response with a subscription status of 0.42 times. The issue has been subscribed 0.05 times in the retail portion, 1.05 times in the non-institutional investor (NII) category, and 0.60 times in the qualified institutional buyer (QIB) portion.

Grey Market Premium:

The grey market premium (GMP) of Sai Parenteral's stood at ₹0 on March 26, indicating that the stock is likely to debut at the upper end of the IPO price band of ₹392.

IPO Subscription Status:

Read also: Zepto Nears $1 Billion Quarterly Net Order Value Milestone Before IPO

The subscription for Day 3 will start at 10 am. The company plans to use the proceeds from the fresh issue for multiple purposes, including capacity expansion and manufacturing facility upgradation, establishing a new R&D centre, and debt repayment.

Brokerage Views:

Anand Rathi has assigned a "Subscribe-Long Term" rating to the issue, citing a fair valuation in relation to competitors and a consistent track record of financial metrics. In contrast, Swastika Investmart has raised concerns over the company's valuation, citing a pre-IPO P/E of 72.19x and a RoCE of 9.28%, which appears stretched compared to peers.

IPO Listing Date:

The tentative listing date for Sai Parenteral's has been set as April 2.