Sai Parenterals Lists on BSE at 3% Premium to IPO Price
Sai Parenterals Lists on Indian Stock Market with Initial Gain
On Thursday, April 2, the shares of Sai Parenterals began trading on the Indian stock market with a relatively flat start. The company's listing price on the Bombay Stock Exchange (BSE) was ₹405, marking a 3.32% increase over the initial public offering (IPO) price of ₹392. In contrast, on the National Stock Exchange (NSE), the stock opened at ₹400, reflecting a 2.04% gain over the IPO price.
The listing performance of Sai Parenterals exceeded expectations, particularly considering the grey market premium (GMP) had signaled a potential listing at par with the offer price. However, the GMP today stood at ₹0, indicating that the stock could list at a premium of up to 3% over the IPO price.
IPO Details
| Category | Subscription Ratio | Details |
|---|---|---|
| Qualified Institutional Buyer (QIB) | 1.73 times | Fully subscribed |
| Non-Institutional Investor (NII) | 2.45 times | Fully subscribed |
| Retail Individual Investor | 12% bids | Undersubscribed |
Sai Parenterals' ₹409-crore IPO had seen a tepid response, with the overall subscription ratio standing at 1.08 times. The offer was open for bidding from March 24 to March 27 and consisted of a fresh issue of ₹285 crore and an offer for sale of ₹123.79 crore. The IPO price band was set at ₹372 to ₹392 per share, with investors able to apply for the offer in lots of 38 shares.
The company plans to utilize the proceeds from the fresh issue, allocating ₹111 crore for capacity expansion and upgradation of manufacturing facilities, ₹18 crore for the establishment of a new R&D centre, and ₹14.30 crore for debt repayment. The remaining portion will be used for general corporate purposes.
As per the IPO details, not more than 50% of the net offer was reserved for QIBs, while not more than 15% and 35% of the net offer was earmarked for NIIs and retail individual investors, respectively. Arihant Capital Markets Ltd. is the book-running lead manager, and Bigshare Services Pvt. Ltd. is the registrar of the issue.
Sai Parenterals is a diversified pharmaceutical formulations player with capabilities in research, development, and manufacturing. It operates in the branded generic formulations segment and also provides contract development and manufacturing organisation (CDMO) products and services for domestic and international markets.
Read also: SMR Jewels IPO Successfully Lists with Institutional Support
Investor Takeaway
Sai Parenterals listed at a 3% premium to its IPO price.
More in IPO
SpaceX Seeks Record $75 Billion IPO, Potentially Positioning Elon Musk as the World's First Trillionaire
SMR Jewels IPO Successfully Lists with Institutional Support
Zepto Nears $1 Billion Quarterly Net Order Value Milestone Before IPO
