Sai Parenterals Secures Rs 123 Crore Through Anchor Investment Ahead of Initial Public Offering

Sai Parenteral Raises Rs 122.63 Crore from Anchor Investors Ahead of IPO

On March 23, Sai Parenteral, a pharmaceutical formulations company, raised Rs 122.63 crore from five anchor investors ahead of its initial public offering (IPO). The Rs 409-crore IPO will open for subscription on March 24 and close on March 27 with a price band of Rs 372-392 per share.

The IPO consists of a fresh issuance of shares worth Rs 285 crore and an offer-for-sale of 31.57 lakh shares worth Rs 123.78 crore. Sai Parenteral has finalized the allocation of 31.28 lakh shares to anchor investors at the upper price band.

The anchor investors include Quant Mutual Fund, which received 9.18 lakh shares worth Rs 36 crore, and Kotak Mahindra Life Insurance Company, which received 7.65 lakh shares worth Rs 30 crore. Other anchor investors include Kotak Life Sciences Fund, Morgan Stanley Asia (Singapore), and India Emerging Giants Fund.

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Sai Parenteral plans to utilize the proceeds from the IPO as follows: Rs 110.7 crore for capacity expansion and upgradation of manufacturing facilities, Rs 18 crore for the establishment of a new R&D centre, and Rs 33 crore for working capital requirements. Additionally, Rs 50 crore will be used for repayment of debt, and the remainder will be used for general corporate purposes.

Sai Parenteral, which plans to make its market debut on April 2, provides branded generic formulations and CDMO (contract development and manufacturing organisation) products and services across various therapeutic areas. The merchant banker managing the IPO is Arihant Capital Markets.