Sai Parenterals IPO listing: The shares of Sai Parenterals were off to a flattish start in the Indian stock market on Thursday, April 2, as they listed at a premium of up to 3% over the initial public offering (IPO) price.
Sai Parenterals share price listed at ₹405 on the BSE, up 3.32% as against the IPO price of ₹392. Meanwhile, on NSE, Sai Parenterals stock opened 2.04% higher at ₹400.
The listing was better than expectations as signalled by the grey market premium (GMP). Sai Parenterals IPO GMP today was ₹0, suggesting that the stock could list at par with the offer price.
Sai Parenterals IPO details
Sai Parenterals’ IPO had seen a tepid response for its initial share sale, as it garnered 1.08 times subscription.
The qualified institutional buyer (QIB) category was subscribed 1.73 times, the non-institutional investor (NII) quota was booked 2.45 times, and the retail investor portion remained undersubscribed at 12% bids.
The ₹409-crore offer by the pharmaceutical company was open for bidding from March 24 to March 27. The mainboard IPO consisted of a fresh issue of ₹285 crore and an offer for sale of ₹123.79 crore.
Sai Parenterals IPO price band was set at ₹372 to ₹392 per share. Investors could apply for the offer in lots of 38 shares.
The company plans to utilise the proceeds from the fresh issue, with ₹111 crore earmarked 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.
Not more than 50% of the net offer was earmarked for QIBs, while not more than 15% and 35% of the net offer was reserved 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.
The company 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.
