Sai Parenteral IPO opens today: price band, GMP flat, key dates and full details investors must know

Indian pharmaceutical company Sai Parenteral’s IPO worth over Rs 408 crore is all set to open for bidding today. Of the total float, Rs 285 crore will be raised via the issuance of fresh equity shares of Rs 5 each, while the remaining Rs 123 crore will be raised through the offer for sale (OFS) route.

The company has fixed the share price band at Rs 372 to Rs 392. However, the company’s shares have been trading flat in the unlisted markets, based on the upper price, indicating a listing price of Rs 392.

Here are some key details about the IPO:

#1 Sai Parenteral IPO: Offer Size and BRLMs

The IPO is an issue worth Rs 408.79 crore, of which the company plans to issue 73 lakh fresh equity shares of Rs 5 each, aggregating to Rs 285 crore. The promoter group/investors will offload 32 lakh shares to raise capital amounting to Rs 123.79 crore via offer for sale.

The IPO is being handled by Arihant Capital Markets, while Bigshare Services Private Limited is the registrar to the issue.

#2 Sai Parenteral IPO: Subscription timeline

The IPO will open for bidding on Tuesday, March 24, and close on Friday, March 27. Tentatively, the share allotment is expected to be completed by March 30. Eligible shareholders are likely to receive the shares in their demat accounts by April 1, and the refund process is also expected to be completed by the same date.

Sai Parenteral is expected to get listed on stock exchanges by April 2.

#3 Sai Parenteral IPO: Lot Size

Retail applicants will need to bid for a minimum of one lot comprising 38 shares, amounting to Rs 14,896 (based on the upper price). For small NII, the lot size stands at 14 lots of 532 shares, aggregating to Rs 2,08,544, and for a big NII, it is 68 lots of 2,584 shares, totalling Rs 10,12,928.

#4 Sai Parenteral IPO: GMP flat

In the unlisted markets, the pharma company’s shares have been trading flat, at zero premium, indicating a listing price of Rs 392. However, it is important to note that the grey market premium is not an official metric to determine the listing price and may vary based on market conditions.

#5 Sai Parenteral IPO: Utilisation of net proceeds

As per the company’s RHP, of the total Rs 408 crore raised via the issuance of fresh equity shares, the firm will deploy Rs 285 crore for funding its capacity expansion, establishing new R&D centres, meeting its working capital requirements, repaying its borrowings, and other corporate purposes.

The remaining funds will be deployed to meet other offer-related expenses.