Sai Parenterals shares debuted at a 2% premium over the issue price of Rs 392, gaining over 1% despite a weak market. Check IPO subscription, GMP, and company details.

Sai Parenterals lists at 2% premium to issue price; shares up over 1% in a falling market

Indian pharmaceutical company Sai Parenteral saw a positive debut amid the falling shares. It listed at Rs 44 per share, at a 2% premium to the issue price fixed at Rs 392 per share. The company’s IPO worth Rs 408 crore attracted moderate investor interest and received an overall subscription of 1.05 times, while the retail applicant segment was subscribed just 12%.

Sai Parenteral IPO: GMP details

As per market trackers, the company’s grey market premium was flat. The company had fixed the share price band at Rs 372 to Rs 392.

Sai Parenteral IPO: Subscription details

The IPO was subscribed 1.05 times, receiving bids for over 78.8 lakh equity shares against its offer of 75.22 lakh shares of Rs 5 each. The NII segment led the pack and was subscribed 2.36 times, while the QIB segment was subscribed 1.71 times.

The retail investor segment was heavily undersubscribed at just 12%, bidding for just 4.39 lakh shares against its offering of 37.86 lakh shares.

Sai Parenteral IPO: Issue details

The IPO was a book-built issue worth Rs 408.79 crore, of which 73 lakh fresh equity shares of Rs 5 each were issued to raise capital worth Rs 285 crore. The promoter group offloaded 32 lakh shares worth Rs 123.79 crore via the offer for sale route.

As per the company’s RHP, of the total fresh equity worth Rs 408 crore, the pharma company 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.

Sai Parenteral IPO: About the company

The Hyderabad-headquartered company is engaged in the business of pharmaceutical formulation. It operates in two key business verticals, which are branded generic formulations and Contract Development and Manufacturing (CDMO).

The company focuses heavily on injectable products, and its other products include tablets, capsules, ointments, etc.