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Informist, Wednesday, Oct. 1, 2025

 

NEW DELHI - Sai Parenteral's Ltd. has filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering comprising fresh issue of shares up to INR 2.85 billion and an offer for sale of up to 3.5 million equity shares. The shares have a face value of INR 5 per share.

 

In the offer-for-sale portion of the IPO, investor shareholder Vikasa India EIF I Fund will be selling the largest quantum, 430,000 shares. Vikasa India EIF I Fund currently holds 430,000 shares in the company with a weighted average cost of acquisition of INR 70 per share. Five more investor shareholders - Tilokchand Ostwal, Devendra Chawla, Bhanwar Chandak, Sreelekha Gupta, and Padma Guntupalli will be offloading up to 200,000-222,222 shares each, 100% of their respective shareholding. These five investor shareholders had acquired the shares at a weighted average cost of INR 35-INR 45 each. There are 23 other investor shareholders who will be selling shares in the IPO.

 

 

The Telangana-based company operates in the pharmaceutical industry with operations in branded generic formulations and contract development and manufacturing organisation products and services, for domestic and international markets. The branded generic pharmaceutical formulations contribute over 80% of the company's revenue.

 

For 2024-25 (Apr-Mar), the consolidated revenue from operations was INR 1.63 billion, up 6.1% on year, and the net profit was INR 144 million, up 71%, data from the draft prospectus showed. The total borrowings of the company were INR 939 million, according to the data.

 

The company plans to use the net proceeds from the gross INR 2.85 billion being raised in the IPO through fresh issue of shares to expand capacities at its manufacturing units and for their upgradation, according to the draft prospectus. The proceeds may be also used for setting up a new research and development centre, repayment of outstanding borrowings, working capital requirements, investment in wholly owned subsidiary in Singapore with respect to proposed acquisition of Australian company Noumed Pharmaceuticals Pty Ltd., and for general corporate purposes, the company said in the draft prospectus.

 

There is one material civil litigation pending against the company. The offer is being made through a book-building process where not more than 50% of the net offer will be allocated to qualified institutional buyers. Not less than 15% of the offer will be allotted to non-institutional bidders and not more than 35% will be allotted to retail investors. Arihant Capital Markets Ltd. is the book-running lead manager for the issue and Bigshare Services Pvt. Ltd. is the registrar. (Rajesh Gajra)

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Edited by Akul Nishant Akhoury

 

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