The ₹409-crore initial public offering of Sai Parenterals Ltd was fully subscribed on the final day of bidding, led by strong institutional interest.
As of 4.12 pm, the issue was subscribed 1.04 times overall, with qualified institutional buyers (QIBs) subscribing 1.71 times and non-institutional investors (NIIs) 2.36 times. However, retail participation remained muted at just 0.11 times.
Ahead of the public issue, the company raised over ₹122 crore from anchor investors on Monday, indicating early confidence from institutional participants.I
Sai Parenterals’ IPO comprises a mix of fresh issue and offer-for-sale (OFS). The fresh issue is worth up to ₹285 crore, while the OFS includes up to 31.57 lakh equity shares being sold by existing shareholders, including Vikasa India EIF I Fund and several individual investors.
The price band for the IPO Investors could bid for a minimum lot size of 38 shares.
Use of proceeds
The company plans to utilise the net proceeds from the fresh issue primarily to fund its expansion plans. This includes strengthening its global formulations business and enhancing its Contract Development and Manufacturing Organisation (CDMO) capabilities. The focus will be on scaling both injectable products and oral solid dosage manufacturing.
Market sentiment around the IPO remains cautiously optimistic, largely due to strong institutional demand despite weak retail participation. The healthy subscription from QIBs and NIIs suggests confidence in the company’s growth prospects, particularly in the export-focused pharmaceutical segment. However, the low retail interest could temper listing gains.