Sai Parenteral IPO 4% Subscribed on Day 1; QIBs Absent
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- Sai Parenteral IPO was 4% subscribed on day 1, with the retail quota at 3%, non-institutional investors at 15%, and qualified institutional buyers completely absent from the book
- Sai Parenteral is raising Rs 409 crore total — Rs 285 crore via fresh equity and Rs 123.79 crore via offer for sale — at a price band of Rs 372–392 per share, with a minimum lot of 38 shares (Rs 14,896)
- Sai Parenteral had already mopped up Rs 122.63 crore from five anchor investors on Monday, ahead of the issue opening to the broader market
- Sai Parenteral commanded zero grey market premium ahead of listing, which the source notes implies a flat listing on close
- Sai Parenteral's revenue surged from Rs 97 crore (FY23) to Rs 495 crore (FY25), with PAT climbing from Rs 4 crore to Rs 20 crore; H1FY26 revenue stood at Rs 303 crore with PAT of just Rs 2 crore
- SBI Securities recommended a long-term 'Subscribe', but flagged that the issue is priced at a premium to peers — 88.2X FY25 P/E and 46.3X EV/EBITDA on post-issue capital
- The IPO closes Friday, March 27, with proceeds earmarked for capacity expansion (Rs 110.8 cr), a new R&D centre (Rs 18 cr), debt repayment (Rs 14 cr), and working capital (Rs 33 cr)
Why it matters: The QIB absence on day 1 is a clear warning signal for a Rs 409 crore pharma issue — institutional money normally anchors subscription momentum. With zero grey market premium and SBI Securities itself acknowledging the 88.2X P/E is at a premium to peers, retail bidders risk a flat-to-disappointing debut and are paying peak multiples for a company whose H1FY26 PAT was a mere Rs 2 crore on Rs 303 crore in revenue.
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