Sai Parenteral's IPO Opens March 24: Price Band & Details

Introduction to Sai Parenteral's Public Offering

Hyderabad-based pharmaceutical firm Sai Parenteral's Ltd is set to launch its Initial Public Offering (IPO) on March 24, 2026. The company aims to raise approximately ₹408.79 crore through a combination of a fresh issue of shares and an offer for sale (OFS) from existing shareholders. The subscription window for the mainboard IPO will remain open for four days, concluding on March 27, 2026. This move is intended to fund the company's expansion plans, including enhancing its manufacturing capabilities and strengthening its global presence.

Successful Anchor Investor Round

A day before the public issue opens, Sai Parenteral's successfully raised ₹122.63 crore from a group of five anchor investors. The company allotted 31,28,485 equity shares at the upper price band of ₹392 per share. Key institutional investors participating in this round included Morgan Stanley Asia (Singapore) Pte Ltd, Kotak Lifesciences Fund, Quant Mutual Fund, Kotak Mahindra Life Insurance Company, and India Emerging Giants Funds Ltd. This strong interest from anchor investors often sets a positive tone for the public subscription period.

IPO Structure and Offer Details

The total IPO size of ₹408.79 crore is structured into two main components:

1. Fresh Issue: The company will issue new equity shares aggregating to ₹285 crore. The proceeds from this portion will be directly infused into the company for its growth initiatives.
2. Offer for Sale (OFS): Existing shareholders will offload up to 31,57,880 equity shares, aggregating to approximately ₹123.79 crore. The funds from the OFS will go to the selling shareholders and not the company.

The net offer is reserved for different investor categories, with 50% allocated for Qualified Institutional Buyers (QIBs), 35% for Retail Individual Investors (RIIs), and the remaining 15% for Non-Institutional Investors (NIIs).

Price Band and Investment Lots

Sai Parenteral's has fixed the price band for its IPO at ₹372 to ₹392 per equity share. The lot size for the application is 38 shares. Consequently, a retail investor would need to invest a minimum of ₹14,896 to apply for one lot at the upper end of the price band. The maximum investment for a retail investor is capped at 13 lots, or 494 shares, amounting to ₹1,93,648.

Utilization of IPO Proceeds

The net proceeds from the fresh issue, estimated at around ₹211.76 crore after deducting issue-related expenses, are earmarked for specific corporate objectives. The primary use of funds includes capacity expansion and upgrading existing manufacturing facilities to meet growing demand. A portion will be invested in a subsidiary for an acquisition in Australia, while other funds will support working capital needs, the establishment of a new R&D centre, and repayment of certain debts.

A Look at Company Financials

Sai Parenteral's has demonstrated consistent growth in its financial performance over the past three fiscal years. The company's total income grew from ₹97.03 crore in FY23 to ₹163.74 crore in FY25. During the same period, its Profit After Tax (PAT) increased significantly from ₹4.38 crore to ₹14.43 crore. For the six months ending September 30, 2025, the company reported a revenue of ₹89.43 crore and a net profit of ₹7.76 crore.

Valuation and Market Position

At the upper price band of ₹392, the company is valued at a Price-to-Earnings (P/E) ratio of 72.19 times based on its FY25 earnings per share (EPS) of ₹5.43. The post-issue market capitalization is estimated to be over ₹1,730 crore. The company operates in the pharmaceutical formulations sector, with a focus on both domestic and international markets, including contract development and manufacturing (CDMO) services.

Key IPO Timeline

Investors should note the following important dates related to the Sai Parenteral's IPO:

• Anchor Investor Bidding: March 23, 2026
• IPO Opening Date: March 24, 2026
• IPO Closing Date: March 27, 2026
• Allotment Finalization: March 30, 2026
• Listing Date: April 2, 2026

The shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Arihant Capital Markets is the sole book-running lead manager for the issue, while Bigshare Services Pvt Ltd is the registrar.