Reportedly the wait of investors is about to end. Sai Life Sciences IPO is going to open on 11 December. It can be bid till 13 December. The price band of this TMG-backed Rs 3042 crore IPO has been fixed between Rs 522 and Rs 549 per share. Its gray market premium (GMP) was Rs 21 on Monday. In this way, it can be listed at Rs 571 with a 4.01 percent premium. Earlier it was available at a gray market premium of Rs 31. In this way, GMP has come down by Rs 10. In IPO, GMP i.e. gray market premium is the difference between the formal announcement of the price of the share and the price traded in the informal market.
Meanwhile if the issue price of the IPO is Rs 100 and GMP is Rs 300, then the price of the share in the gray market will be Rs 400. Understand it in other terms that if the stock is selling for Rs 400 in the grey market before the IPO, then the GMP is Rs 300. Similarly, if the stock is selling for Rs 40 in the grey market, then the GMP is Rs 60. The grey market is the informal market where IPOs are bought or sold before they are listed on the stock market.
Moreover Sai Life Sciences is a giant company in the pharma sector. This company develops and manufactures small molecule new chemical entities. In simple language, it cooperates in research and development for the pharma sector i.e. drug manufacturing companies. It provides end to end services for them from production to value chain. For the six-month period ending september 2024, Sai Life Sciences reported a total income of Rs 693.35 crore, up from Rs 656.8 crore in the previous year. The company earned a net profit of Rs 28.01 crore for the six months, while during the same period last year, there was a loss of Rs 12.92 crore. Under the IPO, which is open for bidding till december 13, 3 crore 81 lakh shares are to be sold through offer for sale. 50 percent of the shares will be available for qualified institutional investors and 15 percent for non-qualified institutional investors. 35 percent of the shares are reserved for retail investors.
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