Sai Parenterals Files DRHP: ₹285 Crore Fresh Issue, OFS of 35 Lakh Shares

Mumbai, October 1, 2025 – Sai Parenterals Limited has submitted its Draft Red Herring Prospectus (DRHP) to SEBI for listing through a mainboard initial public offering. The IPO includes a fresh issue amounting to ₹285 crore and an Offer for Sale of up to 35 lakh equity shares by existing shareholders. The company plans to list its shares on both NSE and BSE. Arihant Capital Markets Limited is the Book Running Lead Manager, while Bigshare Services Private Limited will serve as the registrar.

Sai Parenterals IPO Snapshot

The issue includes a new issue and an OFS, with portions allocated to Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Investors, in accordance with SEBI ICDR guidelines. Each share has a face value of ₹5. The price band, opening date, and closing date will be announced in advance of the IPO opening.

Sai Parenterals IPO Use of Proceeds

The net proceeds from the fresh issue will be used primarily for strategic growth and operational initiatives, as outlined in the DRHP. The company intends to spend ₹110.80 crore on expanding its capacity and upgrading its manufacturing facility, and ₹18.02 crore on establishing a new R&D centre. Repayment or prepayment of borrowings will cover ₹20 crore, and ₹33 crore will be allocated towards working capital needs. Further, ₹36 crore is to be invested in its Singapore subsidiary to buy Noumed Pharmaceuticals Pty Ltd in Australia. The remainder of the proceeds will be applied to general corporate purposes as permissible under SEBI regulatory constraints.

Company Overview

Established in 2001, Sai Parenterals is a pharmaceutical manufacturing and marketing company specializing in formulations, parenterals, including large and small volume injectables, intravenous fluids, nutraceuticals, dietary supplements, and allied products. Sai Parenterals has several facilities in Telangana and Andhra Pradesh, with scheduled upgrades to meet EU-GMP and PIC/S standards for export to regulated countries. Sai Parenterals operates in two business segments: Branded Generics and Contract Development & Manufacturing (CDMO), catering to both domestic and international markets.

Sai Parenterals IPO Financial Highlights

On a consolidated restated basis, the company generated revenue from operations of ₹96.80 crore during FY23, ₹153.76 crore in FY24, and ₹163.11 crore in FY25. Profit after tax also increased to ₹14.45 crore during FY25 from ₹4.38 crore in FY23. The net worth grew to ₹95.78 crore during FY25, while total borrowings decreased to ₹93.95 crore, indicating the company’s improving financial health and operational efficiencies.

Sai Parenterals IPO Promoters

The founders of Sai Parenterals are Anil Kumar Karusala, Vijitha Gorrepati, and Karusala Aruna, who together determine the company’s operational and strategy-led development.

Sai Parenterals IPO Strategic Expansion

Sai Parenteral is augmenting its injectables and oral solids business, adding new manufacturing lines for lyophilised vials and cartridge-based injectables. The acquisition of Noumed Pharmaceuticals by its Singapore subsidiary is likely to boost the company’s foothold in Australia and New Zealand. At the same time, R&D investments will fuel the development of complex generics and high-end formulations, solidifying its dominance in both domestic and international markets.

Sai Parenterals IPO Key Risks

The firm remains significantly dependent on the injectables business for revenue, although efforts at diversification are underway. Compliance and regulatory issues in overseas markets may present risks, as may an elevated working capital intensity and historical cash flow pressures. Being exposed to government tender pricing in India and being reliant on third-party contractors for growth projects are factors in favor of caution for prospective investors.

REF: https://nsearchives.nseindia.com/corporate/Registration_01102025120523_DRHPSAI.pdf

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