Sai Parenteral’s IPO: Check IPO Date, Lot Size, Price & Details

Business Overview:

Sai Parenteral’s Limited is a diversified pharmaceutical formulations company engaged in the research, development, and manufacturing of a wide range of pharmaceutical products. The company operates across two key segments: branded generic formulations and contract development and manufacturing organisation (CDMO) services, catering to both domestic and international markets.

The company has a broad product portfolio spanning multiple therapeutic areas, including cardiovascular, neuropsychiatry, anti-diabetic, respiratory, antibiotics, gastroenterology, vitamins and supplements, analgesics, and dermatology. Its offerings cover diverse dosage forms such as injectables, tablets, capsules, liquid orals, and ointments, enabling it to serve varied patient and client requirements.

The company caters to a diversified customer base comprising government institutions, pharmaceutical companies, hospitals, and distribution partners across India. The company expanded into international markets in FY23 following the acquisition of globally accredited facilities, and now exports to regulated and semi-regulated regions including Australia, New Zealand, Southeast Asia, the Middle East, and Africa.

It operates five manufacturing facilities across India, with multiple regulatory accreditations including WHO-GMP, TGA-Australia, and PIC/S, supporting its capabilities in high quality and compliant manufacturing.

IPO Synopsis:

Objective of the Issue:

• Capacity expansion and upgradation of manufacturing facilities - ₹ 110.8 crores
• Establishment of a new R&D Centre – ₹ 18.02 crores
• Repayment / prepayment of certain outstanding borrowings – ₹ 14.3 crores
• Working capital requirements – ₹ 33 crores
• Proposed acquisition of Noumed Pharmaceuticals Pty Limited (Australia) – ₹ 35.64 crores
• General corporate purposes

Strengths:

• Diversified Business Model and Product Portfolio:
  The company operates across two segments - Branded Generic Formulations (72%) and CDMO (28%) with a visible shift toward diversification as CDMO contribution has increased from 6% in FY23. Within formulations, revenue is well spread across injectables (25%), tablets (59%), and liquid orals (12%), reducing product concentration risk.

• Increasing Geographic Diversification:
  The company has significantly expanded its international presence, with exports rising from 2% in FY23 to 23% in H1 FY26, while domestic contribution stands at 76%. This shift reflects strategic efforts to diversify geographically, reduce dependence on the domestic market, and tap growth opportunities in regulated and semi-regulated regions.

• Strong Focus and Scale-Up in CDMO Segment:
  The company has rapidly scaled its CDMO operations since FY22, supported by acquisitions of internationally accredited facilities enabling entry into regulated markets. A robust pipeline of 55 in-house developed dossiers (45 approved) and access to 451 dossiers post Noumed acquisition strengthens long term growth, customer stickiness, and product development capabilities.

Risks:

• Supplier Concentration and Rising Raw Material Costs:
  The company has a concentrated supplier base, with the top 5 suppliers accounting for 56% of total procurement. Additionally, raw material costs have risen to 75% of revenue in H1 FY26, driven by APIs, intermediates, and excipients. This exposes the company to pricing volatility and supply chain disruptions.
• Geographic Concentration of Manufacturing Facilities:
  Out of five manufacturing facilities, four are located in Hyderabad (Telangana) and one in Andhra Pradesh. This concentration increases exposure to regional risks such as policy changes, economic disruptions, or unforeseen events, which could adversely impact operations, production continuity, and overall business performance.
• High Working Capital Intensity and Rising Receivables:
  The company faces increasing working capital requirements, with trade receivables rising from ₹61 crore to ₹151 crore over three years and inventory days at 68 days. Extended credit to government and institutional clients, along with capacity expansion, has led to elevated receivables and pressure on cash flows.

Financial Snapshot (Rs. In Crores):

IPO Allotment

Find out the allotment status for the Sai Parenteral's IPO by checking Bigshare Services Pvt.Ltd. application page.