Sai Parenteral’s IPO: Key Things Every Investor Should Know Before Applying
- 25th March 2026
- 04:00 PM
- 4 min read
The much awaited Sai Parenteral’s IPO opens on Tuesday, March 24, 2026 and closes on Friday, March 27, 2026. The allotment of shares will take place on March 30, 2026. Backed by Nikhil Kamath, Co-Founder, Zerodha and Mohandas Pai, Former CFO, Infosys, , Sai Parenteral’s Limited is a Hyderabad-based specialty pharmaceutical company with over three decades of manufacturing heritage.
About Sai Parenteral
Sai Parenteral’s Limited is a specialty pharma company making a clear shift from domestic generics toward regulated-market CDMO and exports. The recent acquisition of Noumed Pharmaceuticals (Australia) — with 451 TGA-registered dossiers — gives SPL instant access to regulated markets that typically take years to build. Five manufacturing facilities, WHO-GMP and TGA-certified, back the operational story.
Founded in 1988, SPL manufactures injectables, tablets, capsules, and liquid orals across domestic and international markets. CDMO revenues have grown from 5.5% of sales in FY23 to 28% in 1HFY26.
Key Details of Sai Parenteral IPO
| Parameter | Details |
| Price Band | ₹372 – ₹392 |
| Issue Size | ₹409 Cr |
| Fresh Issue | ₹285 Cr |
| Face Value | ₹5 |
| Lot Size | 38 shares |
| Post-Issue Market Cap | ₹1,732 Cr |
| Min. Investment | ₹14,896 |
Important Dates
| Event | Date |
| Opens | 24th March 2026 |
| Closes | 27th March 2026 |
| Listing (Expected) | ~4th April 2026 |
Key Highlights
1. Diversified Business Model SPL manufactures and sells Branded Generic Formulations to government agencies, hospitals, pharma companies, and stockists in India. Exports — started in FY23 — now span Australia, New Zealand, Southeast Asia, the Middle East, and Africa. The CDMO business covers product development, dossier compilation, regulatory filings, and commercial manufacturing. SPL currently holds 55 in-house developed dossiers, with 45 approved by FDA Philippines, and plans to file 60 new dossiers across regulated markets by FY28.
- Accredited Manufacturing Infrastructure SPL operates 5 manufacturing facilities — 4 in Hyderabad and 1 in Ongole — with a combined installed capacity of 1,160 million units per annum (single shift). Facilities are strategically located near JNPT and Visakhapatnam ports, enabling efficient exports. A new R&D centre at Unit IV, Telangana is planned using IPO proceeds.
- Noumed Acquisition — A Strategic Asset In Oct’25, SPL acquired a 74.6% controlling stake in Noumed Pharmaceuticals (Australia) along with an AUD 4 Mn equity infusion. Noumed holds 451 TGA-registered dossiers across Australia and New Zealand — immediately strengthening SPL’s CDMO pipeline, particularly in OTC. Noumed’s Adelaide manufacturing facility is expected to be operational by Q4CY26.
- Valuation & Recommendation At the upper price band of ₹392, the issue is valued at 88.2x P/E and 46.3x EV/EBITDA on FY25 proforma basis — at a premium to peers. Given Noumed’s 451 dossiers and the significant growth opportunity they represent, we recommend SUBSCRIBE at cut-off price for a long-term investment horizon.
Risk Factors
1. Regulatory Risk SPL must comply with multiple regulatory frameworks across India and its export markets — including TGA Australia, WHO-GMP, and GMP standards. Manufacturing facilities are subject to periodic inspections and audits by both regulators and customers. Any non-compliance could disrupt operations or market access.
- Customer Concentration Top 5 clients in the Branded Generic Formulations business contributed 52.7% of revenue in 1HFY26. While CDMO concentration is lower, dependence on a handful of clients across both segments remains a risk to revenue stability.
- Supplier Concentration Key raw materials — APIs, excipients, and intermediates — are procured without long-term supply agreements. Top 5 suppliers accounted for ~56.7% of total raw material requirements in 1HFY26, with the single largest supplier contributing 15.2%. Disruptions here could impact production continuity.
- High Cash Conversion Cycle SPL’s cash conversion cycle stood at ~311 days (FY25 standalone) and ~194 days (FY25 proforma), indicating significant working capital pressure. The company reported negative operating cash flows in FY23, FY24, and 1HFY26 — driven by rising trade receivables and inventory build-up. This warrants close monitoring as revenues scale.
How to Apply?
You can apply via UPI or ASBA through your broker, bank, or online trading account.
👉 Apply Now on PLIndia.com
