🚫 Avoid
Listed
Pharmaceuticals & Biotechnology
Sai Parenteral's Limited IPO
₹409 Cr · Fresh Issue & OFS · Pharmaceuticals & Biotechnology
Price Band
₹372 – ₹392
GMP (Grey Market)
—
No GMP data yet
Issue Size
₹409 Cr
Fresh Issue & OFS
Market Cap
₹1781.83 Cr
At upper band
P/E Ratio
229.6x
P/S: 10.9x
Listing Date
02 Apr 2026
BSE & NSE
IPO Timeline
✓
Opens
24 Mar 2026
✓
Closes
27 Mar 2026
✓
Allotment
30 Mar 2026
✓
Refund
31 Mar 2026
✓
Listing
02 Apr 2026
IPO India Hub: Strong Avoid
Conviction
2/10
The company trades at 5.74× sector midpoint P/E (229.6x absolute), far exceeding the 2.0× threshold for Avoid. Revenue has collapsed 46% over two years (₹155.2 Cr to ₹89.4 Cr), and despite strong EBITDA margins, the IPO is severely overvalued with weak subscription (1.08x) signaling investor skepticism.
Listing Performance
Issue Price
₹392
Allotment price
Listing Price
₹405
+3.32% on listing day
Current Price (CMP)
₹523.25
+33.5% vs issue
Listed On
02 Apr 2026
BSE & NSE
Our Analysis — Key Points
✓ Strength
Strong EBITDA margin and ROCE
The company maintains a 24.18% EBITDA margin and 28.92% ROCE, indicating efficient operations and capital deployment in its core pharma business. These metrics suggest underlying operational competence in manufacturing and formulation.
✓ Strength
Capacity expansion and R&D investment
Use of proceeds includes ₹110.80 Cr for capacity expansion and ₹18.02 Cr for a new R&D centre, signaling management intent to scale production and develop proprietary formulations. This addresses future growth constraints.
⚠ Risk
Severe revenue contraction and declining profitability
Revenue fell 46% from ₹155.2 Cr (FY-2) to ₹89.4 Cr (FY0), with a negative 2-year CAGR of -24.1%. Net profit also declined 4% CAGR over the same period, indicating the company is losing market share or facing demand headwinds in its core segments.
⚠ Risk
Extreme valuation disconnect from fundamentals
At 229.6x P/E and 5.74× sector midpoint, the company is priced at a massive premium with no justification. The 4.8% NPM does not support premium valuation, and the weak 1.08x subscription suggests institutional investors have already rejected this pricing.
₹ Valuation
Valuation far exceeds sector norms
The P/E of 229.6x is 5.74× the Healthcare/Diagnostics sector midpoint of 40x (range 30–50x), placing it in the extreme outlier zone. Even the P/S of 10.9x is elevated for a company with declining revenue and 4.8% margins, indicating the IPO is priced for growth the company is not delivering.
👁 Watch
Post-listing revenue trajectory and market share
Monitor Q1 FY27 revenue closely to confirm whether the FY0 collapse was temporary or structural. Any further revenue decline or margin compression would validate that the IPO pricing was unjustified.
Top Analyst Reviews
| Analyst / Firm | Rating | Known For | Review |
|---|---|---|---|
| IPO India Hub Our independent review |
Original analysis based on DRHP & public financials | This page | |
| Dilip Davda Chittorgarh.com |
India's most followed independent IPO analyst | Search on Chittorgarh → | |
| Capital Market (CM Rating) CapitalMarket.com |
Widely-cited "New Issue Monitor" reports | Search on CapitalMarket → | |
| ICICI Securities ICICIdirect Research |
SEBI-registered broker research desk | Visit ICICIdirect → | |
| IPO Guru Analyst Leaderboard ipoguru.in |
Ranks 49 analysts by real IPO outcome accuracy | View leaderboard → |
External links go to each platform's IPO section — search for "Sai Parenteral's Limited" to find the specific review. IPO India Hub does not represent the accuracy of third-party ratings.
Company Snapshot
Revenue
₹163.11 Cr
Net Profit
₹7.76 Cr
Industry
Pharmaceuticals & Biotechnology
Issue Type
Fresh Issue & OFS
Promoters
ANIL KUMAR KARUSALA, VIJITHA GORREPATI AND KARUSALA ARUNA
Lead Managers
Arihant Capital Markets
Quick Actions
Frequently Asked Questions
Avoid. The company trades at 5.74× sector midpoint P/E (229.6x absolute), far exceeding the 2.0× threshold for Avoid. Revenue has collapsed 46% over two years (₹155.2 Cr to ₹89.4 Cr), and despite strong EBITDA margins, the IPO is severely overvalued with weak subscription (1.08x) signaling investor skepticism.
GMP data is not yet available for this IPO. Check our GMP Live page for the latest updates closer to the listing date.
Lot size details will be updated when the DRHP is filed. The price band is ₹372 – ₹392.
The IPO opens on 24 Mar 2026. It closes on 27 Mar 2026. Allotment is expected on 30 Mar 2026. Refunds initiate on 31 Mar 2026. Listing on BSE and NSE is on 02 Apr 2026.
The lead managers for the IPO are Arihant Capital Markets. Check the SEBI filing for the registrar details.
The IPO listed on 02 Apr 2026 at ₹405 against an issue price of ₹392 (+3.32% on listing day). The current market price (CMP) is approximately ₹523.25 (+33.5% vs issue).
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 27 Mar 2026. The company trades at 5.74× sector midpoint P/E (229.6x absolute), far exceeding the 2.0× threshold for Avoid. Revenue has collapsed 46% over two years (₹155.2 Cr to ₹89.4 Cr), and despite strong EBITDA margins, the IPO is severely overvalued with weak subscription (1.08x) signaling investor skepticism.
Our analysis recommends <strong>Avoid</strong>. We suggest skipping this IPO before the issue closes on 27 Mar 2026. The IPO is priced at a P/E of 229.6x. Market cap at issue price is ₹1781.83 Cr. As with all IPOs, please read the DRHP and assess your own risk tolerance before investing.
You can apply via UPI through your broker's trading app (Zerodha, Upstox, Fyers, etc.) or via ASBA through your net banking portal. The issue closes on 27 Mar 2026, so apply before that date. Step 1: Log in to your broker or bank app. Step 2: Go to IPO section and search for 'Sai Parenteral's Limited'. Step 3: Enter the number of lots and UPI ID. Step 4: Accept the mandate on your UPI app.
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