MUMBAI: Two companies—pharma firm Sai Life Sciences and small businesses focused non-banking credit player Northern Arc Capital--have filed the draft papers with the market watchdog Sebi for an initial share sale offers with a planned fund-raising of around Rs 7,000 crore.
While the Khopoli, Raigad, based Sai Life is planning to raise Rs 5,000 crore from the issue which will be a mix of fresh issue (Rs 800 crore) and offer for sale, the Chennai-based Northern Arc Capital has got the final Sebi approval for a Rs 2,000 crore issue which will comprise Rs 500 crore fresh issue and the rest in OFS.
Sai Life is a pure-play contract research, development and manufacturing organisation (CRDMO) and works with over 280 global pharma and biotech companies to help them accelerate discovery, development and commercialisation of their new new chemical entities for their molecule programmes.
Over the past 24 years, Sai Life has served a set of programmes, consistently delivering quality services and has facilities in India, England, the US and Japan.
The draft red herring prospectus filed with Sebi on Monday said the issue will consist of Rs 800 crore in fresh issue and the rest in offer for sale by promoters and existing external investors.
Though the filing did not say how much they are looking at raising through the OFS, sources in the know told TNIE that the offer will be at least Rs 4,200 crore. The OFs will comprise selling shares of Re 1 face value of up to 6.16 crore equity shares.
Sai Life proposes to utilise the proceeds from the fresh issue towards repayment/prepayment of Rs 600 crore of its outstanding debt and for general corporate purposes.
Meanwhile, Northern Arc Capital said it has received final Sebi observations (which means final approval for the share sale offer) for a Rs 500 crore fresh issue and an offer for sale. Though the company did not say how much it is planning to mop up through the OFS as the price discovery is not complete yet, sources told TNIC that the OFS portion will at least be Rs 1,500 crore.
Northern Arc is a financial services platform primarily catering to retail credit needs of the under-served households and businesses such as micro and small and medium enterprises financing as well as microfinance, consumer finance, vehicle finance, affordable housing and agricultural finance.
