The Securities and Exchange Board of India (Sebi) has granted its final approval for the initial public offerings (IPOs) of two companies: Sai Parenteral Limited and Hella Infra Market. This regulatory nod marks a significant milestone for both firms as they prepare to enter the public markets, reflecting continued investor interest in diverse sectors of the Indian economy.
Sai Parenteral's IPO Details and Fund Utilization
Based in Telangana, Sai Parenteral filed its draft papers with Sebi on September 30, 2025. The IPO comprises a fresh issue of approximately ₹285 crore along with an offer-for-sale (OFS) of up to 35,00,000 shares. The selling shareholders in the OFS include prominent investors such as Vikasa India EIF I Fund, Tilokchand Punamchand Ostwal, Devendra Chawla, Bhanwar Lal Chandak, Sreelekha Ganta, Padma Guntupalli, Vijay Gondi, Ideas and Journeys Private Limited, Bhautik Mukund Shah, and Nilesh Pravinchandra Doshi.
Strategic Allocation of Proceeds
Sai Parenteral has outlined a comprehensive plan for utilizing the proceeds from the public offer. Over ₹100 crore is earmarked for capacity expansion and upgrading manufacturing facilities, aimed at enhancing production capabilities. Additionally, ₹18 crore will be invested in establishing a new research and development (R&D) centre to foster innovation.
The company plans to allocate ₹20 crore for the repayment or prepayment of certain outstanding borrowings, which could improve its financial health. A sum of ₹33.3 crore is designated to cover working capital requirements, ensuring smooth operational flow. Furthermore, ₹36 crore will be channeled into the wholly owned subsidiary, Sai Parenteral’s Pte Limited in Singapore, specifically for the proposed acquisition of Noumed Pharmaceuticals Pty Limited in Australia. Remaining funds will be used for general corporate purposes.
Overview of Sai Parenteral's Business
Sai Parenteral is a pharmaceutical formulation company with a strong focus on research, development, and manufacturing. Its business encompasses branded generic formulations, contract development and manufacturing organisation (CDMO) products and services, catering to both domestic and international markets.
Diverse Product Portfolio
The company's portfolio spans various therapeutic segments, including cardiovascular, neuropsychiatry, anti-diabetic, respiratory health, antibiotics, gastroenterology, vitamins, minerals and supplements (VMS), analgesics, and dermatology. It offers multiple dosage forms such as injectables, tablets, capsules, liquid orals, and ointments.
In the injectables domain, Sai Parenteral specializes in sterile manufacturing for critical care and penicillin-based therapies. It provides advanced delivery systems including dry powder injections, pre-filled syringes, ampoules, and vials.
Market Reach and Expansion
Sai Parenteral manufactures and sells its branded generic formulations to a wide range of customers, including central and state government agencies, pharmaceutical companies, public and private hospitals, and other entities. The company initiated its export activities in the fiscal year 2023 following the acquisition of two manufacturing facilities in Hyderabad, Telangana. It now supplies products to regulated and semi-regulated markets across Australia, New Zealand, Southeast Asia, the Middle East, and Africa through distributors.
Hella Infra Market's Confidential Filing
In contrast to Sai Parenteral, Hella Infra Market has filed its draft papers with Sebi through a confidential route. As a result, specific details regarding the IPO size, structure, and utilization of funds have not been made public. This approach allows the company to maintain discretion during the regulatory review process, a strategy increasingly adopted by firms seeking to manage market expectations.
The simultaneous approval of these IPOs highlights Sebi's active role in facilitating capital market activities, supporting companies in raising funds for growth and expansion. Investors are advised to monitor further developments as both companies progress toward their listing dates.
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