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Private equity major TPG Capital-backed Sai Life Sciences has filed preliminary papers with capital markets regulator SEBI to raise funds through an initial public offering (IPO).

The company’s proposed IPO comprises a fresh issue of equity shares worth Rs 800 crore and an offer-for-sale (OFS) of 6.15 crore shares by a promoter, investor shareholders and other shareholders, according to the draft red herring prospectus (DRHP).

Under the OFS, one of the promoter entities—Sai Quest Syn Pvt Ltd—and investor shareholders—TPG Asia VII SF Pte Ltd, HBM Private Equity India—will partly offload their respective stakes.

At present, Sai Quest Syn holds a 5.61% stake in the company, TPG owns 39.69% shareholding and HBM Private Equity India has a 5.5% stake.

Of the IPO proceeds, funds to the tune of Rs 600 crore will be used for debt payment and a portion will be used for corporate general purposes, the draft papers filed on Friday showed.

The Hyderabad-based Sai Life Sciences provides end-to-end services across the drug discovery, development, and manufacturing value chain, for small molecule new chemical entities (NCE), to global pharmaceutical innovator companies and biotechnology firms.

According to a F&S report, India CRDMO market (contract research, development and manufacturing organisation) was amongst the fastest growing markets in APAC over 2018-2023. This growth is expected to continue, with the Indian market projected to grow by 14% between 2023 and 2028 reaching an estimated value of $14.1 billion in 2028.

Kotak Mahindra Capital Company Ltd, IIFL Securities Ltd, Jefferies India Private Ltd and Morgan Stanley India Company Private Ltd have been appointed as merchant bankers to manage the company’s IPO.