Senores Pharmaceuticals Limited, a global player catering to the pharmaceutical needs of markets like the US, Canada, UK, and emerging regions, is gearing up for its market debut with an ambitious IPO valued at ₹582.11 crores. The IPO, open for subscription from December 20 to December 24, 2024, comprises a fresh issue of 1.28 crore shares worth ₹500 crores and an offer for sale of 0.21 crore shares valued at ₹82.11 crores. This offering reflects the company’s drive to expand its footprint and capitalize on growth opportunities in the booming pharma sector.
With a price band of ₹372 to ₹391 per share and a lot size of 38 shares, retail investors can enter with a minimum investment of ₹14,858, providing a cost-effective opportunity to participate in the company’s growth journey. Share allotments are expected on December 26, 2024, with the listing slated for December 30, 2024, on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This IPO offers a promising entry point for investors eyeing the pharma sector’s potential amidst global healthcare advancements.
Senores Pharmaceuticals Limited IPO is a fundraise worth ₹582.11 crores comprising fresh issue of 1.28 crore shares and offer for sale of 0.21 crore shares. The IPO will be available for subscription from December 20, 2024, to December 24, 2024, providing an opportunity for investors looking to gain a stake in the pharma sector.
| Senores Pharmaceuticals IPO Date | December 20, 2024 - December 24, 2024 |
| Price Band | ₹372 to ₹391 per share |
| Face Value | ₹10 per share |
| Lot Size | 38 shares |
| Issue Type | Book-built issue |
| Fresh Issue | 1,27,87,723 shares of ₹10 per share, amounting to ₹500 crores |
| Offer for Sale | 21,00,000 shares of ₹10 per share, amounting to ₹82.11 crores |
| Total Issue Size | 1,48,87,723 shares of ₹10 per share, amounting to ₹582.11 crores |
| Listing at | BSE, NSE |
| Share Holding Post Issue | 4,60,53,588 |
| Share Holding Pre Issue | 3,32,65,865 |
The Senores Pharmaceuticals Limited IPO opens for subscription on December 20, 2024, and closes on December 24, 2024, with allotment slated for December 26, 2024.
| IPO Open Date | December 20, 2024 (Friday) |
| IPO Close Date | December 24, 2024 (Tuesday) |
| Basis of Allotment | December 26, 2024 (Thursday) |
| Initiation of Refunds | December 27, 2024 (Friday) |
| Credit of Shares to Demat Account | December 27, 2024 (Friday) |
| Listing Date on Exchanges | December 30, 2024 (Monday) |
| Cut-off Time for UPI Mandate Confirmation | 5 PM on December 24, 2024 (Tuesday) |
Senores Pharmaceuticals Limited, incorporated in December 2017, focuses on developing and manufacturing pharmaceutical products for highly regulated markets like the US, Canada, and the UK, alongside emerging markets in 43 countries. The company’s robust product portfolio includes diverse formulations such as tablets, capsules, and APIs catering to critical care, antibiotics, and anti-fungal treatments. As of September 30, 2024, it has successfully launched 55 products, building partnerships with distributors and hospitals across India. Its manufacturing facility in Ahmedabad, Gujarat, and three R&D facilities in India and the US reflect its commitment to quality and innovation.
With a focus on regulated and emerging markets, Senores Pharmaceuticals combines its expertise in critical care injectables and APIs to strengthen its global presence. The company’s product range includes widely used treatments like Amphetamine Sulfate, Hydroxychloroquine Sulfate, and Morphine Sulfate Tablets. These capabilities position Senores Pharmaceuticals as a competitive player in the global pharma industry, supported by its strategic investments in advanced manufacturing and R&D infrastructure.
The company intends to use the Net Proceeds from its offering to fund several strategic objectives. These include investing in its subsidiary, Havix Group, Inc., for establishing a sterile injection manufacturing facility in Atlanta and partially or fully repaying borrowings of both the company and its subsidiaries. Additional proceeds will go toward funding working capital requirements for the company and its subsidiaries, Senores Pharmaceuticals Inc. and Ratnatris Pharmaceutical Private Limited, as well as supporting inorganic growth initiatives such as acquisitions and strategic projects. Remaining funds will be allocated for general corporate purposes.
The Senores Pharmaceuticals Limited IPO showcases a healthy market capitalization of ₹1,350.70 crores as on March 31, 2024. Key performance indicators reflect the company's financial health, with a Return on Equity (RoE) of 23.60%, Return on Capital Employed (RoCE) of 11.73%, and Debt-to-Equity ratio of 1.07.
The Return on Net Worth (RoNW) stands at 23.60%, while the Price-to-Book Value (P/BV) is seen at 5.84. The PAT Margin is 15.25. On an annual basis, the company's Profit After Tax (PAT) grew by 288% while the revenue increased by 457% in the financial year ending on March 31, 2024. A comparison of earnings per share (EPS) reveals a pre-IPO EPS of ₹9.83 while it is ₹13.86 post-IPO.
| Period Ended | September 30, 2024 | March 31, 2024 | March 31, 2023 | March 31, 2022 |
| Revenue | 183.35 | 217.34 | 39.02 | 14.63 |
| Assets | 678.08 | 621.88 | 131.05 | 59.15 |
| Net Worth | 319.06 | 231.71 | 45.50 | 36.59 |
| Profit After Tax | 23.94 | 32.71 | 8.43 | 0.99 |
| Total Borrowing | 242.03 | 248.38 | 60.76 | 14.21 |
| Reserves & Surpluses | 263.36 | 175.94 | 35.25 | 25.37 |
Amount in ₹ crores
Senores Pharmaceuticals Limited stands out with its strong presence in regulated markets such as the US, Canada, and the UK, supported by a US FDA-approved manufacturing facility. Its diversified product portfolio, with 55 products across antibiotics, anti-fungals, and critical care, demonstrates its capability to cater to both regulated and emerging markets. The company operates in 43 countries, leveraging robust R&D capabilities through three advanced facilities in India and the US to develop complex generics and niche pharmaceutical products. Long-term marketing agreements with established pharmaceutical companies further enhance its revenue stability and market positioning.
Senores’ global footprint is complemented by its experienced management team and strategic partnerships with suppliers and distributors. This has facilitated exponential financial growth, with revenues surging by 457% and profits by 288% between FY23 and FY24. Its ability to meet stringent global regulatory standards and develop innovative, high-quality products strengthens its position as a competitive player in the pharmaceutical industry.
Operating in a highly regulated industry, Senores faces significant risks, including potential delays or denials in product approvals and compliance issues that could adversely impact its reputation and operations. Its heavy reliance on exports to regulated markets, particularly the US, poses revenue concentration risks, while dependence on third-party distributors makes the company vulnerable to disruptions in marketing and distribution channels. Furthermore, raw material price volatility and supply chain challenges could affect production costs and profitability.
The company’s manufacturing operations are concentrated in Gujarat, making it susceptible to regional disruptions. Recent audits have highlighted weaknesses in financial controls, which may affect investor confidence. Additionally, negative cash flows from operating activities over the past three fiscal years and high debt levels indicate financial vulnerabilities. Competition from established players and new entrants in the pharmaceutical industry further pressures its margins and market share.
The Senores Pharmaceuticals Limited IPO presents a compelling opportunity for investors to step into the pharma sector at an early public stage. While the appeal of early investment is strong, it is crucial to assess the company’s fundamentals, market positioning, and growth prospects thoroughly. Prospective investors should ensure that this IPO aligns with their financial goals and risk tolerance by conducting diligent research and understanding the industry landscape.
Transforming this promising opportunity into a strategic financial decision requires evaluating the company’s performance metrics and future potential. By aligning personal financial objectives with the investment and seeking professional advice if needed, investors can make informed decisions about participating in this IPO.
What is the Senores Pharmaceuticals IPO?
The Senores Pharmaceuticals Limited IPO is a main-board offering consisting of a fresh issue of 1.28 crore equity shares and an offer for sale of 0.21 crore shares with a face value of ₹10, aiming to raise a total of ₹582.11 crores. The share price is set between ₹372 and ₹391, with a minimum order quantity of 38 shares. This IPO will be open for subscription from December 20, 2024, to December 24, 2024. Link Intime India Private Limited is the registrar while Equirus Capital Private Limited, Ambit Private Limited, Nuvama Wealth Management Limited are the book-running lead managers.
When will the Senores Pharmaceuticals IPO open?
The Senores Pharmaceuticals Limited IPO will open for subscription on December 20, 2024, and will close on December 24, 2024.
When is the Senores Pharmaceuticals IPO listing date?
The tentative listing date for the Senores Pharmaceuticals Limited IPO is Monday, December 30, 2024.
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