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Ahead of the issue opening, the company has garnered ₹260.62 crore from anchor investors. The company informed the bourses that it has allocated 66.65 lakh equity shares at ₹391 per share on December 19 to anchor investors.
Foreign and Domestic Institutions who participated in the anchor included ICICI Prudential Mutual Fund, Aditya Birla Sun Life Insurance, SBI General Insurance Company, Goldman Sachs Investment (Mauritius), Societe Generale – ODI, Unity Small Finance Bank, among others.
Senores Pharmaceuticals IPO: Review
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Senores Pharmaceuticals develops and manufactures a range of pharmaceutical products primarily for the regulated markets of the US, Canada, and the UK, while also serving emerging markets. With a presence in 43 countries, the company focuses on critical care injectables, APIs, and complex specialty pharmaceutical products.
At the upper price band, the company is valued at P/E (price-to-earnings) of 55x with a market cap of ₹1,800 crore post issue of equity shares and return on net worth of 23.6% based on FY24.
On the valuation front, the brokerage believes that the company is fairly priced. Therefore, it has recommended a ‘Subscribe’ rating for the public issue.
Senores Pharmaceuticals IPO: Price band
The Ahmedabad-based company has fixed a price band of ₹372-391 per share for its initial share sale. Investors can bid for a minimum of 38 shares in one lot and in multiples of 38 shares thereafter.
Senores Pharmaceuticals IPO: GMP today
In the grey market, shares of Senores Pharmaceuticals are currently trading at ₹150, which represents a 38% premium over the issue price.
The IPO is a combination of fresh issuance of shares worth ₹500 crore and an offer for sale (OFS) of up to 21 lakh shares valued ₹82.11 crore, by promoters and other selling shareholders, at the upper end of the price band.
Senores Pharmaceuticals IPO: Structure
About 75% of the issue has been reserved for qualified institutional buyers, 15% for non-institutional buyers and the remaining 10% for retail investors.
Senores Pharmaceuticals IPO: Objective
Proceeds from the fresh issue will be used for setting up a manufacturing facility for production of sterile injections in its Atlanta facility; funding the working capital requirements of the company and its subsidiaries, supporting inorganic growth through acquisition and other strategic initiatives and payment of debt.
Besides, a portion will be used for general corporate purposes.
Company background
Senores Pharmaceuticals specialises in identifying, developing, and manufacturing a wide array of specialty, underserved, and complex pharmaceutical products, positioning itself as a preferred partner for select customers. The company has several products in major therapeutic segments including antibiotics, anti-bacterial, anti-fungal and blood line.
As of March 2024, the company had three R&D facilities in India and the US and is in the process of consolidating its R&D facilities into one proposed dedicated facility in Ahmedabad.
On the earnings front, Senores Pharma’s revenue from operations increased multifold to ₹214.52 crore in fiscal 2024 from ₹35.34 crore a year ago and profit after tax jumped to ₹32.71 crore from ₹8.43 crore.
Equirus Capital Pvt Ltd, Ambit Pvt Ltd, Nuvama Wealth Management Ltd are the book running lead managers of the Senores Pharmaceuticals IPO, while Link Intime India Pvt Ltd is the registrar.
The allotment for the Senores Pharmaceuticals IPO is expected to be finalised on December 26. Senores Pharmaceuticals IPO will list on BSE, NSE with tentative listing date fixed as December 30.
