Senores Pharmaceuticals IPO listing bonanza: shares debut at 53% premium, pare gains at close

Senores Pharma IPO, priced in the range of Rs 372-391 per share, closed on December 24, with huge demand from institutional and retail investors, setting high expectations for listing gains.

Senores Pharmaceuticals shares made a robust stock market debut on Monday, listing at 53 percent premium over the IPO price as expected, but cooled off to end the day a little lower. Senores Pharma stock got listed at Rs 600 on the NSE vs the public issue price of Rs 391. It fell over 6 percent to Rs 562 at close.

While the strong listing reflected the overwhelming demand for Senores Pharma shares seen during the IPO, which was subscribed 93.41 times, the closing price, which was still 44 above the issue price, shows continued investor interest.

Ahmedabad-based Senores Pharmaceuticals raised Rs 582.11 crore through its IPO, which comprised a fresh issue of Rs 500 crore and an offer-for-sale of Rs 82.11 crore. The IPO, priced in the range of Rs 372-391 per share, closed on December 24, with huge demand from institutional and retail investors. The qualified institutional buyers (QIBs) segment received 94.66 times subscription, while non-institutional investors (NIIs) and retail individual investors (RIIs) subscribed 96.11 times and 89.2 times their respective quotas.

Grey market trends leading up to the listing had signalled a debut price in the Rs 600-700 range, representing a significant premium of 50-70 percent over the IPO price. Analysts said that the IPO’s attractive valuations and Senores Pharmaceuticals’ strong operational performance were key factors driving investor interest across categories, a trend they expect to continue post-listing.

Senores Pharmaceuticals specialises in underserved and complex pharmaceutical products, which positions it well to capitalise on niche market opportunities. Senores Pharmaceuticals reported a strong operational performance for FY24, with a 457 percent revenue increase and a 288 percent rise in profit after tax.

With a significant 457 percent jump in revenue for FY24 and plans to expand its specialty product portfolio, the company is well-placed for sustained growth. Analysts remain optimistic about its long-term potential but recommend closely monitoring its financial performance in the upcoming quarters.

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