Senores Pharmaceuticals IPO to open on Dec 20, firm aims to raise Rs 500 cr via fresh issue

Senores Pharmaceuticals IPO

Senores Pharmaceuticals has filed red herring prospectus with the Registrar of Companies as it plans to launch IPO for public subscription on December 20. The company will disclose price band details in next couple of days.

The IPO is a combination of fresh issuance of shares worth Rs 500 crore, and an offer-for-sale of 21 lakh equity shares by existing shareholders including promoters. The offer includes a reservation of up to 75,000 equity shares for company's employees.

Promoters Swapnil Jatinbhai Shah, Ashokkumar Vijaysinh Barot, and Sangeeta Mukur Barot will be offloading 11 lakh equity shares in the offer-for-sale, and the remainder 10 lakh shares will be sold by other selling shareholder Prakash M Sanghvi.

Promoters' shareholding in the company stands at 66.67 percent at the time of filing RHP, and the remaining 33.33 percent shares are owned by public, including Sanghvi family.

The Gujarat-based pharmaceutical company will open its IPO anchor book for institutional investors for a day on December 19, while the offer will close for public subscription on December 24. Up to 75 percent of the net issue (excluding employees portion) is reserved for qualified institutional buyers, 15 percent for non-institutional investors and the remainder 10 percent shares for retail investors.

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Its business is primarily focused on the regulated markets of US, Canada and the United Kingdom, while having presence in the emerging markets across 43 countries. It also manufactures critical care injectables and APIs (active pharmaceutical ingredients).

Senores will spend Rs 107 crore out of net fresh proceeds (excluding offer expenses) for setting up a manufacturing facility for the production of sterile injections in Atlanta facility. Further, Rs 93.7 crore will be used for repaying debt, and Rs 102.74 crore for working capital requirements. And the balance funds will be utilised for inorganic growth and general corporate purposes.

The company recorded healthy financial performance in the past years with net profit growing nearly four-fold to Rs 32.7 crore in the year ended March 2024, up from Rs 8.4 crore in the previous fiscal. Revenue during the fiscal 2024 jumped over five-fold to Rs 214.5 crore, up from Rs 35.3 crore in the fiscal 2023. Profit for six-month period ended September 2024 stood at Rs 23.94 crore on revenue of Rs 181 crore.

Investors can start trading in Senores Pharmaceuticals shares on the BSE and NSE, effective December 30. Equirus Capital, Ambit, and Nuvama Wealth Management are acting as the book running lead managers to the issue.

Senores had filed draft red herring prospectus with the capital markets regulator SEBI towards the end of July, while the regulator approved those draft papers on October 15.

This would be the second public issue opening on December 20, after Ventive Hospitality, while this would be the 12th IPO in current month.