Are you looking for an IPO that could take your investment journey to new heights? If so, Senores Pharmaceuticals Limited is offering an exciting opportunity with unique features that sets it apart from the rest of IPOs. Established in 2017, the company has already made its mark in regulated markets such as the US, Canada and the UK. So, let’s discover how its unique strategies and new products could turn your investment into profit and could this IPO be the turning point in your investment journey?
In this article, we will explore the key aspects of the Senores Pharmaceuticals IPO, its potential and what makes it an exciting investment opportunity for both seasoned and new investors.
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Table of Contents
Senores Pharmaceuticals IPO Details
Senores Pharmaceuticals IPO is a book-built issue valued at ₹582.11 crore, comprising both a fresh issue of 1.28 crore new shares of ₹500 crore and an offer for sale (OFS) of 0.21 crore existing shares of ₹82.11 crore. This dual structure allows the company to raise capital through the issuance of fresh equity while providing an opportunity for existing shareholders to monetize their holdings.
Senores Pharmaceuticals’ ₹582.11 crore IPO opens for subscription on Friday, December 20, 2024 and will close on Tuesday, December 24, 2024. The allotment for Senores Pharmaceuticals IPO is expected to be finalized on Thursday, December 26, 2024 with a tentative listing date on the stock exchanges set for Monday, December 30, 2024. The price band for Senores Pharmaceuticals shares has been set at ₹372 to ₹391 per share.
| IPO Name | Senores Pharmaceuticals Limited |
| IPO Open Date | 20 December 2024 |
| IPO Close Date | 24 December 2024 |
| Price Band | ₹372 to ₹391 per share |
| Lot Size | 38 shares |
| Face Value | ₹10 per share |
| Total-Issue Size | 1,48,87,723 shares (aggregating up to ₹582.11 Cr) |
| Fresh Issue | 1,27,87,723 shares (aggregating up to ₹500 Cr) |
| Offer for Sale | 21,00,000 shares of ₹10 (aggregating up to ₹82.11 Cr) |
| Share Holding Pre Issue | 3,32,65,865 shares |
| Share Holding Post Issue | 4,60,53,588 shares |
| Share Allotment Date | 26 December 2024 |
| Initiation of Refund | 27 December 2024 |
| Credit of Shares to Demat | 27 December 2024 |
| Listing Date | 30 December 2024 |
| UPI Cut Off Time | 24 December 2024 – 5 P.M. |
| Listing Exchange Name | BSE, NSE |
| Lead Manager(s) of Issue | Equirus Capital Private Limited, Ambit Private Limited, Nuvama Wealth Management Limited |
| Registrar of Issue | Link Intime India Private Limited |
For detailed information, you can refer to Senores Pharmaceuticals IPO RHP.
Senores Pharmaceuticals IPO GMP
Prior to its opening, the IPO has received a positive response in the unlisted market, where it is currently trading at a premium of approximately 38%. The latest Grey Market Premium (GMP) stands at ₹150, indicating an estimated listing price of ₹541.
Check IPO Live GMP: View now for Real-Time Updates
Senores Pharmaceuticals IPO Lot Size
Senores Pharmaceuticals Limited has issued 1,48,87,723 shares worth ₹582.11 crore for both a fresh and an offer for sale issue. The minimum lot size for an application is 1 lot (38 shares) and the minimum amount of investment required by retail investors is ₹14,858.
The minimum lot size investment for s-HNI (Small High Net Worth Individual) is 14 lots (532 shares), amounting to ₹2,08,012, while the maximum is 67 lots (2,546 shares), amounting to ₹9,95,486.
For b-HNI (Big High Net Worth Individual), the minimum lot size is 68 lots (2,584 shares) amounting to ₹10,10,344.
| Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail(Min) | 1 | 38 | ₹14,858 |
| Retail(Max) | 13 | 494 | ₹1,93,154 |
| s-HNI(Min) | 14 | 532 | ₹2,08,012 |
| s-HNI(Max) | 67 | 2,546 | ₹9,95,486 |
| b-HNI(Min) | 68 | 2,584 | ₹10,10,344 |
Senores Pharmaceuticals IPO Reservation Details
Below are the limits for the shares offered in the different investor categories for this IPO:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
Category Reservation Details
| Application Category | Maximum Bidding Limits | Bidding at Cut-off Price Allowed |
|---|---|---|
| Only RII (Retail) | Up to ₹2 lakhs | Yes |
| Only s-NII | ₹2 lakhs to ₹10 lakhs | No |
| Only b-NII | ₹10 lakhs to NII Reservation Portion | No |
| Only Employee | Up to ₹5 lakhs | Yes |
| Employee + RII/NII | Employee limit: Up to ₹5 lakhs (In certain cases, employees are given a discount if the bidding amount is up to ₹2 lakhs) If applying as RII: Up to ₹2 lakhs If applying as NII: sNII > ₹2 lakhs and up to ₹10 lakhs and bNII > ₹10 lakhs | Yes for shareholder/RII |
Senores Pharmaceuticals IPO Anchor Investors Details
Senores Pharmaceuticals raised ₹260.63 crore from anchor investors. The bid date for anchor investors in the Senores Pharmaceuticals IPO was December 19, 2024.
| Bid Date | December 19, 2024 |
| Shares Offered | 66,65,725 |
| Anchor Portion Size (In Cr.) | 260.63 |
| Anchor lock-in period end date for 50% shares (30 Days) | January 25, 2025 |
| Anchor lock-in period end date for remaining shares (90 Days) | March 26, 2025 |
About the Company
Next, let’s shift our focus to explore more about the company’s background, operations, strengths and risks, financial statements and key highlights.
Incorporated in December 2017, Senores Pharmaceuticals Limited develops and manufactures a wide range of pharmaceutical products primarily for the regulated markets of the US, Canada and the UK while also serving emerging markets.
The company leverages its R&D capabilities to develop and manufacture a portfolio of differentiated complex pharmaceutical products. Its focus on quality and ability to identify speciality and complex molecules has resulted in an extensive pipeline of curated complex products spanning diverse dosage forms and therapeutic domains, demonstrated through its partnerships in the regulated markets.
The company’s partners include prominent foreign and Indian pharmaceutical companies, including Prasco LLC, Lannett Company Inc., Jubilant Cadista Pharmaceuticals Inc., Alkem Laboratories Limited, Sun Pharmaceuticals Industries Limited, Dr. Reddy’s Laboratories Inc. and Cipla USA Inc.
Product Portfolio:
The company has launched 55 products in key therapeutic areas, including antibiotics and anti-fungal treatments. These include Amphetamine Sulfate Tablets, Hydroxychloroquine Sulfate Tablets, Ketoconazole Tablets, Butalbital, Acetaminophen and Caffeine Capsules, Mexiletine Hydrochloride Capsules, Ketorolac Tromethamine Tablets, Diclofenac Potassium Tablets, Diclofenac Potassium Tablets, Nicardipine Hydrochloride Capsules, Escitalopram Tablets, Prochlorperazine Maleate Tablets USP, Terazosin Capsules USP, Morphine Sulfate Tablets, Methadone Hydrochloride Tablets, Cyclobenzaprine Hydrochloride Tablets, Irbesartan Tablets, Risperidone Tablets Topiramate Capsules and Ivermectin Tablets for regulated markets.
As of September 30, 2024, the company operates in emerging markets across 43 countries and manufactures critical care injectables and APIs. It has three dedicated R&D centers in India and the United States and a modern manufacturing facility is established in Ahmedabad, Gujarat. The company has built strong partnerships with distributors and hospitals.
Competitive Strengths:
- The company serves the US, Canada and the UK regulated markets with its US FDA-approved manufacturing facility.
- A unique product portfolio tailored for regulated markets developed in a brief period.
- Long-term marketing agreements with pharmaceutical companies in the US, Canada and the United Kingdom regulated markets.
- Presence in the emerging markets with a product portfolio, including speciality or complex products.
- Robust R&D capabilities driving the differentiated portfolio of products.
Senores Pharmaceuticals IPO Objectives (Objects of the Issue)
The company plans to allocate the net proceeds from the issue for the following purposes:
- Investment in one of the Subsidiaries, Havix Group, Inc. also known as Aavis Pharmaceuticals, to fund capital expenditure requirements for setting up a manufacturing facility for the production of sterile injections in the Atlanta facility.
- Repayment/pre-payment in full or in part of certain borrowings availed by the company.
- The investment in the subsidiary, Havix, will be used for the repayment or pre-payment in whole or in part of certain borrowings taken by the subsidiary.
- Funding the working capital requirements of the company.
- Investment in the subsidiaries, Senores Pharmaceuticals Inc. (SPI) and Ratnatris Pharmaceutical Private Limited (Ratnatris) to fund their working capital requirements.
- Funding inorganic growth through acquisition and other strategic initiatives.
- General corporate purposes.
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Senores Pharmaceuticals Limited Financial Information (Restated Consolidated)
Senores Pharmaceuticals Limited’s revenue increased by 457% and profit after tax (PAT) rose by 288% in the FY24 (April 1, 2023 to March 31, 2024).
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 | 30 Sep 2024 |
| Assets | 59.15 | 131.05 | 621.88 | 678.08 |
| Revenue | 14.63 | 39.02 | 217.34 | 183.35 |
| Profit after Tax | 0.99 | 8.43 | 32.71 | 23.94 |
| Net Worth | 36.59 | 45.5 | 231.71 | 319.06 |
| Reserves & Surplus | 25.37 | 35.25 | 175.94 | 263.36 |
| Total Debt | 14.21 | 60.76 | 248.38 | 242.03 |
| Amt in ₹ Crore | ||||
Key Performance Indicators
Senores Pharmaceuticals Limited has a market capitalization of ₹1350.70 crore. As of March 31, 2024, the company’s key performance indicators (KPIs) include an impressive Return on Net Worth (RoNW) of 23.60% and a profit after tax (PAT) margin of 15.25%.
| Key Performance Indicators | Value |
|---|---|
| ROE | 23.60% |
| ROCE | 11.73% |
| Debt/Equity | 1.07 |
| RoNW | 23.60% |
| Price to Book Value | 5.84 |
| PAT Margin | 15.25% |
The EPS and PE ratios before and after the Senores Pharmaceuticals IPO issue are detailed in the list below:
| Ratios | Pre IPO | Post IPO |
| EPS (₹) | 9.83 | 13.86 |
| P/E (x) | 39.77 | 28.21 |
- The Pre-IPO EPS is calculated based on the pre-issue shareholding as of the RHP date and the latest FY earnings available in the RHP, as of March 31, 2024.
- The Post-IPO EPS is calculated based on the post-issue shareholding and annualized FY earnings as of September 30, 2024, as provided in the RHP.
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Senores Pharmaceuticals IPO Review (Apply)
The review of the Senores Pharmaceuticals IPO has been done based on the following points:
- Assets and Revenue Growth: The company’s assets have grown from ₹59.15 crore in FY22 to ₹621.88 crore in FY24, reflecting significant growth while revenue has increased from ₹14.63 crore in FY22 to ₹217.34 crore in FY24, marking an impressive growth of 234%. This reflects steady growth and a strong market presence.
- Profit Growth: PAT grew significantly from ₹0.99 crore in FY22 to ₹32.71 crore in FY24 (3200% growth). With a PAT margin of 15.25%, the company demonstrates good profitability which is good for the pharmaceutical sector.
- Valuation Metrics: Pre-IPO P/E: 39.77 | Post-IPO P/E: 28.21
As per the RHP, the company has shown Ajanta Pharma, Alembic Pharma, Caplin Point, Gland Pharma and Strides Pharma as their listed peers. They are trading at a P/E of 41.1, 32.4, 36.9, 42.4 and 32.4 (as of December 18, 2024) respectively. So, the IPO seems to be undervalued compared to the average P/E ratio of around 36x for the pharmaceutical sector.
- Return on Capital Employed (ROCE) and Return on Net Worth (RoNW):
ROCE: 11.73% reflects the company’s capital efficiency.
RoNW: 23.60% is extremely good for long-term investors.
- GMP and IPO Price Band: With a price band of ₹372 to ₹391 per share and a GMP of ₹150, the market shows a great interest, suggesting a potential listing gain of around 38%.
Strengths
- Regulated Market Focus: The company markets its products in the US, Canada and the UK through marketing and distribution agreements with pharmaceutical companies. As of September 30, 2024, the company received approvals for 19 ANDAs and has commercialised 21 products in the US and Canadian markets.
- Diverse Product Portfolio: By September 30, 2024, the company had launched 55 products across key therapeutic segments including antibiotics, antibacterials, antifungals and blood-related products. The company has a strong presence in hospitals across India, operating through distributor partnerships and direct arrangements with hospitals.
- Focus on Research & Development: Three dedicated R&D centers in India and the United States show focus of the company on R&D. The R&D laboratory at the Chhatral facility is equipped with advanced technology, including 13 high-performance liquid chromatography systems, seven stability chambers and five auto-dissolution machines.
At the Naroda facility, the R&D lab handles various chemical reactions like nitration, bromination, Friedel-Crafts, Grignard, hydrogenation, chlorination, esterification and hydrolysis. It is equipped with one UV chamber, six fume hoods and two high-performance liquid chromatography systems.
- Global Presence & Track Record: Senores Pharmaceuticals has a strong presence in emerging markets with operations in 43 countries. The company focuses on regions such as Latin America, Africa, the Commonwealth of Independent States (CIS), Southeast Asia and the Middle East.
- Experienced Management Team: The company’s management experience aids in making strategic decisions.
Risks
While Senores Pharmaceuticals presents a compelling investment case, potential investors should consider certain risks. Here are some of the risk factors involved in the IPO that investors should know before subscribing to the issue:
- Highly Regulated Sector: The company operates in a highly regulated environment. Therefore, any adverse changes in laws, regulations and government policies could negatively impact its business operations and finances.
- High Competition: The pharmaceutical industry is always competitive, especially in the US and European markets and so high competition in the pharmaceutical sector could limit growth opportunities.
- Dependence on Third-Party: Dependence on partnerships for distribution may affect market control.
- High Valuation: The price to book Value ratio of 5.84x is relatively high and it will depend on the company’s growth rate.
All the above-mentioned risks should be considered by investors before deciding to invest in the IPO.
Opinion
Given the company’s financial growth, strong fundamentals and high listing gain potential, the IPO appears attractive and therefore can be applied for both listing gains and investment. You can go through the points mentioned below to plan accordingly:
- Long-Term Investors: Based on the company’s performance to date, the issue appears to be undervalued. Therefore, investors might consider holding their investments for the long term.
- Short-Term Investors: Short-term traders or investors should pay attention to the GMP trend on the listing day for any short-term gains, which look really good as of now with a 38% return on the listing date.
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Additional Details
Promoter Holding
Mr. Swapnil Jatinbhai Shah and Mr. Ashokkumar Vijaysinh Barot are the promoters of the company. Their shareholding before and after the issue is as follows:
| Pre Issue Shareholding | 71.10% |
| Post Issue Shareholding |
Senores Pharmaceuticals IPO Allotment Status: Check Now
Senores Pharmaceuticals Limited Contact Details
Address: 1101 to 1103, 11th Floor, South Tower, One 42 opposite Jayantilal Park, Ambali Bopal Road, Ahmedabad – 380054
Phone: +91 -79-29999857
Email: [email protected]
Website: https://senorespharma.com/
Senores Pharmaceuticals IPO Registrar Details
Registrar: Link Intime India Private Limited
Address: C 101, 247 Park, L.B.S.Marg, Vikhroli (West), Mumbai – 400083
Phone: +91-2249186270
Email: [email protected]
Website: https://linkintime.co.in/Initial_Offer/public-issues.html
Disclaimer: We are not a SEBI-registered research analyst. This article is written solely for educational purposes and should not be interpreted as investment advice or recommendations. The stock market involves significant risks, so we encourage you to seek guidance from a financial advisor before making any investment decisions.
FAQs
Q1. What is Senores Pharmaceuticals IPO?
Senores Pharmaceuticals IPO is a book-built issue of both a fresh and an offer for sale issue, where the company aims to raise ₹582.11 crore through this IPO.
Q2. What is the price band of Senores Pharmaceuticals IPO?
The price band of this IPO has been fixed at ₹372 to ₹391 per share. This price range presents a good opportunity for investors.
Q3. What are the important dates for Senores Pharmaceuticals IPO?
The IPO opens on 20 December 2024 and closes on 24 December 2024. The listing of shares will take place on 30 December 2024 on NSE and BSE.
Q4. How many shares are being offered in the Senores Pharmaceuticals IPO?
A total of 1,48,87,723 shares are being offered in the company’s IPO.
Q5. What is the lot size of Senores Pharmaceuticals IPO?
The lot size of the Senores Pharmaceuticals IPO is 38 shares.
Q6. What is the expected listing gain for Senores Pharmaceuticals IPO?
The Grey Market Premium (GMP) of the Senores Pharmaceuticals IPO has reached ₹150, indicating an expected listing gain of around 38%.
Q7. Who are the lead managers of Senores Pharmaceuticals IPO?
The lead managers of this IPO are Equirus Capital Private Limited, Ambit Private Limited and Nuvama Wealth Management Limited.
Q8. How to apply for the Senores Pharmaceuticals IPO?
You can apply for the Senores Pharmaceuticals IPO online through ASBA via your bank account. Alternatively, you can apply via UPI through your stockbroker or submit an offline application form through your broker. The deadline for submitting IPO applications is December 24, 2024.
Q9. How to apply for the Senores Pharmaceuticals IPO through Angel One?
To apply for the Senores Pharmaceuticals IPO through Angle One, first Log in to the Angel One application with your credentials. Select the IPO. You will see the IPO Name “Senores Pharmaceuticals IPO”. Click on the Bid button. Confirm your Application. Now go to your UPI app or Net Banking or BHIM app to approve the mandate.
Q10. How to apply for the Senores Pharmaceuticals IPO through 5 Paisa?
To apply for the Senores Pharmaceuticals IPO through 5 Paisa. First, log in to the 5 Paisa application with your credentials. Select the IPO. You will see the IPO Name “Senores Pharmaceuticals IPO”. Click on the Bid button. Confirm your Application. Now go to your UPI app or Net Banking or BHIM app to approve the mandate.
Q11. How to apply for the Senores Pharmaceuticals IPO through Upstox?
Log in to the Upstox application with your credentials. Select the IPO. You will see the IPO Name “Senores Pharmaceuticals IPO”. Click on the Bid button. Confirm your Application. Now go to your UPI app or Net Banking or BHIM app to approve the mandate.
Q12. How to apply for the Senores Pharmaceuticals IPO through IIFL?
Log in to the IIFL application with your credentials. Select the IPO. You will see the IPO Name “Senores Pharmaceuticals IPO”. Click on the Bid button. Confirm your Application. Now go to your UPI app or Net Banking or BHIM app to approve the mandate.
