The initial public offering (IPO) of research-driven pharmaceutical company Senores Pharmaceuticals opened for public subscription on December 20, 2024. The company has raised Rs 260.63 crore from anchor investors ahead of the IPO, with bidding concluding on December 19.

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IPO details
Senores Pharma’s IPO is a book-built issue aggregating Rs 582.11 crore. It consists of a fresh issue of 1.27 crore equity shares and an offer for sale by promoters and other shareholders, who are divesting up to 21 lakh shares. The price band for the IPO is set at Rs 372-391 per share.

Retail investors can apply for a minimum of one lot, consisting of 38 shares, which requires an investment of Rs 14,858. A maximum of 13 lots, or 494 shares, can be applied for at Rs 1,93,154.

The IPO will remain open for subscription until December 24, 2024. Post allotment, shares are expected to be credited to demat accounts by December 27, 2024, and the company’s shares are set to debut on the BSE and NSE on December 30, 2024.

Bajaj Broking
Bajaj Broking notes that Senores Pharmaceuticals is well-positioned within the growing pharmaceutical industry, especially in the post-pandemic era. The sector continues to witness robust demand, supported by favourable regulatory conditions in key markets. Analyzing key valuation metrics like P/E ratio, EV/EBITDA, and price-to-sales ratio, the brokerage finds the IPO reasonably priced, assuming the company sustains its financial strength and competitive market standing.

Utilization of proceeds
Proceeds from the fresh issue will be utilized for capital expenditure to establish a sterile injectables manufacturing facility for its subsidiary Havix Group, Inc. Additionally, the funds will be used to repay or prepay debt, support working capital requirements, and drive inorganic growth through acquisitions and strategic initiatives. Remaining funds will go toward general corporate purposes.

Company overview
Incorporated in 2017, Senores Pharmaceuticals is a global research-driven pharmaceutical company focusing on developing and manufacturing critical care injectables and APIs. The company caters primarily to regulated markets in the US and Canada and has launched 55 products in key therapeutic areas like antibiotics and antifungals.

With operations spanning 43 countries and three R&D facilities in India and the US, Senores Pharmaceuticals has established partnerships with hospitals and distributors across several Indian states and emerging markets worldwide.

Investors may evaluate the IPO based on its growth potential, operational performance, and future expansion plans.