Senores Pharmaceuticals Ltd IPO: 10 Key Things to Know Before Investing
Senores Pharmaceuticals Ltd, a global research-driven pharmaceutical company, is launching its ₹582.11 Cr Initial Public Offering (IPO) from December 20th to December 24th, 2024. With a strong focus on specialty and complex pharmaceutical products for regulated markets, including the US, Canada, and the UK, Senores Pharmaceuticals offers an exciting opportunity for investors looking to benefit from a growing pharmaceutical market.
Here are the 10 key things you should know before investing in the Senores Pharmaceuticals Ltd IPO:
- What makes Senores Pharmaceuticals a good opportunity?
Senores Pharmaceuticals Ltd specializes in developing and manufacturing specialty, underpenetrated, and complex pharmaceutical products for regulated markets. The company operates through US-based subsidiaries and has a strong presence in emerging markets, with 205 marketed products and 406 filed registrations.
With key partnerships with renowned players like Prasco LLC, Lannett Company Inc., and Dr. Reddy’s Laboratories, Senores is well-positioned to capitalize on the growing demand for pharmaceutical products in both regulated and emerging markets.
- What are the IPO dates, price band, and issue size?
Here are the key details of the IPO:
- IPO dates: December 20th – December 24th, 2024
- Listing date: December 30th, 2024
- Price band: ₹372 – ₹391 per share
- Total issue size: ₹582.11 Cr
- Face value: ₹10 per share
- Listing Exchange: BSE, NSE
- Lot Size: 38 Shares
- Promoters: Swapnil Jatinbhai Shah and Ashokkumar Vijaysinh Barot
- What is the minimum investment for the IPO?
The minimum investment required to apply for the Senores Pharmaceuticals IPO is ₹14,136, based on the lot size of 38 shares at the lower price band of ₹372 per share. However, to increase your chances of allotment, we recommend applying at the upper price band, which would require ₹14,858 (38 shares at ₹391 per share).
- What does the company do?
Senores Pharmaceuticals Ltd focuses on developing specialty pharmaceutical products, particularly for the US, Canada, and UK-regulated markets. The company operates through subsidiaries, including Havix, which manages a US FDA-approved facility, and SPI, which handles intellectual property for ANDA approvals.
The company also manufactures API products and critical care injectables, serving emerging markets like the Philippines, Tanzania, and Peru, with plans for expansion into more regulated markets.
- What is the objective of the IPO?
The primary objectives of the Senores Pharmaceuticals IPO are:
- To fund capital expenditure for setting up a sterile injections manufacturing facility at the Atlanta facility.
- To repay or prepay certain borrowings, both for the company and its subsidiary Havix Group.
- To fund working capital requirements for Senores Pharmaceuticals and its subsidiaries.
- To pursue inorganic growth through acquisitions and other strategic initiatives.
- How much is reserved for retail and other investors?
The IPO allocation is as follows:
- Qualified Institutional Buyers (QIBs): Up to 75%
- Non-Institutional Investors (NIIs): At least 15%
- Retail Investors: At least 10%
- What are the key strengths and risks?
Strengths:
- Ability to cater to regulated markets such as the US, Canada, and the UK.
- Long-term marketing arrangements with pharmaceutical companies in these markets.
- Strong product portfolio includes specialty and complex pharmaceutical products.
- Plans for further expansion in regulated markets.
Risks:
- Heavy reliance on third-party distribution and third-party operations.
- Dependence on a few customers, with around 70% of revenue coming from the top 10 clients.
- Potential risks from regulatory changes and market dynamics in both regulated and emerging markets.
- What is the financial performance of Senores Pharmaceuticals?
The company has demonstrated strong growth over the years (INR Cr):
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | ₹621.88 Cr | ₹131.05 Cr | ₹59.15 Cr |
| Revenue | ₹217.34 Cr | ₹39.02 Cr | ₹14.63 Cr |
| Profit After Tax | ₹32.71 Cr | ₹8.43 Cr | ₹0.99 Cr |
- What is the allotment and listing timeline?
- Basis of allotment: December 26, 2024
- Refund initiation: December 27, 2024
- Shares credited to demat accounts: December 27, 2024
- Listing date: December 30, 2024
- Should you invest in Senores Pharmaceuticals Ltd IPO?
Senores Pharmaceuticals Ltd offers an exciting opportunity to invest in a growing pharmaceutical company with a strong product portfolio and strategic market presence. The company’s focus on regulated markets and its expansion into critical care injectables and API manufacturing provide solid growth potential. However, investors must consider the risks related to dependency on top clients and third-party distribution.
Evaluate your risk appetite and investment goals before participating in this IPO.
