Senores Pharmaceuticals Files INR 500 Cr IPO with SEBI

This IPO comprises a fresh issue of shares worth INR 500 Cr and an offer for sale (OFS) of up to 27 Lakh equity shares by the promoters and other selling shareholders, as outlined in the DRHP.

Ahmedabad-based Senores Pharmaceuticals has officially filed preliminary documents with the SEBI to launch its initial public offering (IPO) to raise INR 500 Cr.

This IPO comprises a fresh issue of shares worth INR 500 Cr and an offer for sale (OFS) of up to 27 lakh equity shares by the promoters and other selling shareholders, as outlined in the draft red herring prospectus (DRHP).

The funds raised from the fresh issuance will be allocated to various strategic initiatives.

These include setting up a manufacturing facility for sterile injections at the Atlanta facility, funding working capital requirements for the company and its subsidiaries, supporting inorganic growth through acquisitions and other strategic initiatives, and debt repayment.

A portion of the proceeds will also be used for general corporate purposes.

The IPO also includes a reservation for a subscription by eligible employees.

Additionally, the pharmaceutical company may consider raising up to INR 100 Cr through a pre-IPO placement. If this placement is completed, the size of the fresh issue will be reduced accordingly, per the company filing.

Reportedly, Equirus Capital, Ambit, and Nuvama Wealth Management are the book-running lead managers for the issue. The equity shares are proposed to be listed on both the BSE and the NSE.

Founded in 2017, Senores Pharmaceuticals specializes in identifying, developing, and manufacturing various specialty and complex pharmaceutical products. The company had launched 54 products in major therapeutic segments, including antibiotics, anti-bacterial, anti-fungal, and bloodline as of March this year.

In terms of future growth, Senores is expanding its Atlanta facility through a brownfield project and enhancing its R&D capabilities by installing additional laboratory equipment.

Furthermore, the company plans to establish a niche injectables manufacturing facility in the US to produce and market high-value injectables for the American market.

Financially, Senores Pharma's revenue from operations surged to INR 214.52 Cr in FY24, up from INR 35.34 Cr in FY23. Its profit after tax also increased significantly, reaching INR 32.71 Cr in FY24, compared to INR 8.43 Cr in the previous fiscal year.

Recent IPOs in the Healthcare Space

Recently, Bain Capital-backed Emcure Pharmaceuticals raised INR 583 Cr from anchor investors, one day before its initial public offering (IPO) opened for public subscription on 3rd July.

The anchor investors included major financial institutions such as HDFC Mutual Fund, ICICI Prudential MF, SBI MF, Abu Dhabi Investment Authority, and Goldman Sachs Asset Management, among others.

Nephrocare India (NCIL), a multi-specialty healthcare provider backed by industry veteran Deepak Parekh, filed documents with SEBI to raise around INR 40 Cr through an initial public offering (IPO) to fuel its expansion ambitions.

The funds will be primarily used to establish a new multi-specialty hospital in Madhyamgram, Kolkata, and for other general corporate purposes.