The Senores Pharmaceuticals IPO, a ₹582.11 crore offering, opened for subscription on December 20, 2024, and will close on December 24, 2024. The company is offering shares priced between ₹372 and ₹391 apiece, with a minimum application of 38 shares and multiples thereof.
Key Details of Senores Pharmaceuticals IPO
| Details | Information |
|---|---|
| IPO Dates | December 20, 2024 – December 24, 2024 |
| Price Band | ₹372 – ₹391 per share |
| Minimum Investment Lot | 38 shares and multiples thereafter |
| Issue Size | ₹582.11 crore |
| Type of Issue | Fresh Issue (₹500 crore) and Offer-for-Sale (21,00,000 shares) |
| Anchor Allocation | ₹260.6 crore from 66.65 lakh shares at ₹391 apiece |
| Tentative Listing Date | December 30, 2024 |
| Book Running Lead Managers | Equirus Capital, Ambit, Nuvama Wealth Management |
| Registrar | Link Intime India |
| Reservations | QIBs: 75%, NIIs: 15%, Retail Investors: 10% |
| Return on Equity (RoE) | 23.6% |
| P/E Ratio at Upper Price Band | 32 times |
| Market Cap Post IPO | ₹1,800.6 crore |
About Senores Pharmaceuticals
Founded in Ahmedabad, Senores Pharmaceuticals specializes in:
- Manufacturing pharmaceutical products for regulated markets like the US, Canada, and the UK, along with emerging markets.
- Developing critical care injectables, APIs, and complex specialty pharmaceutical products.
- Operating across 43 countries with partnerships with hospitals and distributors.
As of September 30, 2024, the company has launched 55 products in key therapeutic areas like antibiotics and anti-fungal treatments.
Financial Performance
Senores Pharmaceuticals has demonstrated significant growth:
- Revenue: ₹183.35 crore for the six months ending September 30, 2024.
- Net Profit: ₹23.94 crore during the same period.
- CAGR Growth (FY22-FY24):
- Revenue: 289.1%.
- EBITDA: 361.6%.
- PAT: 474.5%.
Key Highlights and Strengths
- Strong Presence in Regulated Markets: The company has a foothold in key regulated markets like the US, Canada, and the UK.
- Product Diversity: Focus on critical care injectables, APIs, and niche therapeutic areas.
- Inorganic Growth Strategy: Plans to leverage acquisitions and strategic initiatives for expansion.
- R&D Capabilities: A robust pipeline of new products tailored for diverse markets.
Concerns and Risks
- Regulatory Dependence: Operations in highly regulated markets expose the company to stringent compliance requirements.
- Debt Obligations: A significant portion of proceeds will go toward debt repayment.
- Offer-for-Sale Component: Part of the issue is an OFS, meaning some proceeds won’t directly benefit the company’s operations.
Analyst Recommendations
Canara Bank Securities
- Rating: Subscribe.
- Highlights robust financial performance and favorable valuations compared to peers. Notes potential for revenue diversification and margin expansion.
Anand Rathi Research
- Rating: Subscribe.
- Recommends subscribing, citing fair valuations and strong presence in regulated and emerging markets.
SBI Securities
- Rating: Subscribe for Long Term.
- Praises the company’s CAGR growth and long-term prospects. Views valuation as reasonable relative to peers.
StoxBox
- Rating: Subscribe.
- Emphasizes the company’s leadership in therapeutic areas and robust financial performance. Finds valuations fair.
Aditya Birla Money
- Rating: Subscribe.
- Sees robust growth potential and scope for profitability improvement despite fair pricing.
Investment Rationale
Senores Pharmaceuticals is well-positioned to leverage its established presence in regulated markets and its strong financial growth trajectory. With fair valuations and significant market opportunities, the IPO holds long-term potential. However, investors should consider the risks, including regulatory dependence and debt obligations.
FAQs
What is the price band for the Senores Pharmaceuticals IPO?
The price band is ₹372-391 per share.
What is the minimum investment for retail investors?
The minimum investment requires 38 shares, amounting to approximately ₹14,136-₹14,858.
When does the IPO close for subscription?
The IPO closes on December 24, 2024.
What is the use of the IPO proceeds?
The proceeds will fund subsidiary investments, debt repayment, working capital requirements, and strategic acquisitions.
When will the shares be listed?
The shares are expected to be listed on December 30, 2024.
Is the IPO recommended for short-term gains?
While analysts see the IPO as fairly valued, most recommend subscribing for long-term gains.
Who are the lead managers for the IPO?
The lead managers are Equirus Capital, Ambit, and Nuvama Wealth Management.
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