Senores Pharma files IPO with Sebi, aims to raise Rs 500 cr via fresh issue

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Senores Pharmaceuticals Ltd has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).

The Ahmedabad-based company's IPO is a combination of fresh issuance of shares worth Rs 500 crore and an offer for sale (OFS) of up to 27 lakh equity shares by promoters and other selling shareholders, according to the draft red herring prospectus (DRHP).

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

The pharma company may consider raising up to Rs 100 crore as pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.

Proceeds from its fresh issuance will be utilised for setting up a manufacturing facility for the production of sterile injections in its Atlanta facility; funding the working capital requirements of the company and its subsidiaries; supporting inorganic growth through acquisition and other strategic initiatives and payment of debt. Besides, a portion will be used for general corporate purposes.

Senores Pharmaceuticals specialises in identifying, developing, and manufacturing a wide array of specialty and complex pharmaceutical products. The company had launched 54 products in major therapeutic segments, including antibiotics, anti-bacterial, anti-fungal and blood line as of March this year.

As of March 2024, the company had three R&D facilities in India and the US and is in the process of consolidating its R&D facilities into one proposed dedicated facility in Ahmedabad.

On future growth, the company said it is in the process of expanding its Atlanta facility by implementing a brownfield project, and ramping up its R&D facilities by installing additional laboratory equipment.

Also, it intends to set up a niche injectables manufacturing facility in the US to carry out manufacturing and marketing of high value-added injectables for the US market.

Senora Pharma has received approvals for 19 ANDAs (abbreviated new drug applications) and has commercialised 21 products in the US and Canada markets, as of March 31, 2024.

As of May 31, 2024, the pharma firm identified and filed 6 ANDAs and it had six products in stability and two products for ongoing exhibits. Additionally, three products are ready for exhibit, and 34 ANDAs are under development.

On the financial front, Senores Pharma's revenue from operations increased multifold to Rs 214.52 crore in FY24 from Rs 35.34 crore in FY23, while its profit after tax rose to Rs 32.71 crore in FY24 from Rs 8.43 crore in FY23.

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