Senores Pharma sets price band of Rs 372-391 for Rs 582 cr IPO to open Fri

Senores Pharmaceuticals Ltd on Wednesday said it has fixed a price band of Rs 372-391 per share for its Rs 582-crore initial public offering (IPO) that opens for subscription on December 20.

The initial share-sale will conclude on December 24, the company announced.

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 21 lakh shares valued Rs 82.11 crore, by promoters and other selling shareholders, at the upper end of the price band.

The public issue includes a reservation of 75,000 shares for employees. 

Proceeds from the fresh issue will be utilized for setting up a manufacturing facility for 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.

The company said that 75 per cent of the issue has been reserved for qualified institutional buyers, 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.

Investors can bid for a minimum of 38 shares and in multiples of 38 shares thereafter.

Senores Pharmaceuticals specializes in identifying, developing, and manufacturing a wide array of specialty, underserved, and complex pharmaceutical products, positioning itself as a preferred partner for select customers. The company has several products in major therapeutic segments including antibiotics, anti-bacterial, anti-fungal and blood line.

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 the financial front, Senores Pharma's revenue from operations increased multifold to Rs 214.52 crore in fiscal 2024 from Rs 35.34 crore a year ago and profit after tax climbed to Rs 32.71 crore from Rs 8.43 crore.

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 BSE and NSE.