Senores Pharmaceuticals IPO

Senores Pharmaceuticals IPO Details

Senores Pharmaceuticals IPO Date

Senores Pharmaceuticals IPO will open for subscription on December 20, 2024, and the closing date for the IPO is December 24, 2024, according to the offer document filed by the company with the SEBI. After this, investors are expected to be updated about the allotment status on Thursday, December 26, 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on December 27, 2024. The shares will be listed on the NSE and the BSE on Monday, December 30, 2024.

Senores Pharmaceuticals IPO Price Band

The IPO includes a fresh issue and an offer for sale. The IPO price band has been set between ₹372 to ₹391 per share. Interested investors can choose a price within this band to apply for the IPO.

The IPO is a book-building issue of ₹582.11 crore, comprising a fresh issue of ₹500 crore and an offer for sale of ₹82.11 crore.

The Senores Pharmaceuticals Limited IPO listing price will be determined on December 30, 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

Senores Pharmaceuticals IPO Lot Size

The Senores Pharmaceuticals Limited IPO details have been declared. The minimum lot size for an application is 38 shares, and the investor would have to apply for a minimum of 1 lot. Meanwhile, the IPO issue size is approximately ₹582.11 crore.

Senores Pharmaceuticals IPO Objective

The company proposes to utilise the net proceeds of the issue in the following manner:

• Set up new manufacturing facility: The company will invest ₹107.00 crore in its subsidiary, Havix, to build a sterile injection facility in Atlanta, boosting manufacturing capacity.
• Repayment of loans: The company will use ₹73.48 crore to repay its loans and invest ₹20.22 crore in its subsidiary, Havix, for loan repayment.
• Working capital requirements: The company will allocate ₹43.26 crore for its own working capital needs and ₹59.48 crore to its subsidiaries for their working capital requirements.
• Acquisitions and Growth: A portion of the funds will be used to support the company’s inorganic growth through acquisition and for general corporate purposes.

About Senores Pharmaceuticals

Senores Pharmaceuticals Limited, established in 2017, is a research-driven company focused on developing and manufacturing a wide range of generic pharmaceutical products. The company operates in the B2B segment, primarily focusing on the regulated markets of the US, Canada, and the UK, with a presence in 43 emerging markets. 

The company operates through two key business models: Marketed products (ANDA products and sourced products) and contract development and manufacturing operations (CDMO). Marketed products contribute 90.05% to the overall revenue, while the rest came from the CDMO segment.    

The company leverages its R&D capabilities to identify and develop niche molecules for unmet medical needs across various therapeutic areas. As of September 2024, Senores Pharmaceuticals has received approvals for 19 ANDA (Abbreviated New Drug Application) and has commercialised 21 products from these ANDA approvals. 

Some of the company’s products also have exclusivity periods in key markets, during which no other company can launch competing versions of the same product for six months. The company continues to invest in expanding its pipeline, which includes additional ANDA filings and product launches in the coming years. According to the company, it has already filed six ANDAs, while 33 ANDAs are under development as of September 30, 2024. 

Senores Pharmaceuticals has long-term marketing agreements with major global companies, generating revenue through in-licensing, transfer prices, and profit sharing. Its USFDA-approved Atlanta facility serves the US, Canada, and UK markets. Four successful FDA audits have been conducted since 2019, including a recent one in April 2024. Customers have audited the facility eight times since 2018. 

Between FY22 and FY24, the company's revenue from operations rose at a CAGR of over 289.09%, while net profit rose 474.5% during the same period. Meanwhile, the global pharmaceutical market, valued at $1,635 billion in 2023, is projected to reach $2,251 billion by 2028, growing at a CAGR of 6.6%. Generic drugs, which accounted for 25.1% of the market in 2023, are expected to grow at a CAGR of 5.1% to reach $527.00 billion by 2028. This upbeat industry trend could offer future business opportunities for companies like Senores Pharmaceuticals. 

Now, Senores Pharmaceuticals Limited is launching its initial public offer (IPO). The total IPO issue size is ₹582.11 crores, comprising a fresh issue and an offer for sale. Its shares will be listed on the NSE and BSE.

Company Name: Senores Pharmaceuticals Limited.

Company Established On: December 26, 2017

Company Type: Private Limited Company

Managing Director/Promoter:  Swapnil Jatinbhai Shah

Financial snapshot

Senores Pharmaceuticals IPO Analysis

Strengths and Opportunities

1. The company operates a US FDA-approved facility in Atlanta, enabling access to regulated markets like the US, Canada, and the UK.
2. It focuses on developing speciality and complex products with limited competition, ensuring stable pricing and higher profitability, and leveraging exclusivity opportunities like CGT designation to dominate niche markets.
3. Strategic alliances with major pharmaceutical companies ensure predictable cash flows, enhanced market reach, and operational stability.
4. The company markets products in 43 emerging markets, focusing on niche, less-competitive products, targeting regions like Latin America, Africa, and Southeast Asia.
5. Intensive R&D investment allows the identification and development of niche, high-growth pharmaceutical products in India and the US.
6. Led by experienced promoters and a qualified management team with extensive industry expertise, the company ensures strategic growth and efficient operations across global markets.

Risks and Threats

1. The company relies on third-party marketing partners and distributors, and any loss, financial deterioration, or reduced demand could negatively impact financial condition and cash flows.
2. The business depends on the growth of the regulated markets of the US, Canada, and the UK, and any decline in market growth or failure to adapt to changing conditions could negatively impact it.
3. The top 10 customers accounted for 78.12% of overall revenue in FY24, and losing any of them could negatively impact operational performance.
4. The company has experienced negative cash flows from operations over the past three fiscal years, which may continue to impact its business and operations.
5. Compared to other countries, they derived 66.63% of their revenue from the US in FY24; a reduction in demand from the region could negatively impact the company's financial performance.
6. The company depends on a limited number of CDMO and CMO customers.
7. They are facing ongoing litigation about their company, subsidiaries, Directors, and promoters, which involves tax and statutory/regulatory proceedings.
8. The company's reliance on contract research organisations for bioequivalence studies means failures could delay approvals.
9. The company has experienced delays in statutory dues payments, which could result in penalties. 

How to apply for the Senores Pharmaceuticals IPO?

If you are interested to invest in Senores Pharmaceuticals IPO, following are the steps to apply:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Senores Pharmaceuticals IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

You can also pre-apply for the Senores Pharmaceuticals IPO on Upstox which usually begins a day before the IPO opens for subscription.