Senores Pharmaceuticals Gets SEBI Nod to Raise Funds via IPO

Ahmedabad-based Senores Pharmaceuticals Limited has received final approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO). The company, which filed its IPO papers in July 2024, has plans to raise up to Rs.500 crore through a mix of fresh equity issuance and an offer for sale (OFS) by existing shareholders.

Senores Pharmaceuticals IPO 

Senores Pharmaceuticals IPO will comprise a fresh issue of shares worth Rs.500 crore and an offer for sale (OFS) of 27 lakh shares by promoters and non-promoter investor Prakash M. Sanghvi. The promoters hold a 66.67% stake in the company, and they will offload a total of 17 lakh shares, while Sanghvi will sell 10 lakh shares. Additionally, the company may raise Rs.100 crore through a pre-IPO placement, potentially reducing the size of the fresh issue.

Utilization of Funds

The company plans to utilize Rs.107 crore from the fresh issue to set up a manufacturing facility for sterile injections in Atlanta, U.S., through its subsidiary, Havix Group, Inc. Furthermore, Rs.93 crore will be allocated toward debt repayment, while Rs.102.74 crore will fund working capital requirements and support the company’s inorganic growth, including acquisitions.

Business Performance

Senores Pharmaceuticals has made big strides. They secured approvals for 19 Abbreviated New Drug Applications (ANDAs) and commercialized 21 products in the U.S. and Canadian markets. Its portfolio includes complex pharmaceutical products, with a focus on underserved therapeutic segments like antibiotics, antifungals, and blood-related therapies.

In FY24, Senores reported a fourfold increase in its profit, reaching Rs.32.71 crore, compared to Rs.8.43 crore in FY23. Its revenue surged sixfold, from Rs.35.34 crore to Rs.214.52 crore, driven by a hike in product sales and operating income.

Conclusion: With the SEBI’s nod in hand, Senores Pharmaceuticals seems ready to expand its operations and strengthen its presence in global markets. Senora Pharmaceuticals IPO will be interesting to watch in terms of its growth plans, including the expansion of its manufacturing capacity and acquisitions.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.