Senores Pharmaceuticals Set to Launch IPO to Fuel Ambitious Expansion Plans

Senores Pharmaceuticals Ltd, an Ahmedabad-based company, has filed initial papers with Sebi for an IPO. The offering includes both a fresh issue of shares valued at Rs 500 crore and an OFS of up to 27 lakh shares. The funds will support new manufacturing facilities, working capital, and corporate activities.

Senores Pharmaceuticals Ltd has filed preliminary papers with capital markets regulator Sebi to initiate a fundraising round through an initial public offering (IPO).

The Ahmedabad-based pharmaceutical company's IPO will combine a fresh issuance of shares amounting to Rs 500 crore and an offer for sale (OFS) comprising up to 27 lakh equity shares by promoters and other selling shareholders, as per the draft red herring prospectus (DRHP).

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

Additionally, the company may raise up to Rs 100 crore through a pre-IPO placement, which would consequently reduce the fresh issue size.

Proceeds from the fresh issuance are earmarked for setting up a manufacturing facility for sterile injections in Atlanta, meeting working capital requirements, supporting inorganic growth, and paying off debts. A portion will also cover general corporate purposes.

Specialising in developing specialty and complex pharmaceutical products, Senores Pharmaceuticals had launched 54 products in key therapeutic areas by March.

The company has three R&D facilities in India and the US, with plans to consolidate these into a dedicated facility in Ahmedabad.

For future growth, Senores intends to expand its Atlanta facility, enhance R&D capabilities, and set up a niche injectables manufacturing unit in the US.

The firm received approvals for 19 ANDAs and commercialised 21 products in North American markets as of March 2024.

Financially, Senores Pharma's revenue surged to Rs 214.52 crore in FY24 from Rs 35.34 crore in FY23, while profit after tax jumped to Rs 32.71 crore from Rs 8.43 crore.

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