Table of Contents
Company Overview
Senores Pharmaceuticals Limited (Senores Pharmaceuticals IPO) is a global research-driven pharmaceutical company specializing in developing and manufacturing generic pharmaceutical products. Their focus is primarily on the B2B segment for Regulated Markets across various therapeutic areas and dosage forms.
Key Business Segments
- Regulated Markets: Primarily US, Canada, and UK
- Emerging Markets: Presence in 43 countries
- Critical Care Injectables: Supplying to hospitals across India
- API Manufacturing: For domestic market and SAARC countries
Senores Pharmaceuticals IPO Details
| Particulars | Details |
|---|---|
| Issue Type | Book Built Issue IPO |
| Fresh Issue | Up to 1,27,87,723 Equity Shares aggregating up to ₹5,000 million |
| Offer for Sale | Up to 2,100,000 Equity Shares by Selling Shareholders |
| Face Value | ₹10 per Equity Share |
| Price Band | ₹372 to ₹391 per share |
| Minimum Bid Lot | 38 Equity Shares |
| Employee Reservation | Up to 75,000 Equity Shares |
| Listing At | BSE, NSE |
| IPO Open Date | Friday, December 20, 2024 |
| IPO Close Date | Tuesday, December 24, 2024 |
| Allotment Date | Thursday, December 26, 2024 |
| Listing Date | Monday, December 30, 2024 |
Offer Structure
| Category | Allocation |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50% of the Net Offer |
| Non-Institutional Investors (NII) | Not less than 15% of the Net Offer |
| Retail Individual Investors (RII) | Not less than 35% of the Net Offer |
Use of Proceeds
| Objective | Amount (₹ million) |
|---|---|
| Investment in Havix for capital expenditure | 1,070.00 |
| Repayment/pre-payment of borrowings (Company) | 734.80 |
| Repayment/pre-payment of borrowings (Havix) | 202.20 |
| Working capital requirements (Company) | 432.59 |
| Working capital requirements (Subsidiaries) | 594.83 |
| Inorganic growth and general corporate purposes | [•] |
Proposed Expansion in Atlanta Facility
The company intends to expand its operations at its Atlanta Facility in the US. This expansion aims to:
- Increase the production capacity for Tablets and Capsules
- Enhance the company’s manufacturing capabilities in the US market
Investment in Subsidiary
Senores plans to invest ₹1,070 million in its subsidiary Havix for capital expenditure requirements. This investment will be used for:
- Setting up a manufacturing facility for the production of sterile injections at the Atlanta Facility
- Expanding the company’s product portfolio in the US market
Working Capital Investments
The company plans to invest in working capital for both itself and its subsidiaries:
- ₹432.59 million for funding working capital requirements of Senores Pharmaceuticals Limited
- ₹594.83 million for funding working capital requirements of its subsidiaries, namely SPI and Ratnatris
Inorganic Growth
Senores has allocated funds for potential acquisitions and strategic initiatives, although specific details are not provided. This indicates the company’s intention to grow through mergers, acquisitions, or partnerships in the future.These expansion plans demonstrate Senores Pharmaceuticals’ focus on strengthening its manufacturing capabilities, expanding its product range, and growing its presence in key markets, particularly the US.
Key Management Personnel
- Chairman: Sanjay Shaileshbhai Majmudar
- Managing Director: Swapnil Jatinbhai Shah
- Chief Financial Officer: Deval Rajnikant Shah
- Company Secretary and Compliance Officer: Vinay Kumar Mishra
Promoters and Shareholding
| Shareholder Category | Pre-Offer Shareholding |
|---|---|
| Promoters | 23.39% |
| Promoter Group | 43.27% |
| Other Selling Shareholders | 4.44% |
| Total | 71.10% |
Senores Pharmaceuticals IPO Financial Highlights
(in ₹ million, except per share data)
| Particulars | FY 2024 | FY 2023 | FY 2022 | H1 FY 2025 |
|---|---|---|---|---|
| Total Income | 2,173.42 | 390.21 | 146.31 | 1,833.53 |
| Net Profit | 327.08 | 84.33 | 9.91 | 239.43 |
| EPS (Basic) (₹) | 13.67 | 8.87 | 1.81 | 7.20* |
| Net Worth | 2,042.68 | 454.99 | 365.90 | 2,915.01 |
*Not annualized
Peer Comparison
| Company | Face Value (₹) | EPS (Basic) (₹) | P/E Ratio | RoNW (%) | NAV per share (₹) |
|---|---|---|---|---|---|
| Senores Pharmaceuticals Limited | 10 | 13.67 | [•] | 16.01% | 66.96 |
| Gland Pharma Limited | 1 | 65.97 | 35.53 | 15.94% | 414.06 |
| Suven Pharmaceuticals Limited | 1 | 21.24 | 22.32 | 30.24% | 70.24 |
| Laurus Labs Limited | 2 | 11.01 | 37.24 | 20.57% | 53.52 |
| Neuland Laboratories Limited | 10 | 80.96 | 18.55 | 15.13% | 534.91 |
Notes:
- All financial information is based on consolidated financials for the year ended March 31, 2024.
- P/E ratio is calculated as closing price on July 21, 2024 / EPS (Basic).
- RoNW is calculated as Net Profit after tax attributable to equity shareholders / Net worth at the end of the year.
- NAV per share is calculated as Net Worth / Number of equity shares outstanding at the end of the year.
Financial Highlights Comparison
- Revenue Growth:
- Senores Pharmaceuticals: Grew from ₹146.31 million in FY2022 to ₹2,173.42 million in FY2024
- Peers: Specific growth rates not provided, but industry average growth is in the range of 10-15% annually
- Profitability:
- Senores Pharmaceuticals: Net profit margin of 15.05% in FY2024
- Peers: Net profit margins range from 12% to 25%
- Return on Net Worth:
- Senores Pharmaceuticals: 16.01%
- Peers: Range from 15.13% to 30.24%
- Debt-to-Equity Ratio:
- Senores Pharmaceuticals: 1.22 as of March 31, 2024
- Peers: Specific ratios not provided, but industry average is typically between 0.5 to 1.5
- R&D Expenditure:
- Senores Pharmaceuticals: Specific R&D expenditure not disclosed
- Peers: Typically spend 4-8% of revenue on R&D
Senores Pharmaceuticals IPO Growth Projections
• Global pharmaceutical market forecast:
- Expected to reach USD 2,251 billion by 2028
- Growing at a CAGR of 6.6%
- Positive outlook for companies like Senores Pharmaceuticals
• India’s pharmaceutical export trends:
- Formulation exports projected to reach USD 37.5 billion by 2028
- Senores well-positioned as an Indian company with global presence
• Senores’ recent financial performance:
- Fiscal 2024 revenue grew 507% to Rs 214.52 crore
- Profit after tax increased 288% to Rs 32.71 crore
- Suggests strong potential for continued growth
• Strategic market focus:
- Emphasis on regulated markets (US, Canada)
- Presence in 43 emerging markets
- Diverse foundation helps navigate regional fluctuations
• Factors influencing future performance:
- Market dynamics
- Competitive pressures
- Execution of company strategies
• Growth outlook:
- Overall promising, but specific rates uncertain
- Depends on leveraging industry trends
- Maintaining growth momentum crucial
Risk Factors
Investors should carefully consider the risk factors outlined in the RHP before making an investment decision.
Senores Pharmaceuticals IPO Lead Managers and Registrar
Book Running Lead Managers:
- Equirus Capital Private Limited,
- Ambit Private Limited, and
- Nuvama Wealth Management Limited
- Registrar: Link Intime India Private Limited
FAQ’s
- What is the size of the Senores Pharmaceuticals IPO?
A: The Senores Pharmaceuticals IPO consists of a fresh issue of equity shares aggregating up to ₹5,000 million and an offer for sale of up to 2,100,000 equity shares by existing shareholders. - Who are the promoters of Senores Pharmaceuticals?
A: The promoters of Senores Pharmaceuticals are Swapnil Jatinbhai Shah and Ashokkumar Vijaysinh Barot. - What are the main business segments of Senores Pharmaceuticals?
A: Senores Pharmaceuticals operates in four main segments: Regulated Markets (US, Canada, UK), Emerging Markets, Critical Care Injectables in India, and API manufacturing for domestic and SAARC markets. - How will Senores Pharmaceuticals use the IPO proceeds?
A: The IPO proceeds will be used for investing in subsidiary Havix for capital expenditure, repaying borrowings, funding working capital requirements, and potential acquisitions and strategic initiatives. - What is Senores Pharmaceuticals’ strategy in the US market?
A: Senores focuses on developing and commercializing specialty and complex niche products in the mid-market range for the US market, with 19 ANDA approvals as of March 31, 2024. - How many countries does Senores Pharmaceuticals operate in for its Emerging Markets business?
A: Senores Pharmaceuticals has a presence in 43 countries for its Emerging Markets business. - Who are the book running lead managers for the Senores Pharmaceuticals IPO?
A: The book running lead managers are Equirus Capital Private Limited, Ambit Private Limited, and Nuvama Wealth Management Limited. - Is there an employee reservation portion in the Senores Pharmaceuticals IPO?
A: Yes, there is an employee reservation portion of up to 75,000 equity shares in the Senores Pharmaceuticals IPO. - What was Senores Pharmaceuticals’ revenue and profit for the fiscal year 2024?
A: For the fiscal year 2024, Senores Pharmaceuticals reported a total income of ₹2,173.42 million and a net profit of ₹327.08 million. - On which stock exchanges will Senores Pharmaceuticals shares be listed?
A: Senores Pharmaceuticals shares are proposed to be listed on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange of India).
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