Senores Pharmaceuticals Ltd, an Ahmedabad-based pharmaceutical firm, announced that it raised nearly Rs 261 crore from anchor investors before the public subscription of its initial public offering (IPO). With a focus on specialty and complex pharmaceutical products, the company is poised to leverage this capital for strategic expansion. Anchor investors include major mutual funds and insurance companies, signaling strong confidence in the company’s market potential.

Anchor Allocation Attracts Top-Tier Investors

High-profile anchor investors: The anchor round saw participation from prominent institutions like ICICI Prudential Mutual Fund, Mahindra Manulife Mutual Fund, Aditya Birla Sun Life Insurance Company, SBI General Insurance Company, and Troo Capital.

Details of allocation: Senores Pharmaceuticals allotted approximately 66.66 lakh equity shares to 20 funds at Rs 391 per share, aggregating a total transaction size of Rs 260.63 crore, according to a BSE filing.

IPO Structure and Price Details

IPO size and price band: The Rs 582-crore IPO, open from December 20 to December 24, has a price band of Rs 668-704 per share.

Fresh issue and OFS breakdown: The IPO consists of a fresh issuance of equity shares worth Rs 500 crore and an Offer for Sale (OFS) of up to 21 lakh shares valued at Rs 82.11 crore, offered by promoters and other shareholders.

Employee reservation: The public issue includes a reservation of 75,000 shares for employees, underscoring the company's commitment to its workforce.

Utilization of IPO Proceeds

Strategic allocations: The funds raised through the IPO will be used for:

Establishing a manufacturing facility for sterile injections at its Atlanta facility.
Funding working capital requirements for the company and its subsidiaries.
Supporting inorganic growth through acquisitions and strategic initiatives.
Debt repayment and general corporate purposes.
These measures align with Senores Pharmaceuticals' strategic vision to enhance its production capabilities and expand its market presence.

Investor Allocation and Bidding Details

Allocation breakdown: Of the total IPO, 75% is reserved for qualified institutional buyers (QIBs), 15% for non-institutional buyers, and 10% for retail investors.

Bidding specifics: Investors can bid for a minimum of 38 shares and in multiples of 38 shares thereafter, offering flexibility for participation.

Senores Pharmaceuticals: A Leader in Specialty Pharmaceuticals

Product portfolio: The company focuses on identifying, developing, and manufacturing specialty, underserved, and complex pharmaceutical products. It has established itself as a preferred partner for customers in key therapeutic segments, including antibiotics, anti-bacterial, anti-fungal, and blood-line medications.

R&D infrastructure: As of March 2024, Senores operates three research and development (R&D) facilities in India and the US. It is also consolidating these into a dedicated facility in Ahmedabad to streamline innovation and product development.

Impressive Financial Growth

Revenue surge: The company reported a dramatic increase in revenue from operations, rising to Rs 214.52 crore in FY24 compared to Rs 35.34 crore in the previous fiscal year.

Profitability boost: Profit after tax jumped to Rs 32.71 crore in FY24, up from Rs 8.43 crore in FY23, reflecting robust financial health and operational efficiency.

Strategic Management and Market Positioning

Experienced leadership: Senores Pharmaceuticals is led by a team with deep expertise in the pharmaceutical sector, enabling it to capture opportunities in underserved markets effectively.

Global alliances: Its ability to cater to niche therapeutic areas has positioned the company as a reliable partner for global clients.

IPO Book-Runners and Listing Details

Lead managers: Equirus Capital, Ambit, and Nuvama Wealth Management are the book-running lead managers for the issue, ensuring a smooth IPO process.

Listing exchanges: The equity shares are proposed to be listed on both the BSE and NSE, increasing visibility and accessibility for investors.