Senores Pharmaceuticals IPO - Date, GMP, Price & Details

Senores Pharmaceuticals IPO - Complete Overview 

Senores Pharmaceuticals IPO a Mainboard IPO is a book-built issue of Rs.582.11 Cr (1,48,87,723 Shares) by Senores Pharmaceuticals Limited that was founded in December 2017. The company manufactures and markets a diverse set of pharmaceutical products primarily focusing on regulated markets-the USA, Canada, and the UK-with some emerging markets.

Some of the products of the company include Amphetamine Sulfate Tablets, Hydroychloroquine Sulfate Tablets, Ketoconazole Tablets, Butalbital, Acetaminophen and Caffeine Capsules, Mexiletine Hydrochloride Capsules, Ketorolac Tromethamine Tablets, Diclofenac Potassium Tablets, Diclofenac Potassium Tablets, Nicardipine Hydrochloride Capsules, Escitalopram Tablets, Prochlorperazine Maleate Tablets USP, Terazosin Capsules USP, Morphine Sulfate Tablets, Methadone Hydrochloride Tablets, Cyclobenzaprine Hydrochloride Tablets, Irbesartan Tablets, Risperidone Tablets Topiramate Capsules, and Ivermectin Tablets for regulated markets.

The company has launched 55 products in key therapeutic areas such as antibiotics and anti-fungal treatment by September 30, 2024. It has forged ties with distributors and hospitals across several states in India.

On September 30, 2024, the company owns three R&D facilities exclusively in India and the US. The company operates in 43 Emerging Markets and manufactures critical care injectables and APIs.

This new IPO is to be launched on 20 December 2024, and the initial public offering of this upcoming IPO will end on 24 December 2024.

 

Senores Pharmaceuticals IPO Details

The Rs.582.11 Crore IPO comprises a combination of a fresh issue of 1.28 Cr Shares (Rs.500 Cr) and an offer for sale (OFS) of 0.21 Cr Shares (Rs.82.11 Cr). The IPO listing date is on December 30, 2024. Senores Pharmaceuticals IPO price is Rs.372 to Rs.391. 

If you want to apply for the IPO, Click Here to open a Demat Account.

Company Financial

The company’s revenue grew by 457% and PAT increased by 288% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

 

Cash Flows

The cash flows for various activities are shown below:

(Amount in millions)

 

Business-wise Revenue Bifurcation

(Amount in millions)

Market-wise Revenue Bifurcation

(Amount in millions)

Model-wise Revenue Bifurcation

(Amount in millions)

(Source RHP)

 

The Objective of the Issue

• Investing in Havix Group, Inc., a subsidiary of Aavis Pharmaceuticals ("Havix"), to cover the necessary capital expenditures for establishing a sterile injection manufacturing plant in the Atlanta site.

• Full or partial repayment or prepayment of certain loans obtained by the business.

• Investment in the subsidiary, Havix, for the full or partial repayment or prepayment of specific loans obtained by the subsidiary.

• Financing the company's working cash needs.

• To finance their working capital needs, the subsidiaries Senores Pharmaceuticals Inc. ("SPI") and Ratnatris Pharmaceutical Private Limited ("Ratnatris") were invested.

• General Corporate Purposes.

 

Peers of Senores Pharmaceuticals Limited

 

Evaluation

The Senores Pharmaceuticals Limited IPO price band is between Rs.372 to Rs.391 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.13.67 from the last year, the resulting P/E ratio is 28.60x. 

Considering the weighted EPS of Rs.10.09 for the last three years, the P/E ratio is 38.75x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 38.84x.

In simple words, the P/E ratio of this IPO (28.60x), compared with the industry’s average P/E of 38.84x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths    

• This company markets its US FDA-approved manufacturing facility to the regulated markets in the US, Canada, and the UK.

• A very unique but brief portfolio of products developed for regulated markets.

• Long-term marketing contracts with pharmaceutical firms in regulated markets in the UK, Canada, and the US.

• Presence in emerging markets with a product portfolio that includes specialty or complex products.

• Strong R&D capabilities driving our differentiated portfolio of products.

• Management Experience.

 

IPO’s Weaknesses 

• Unreliability from Third-Party Marketing Partners: The business has been solely dependent on a long-term marketing agreement with third-party distributors for sales in regulated markets. Such a loss or reduction of demand could result in adverse effects or competitive pressure.

• Compliance with Mandated Regulatory Standards: Non-compliance with the quality and technical specifications required by customers or regulators could lead to loss of business, order cancellations, and warranty claims.

• Dependency on a Limited Customer Base and Suppliers: In this case, only a few customers represent most of the revenue sources. Any contract termination or movement to competitors directly impacts the bottom line.

• Foreign Currency Risk: Changes in the exchange rate have an adverse impact, notably in the increase and fall in the exchange rates of the Indian Rupee against the USD. The lack of hedging arrangements further aggravates the risk.

• Economic and Political Instabilities: Many factors, including global recessionary trends, geopolitical conflicts, and a degree of political instability in the domestic market, jumbled operations and create unfriendly business scenarios.

 

Senores Pharmaceuticals IPO GMP

Senores Pharmaceuticals IPO GMP today is Rs.0 as of 18 December 2024. With the price band of Rs.391, the estimated Senores IPO listing price is Rs.391 while writing this information.

Senores IPO Timetable (Tentative)

The IPO date is from 20 December to 24 December, with IPO allotment on 26 December, and refund initiation on 27 December. The IPO listing date is on 30 December 2024.

 

IPO Other Details 

Senores Pharma IPO with a face value of Rs.10 per Share, the IPO size is 1,48,87,723 Shares (Rs.582.11 Cr) and it will be listed at BSE and NSE.

Senores Pharma IPO Lot Size

The Senores IPO allows retail investors to invest in a minimum and maximum of 1 Lot (38 Shares) amounting to Rs.14,858 and 13 Lots (494 Shares) amounting to Rs.1,93,154 respectively, while for HNI investors, the minimum Lot is 14 (532 Shares) amounting to Rs.2,08,012.

IPO Reservation

Promoters and Management of Senores Pharmaceuticals Ltd. 

• Swapnil Jatinbhai Shah

• Ashokkumar Vijaysinh Barot.
  
  

IPO Lead Managers

• Equirus Capital Private Limited

• Ambit Private Limited

• Nuvama Wealth Management Limited.
  
  

Dividend Policy

The company has not paid any dividend up to the date of the RHP.

Conclusion

Senores Pharmaceuticals IPO gives a growth story with a risk. Some of its strong features are a strong presence in regulated markets, robust financial growth, and R&D capabilities. However, it has risks such as reliance on third-party distributors and regulatory compliance. All in all, the IPO looks fairly valued and is probably the one for investors scouring for opportunities in the pharmaceutical sector.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

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DISCLAIMER: This is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.

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