Senores Pharmaceuticals Raises Rs 261 Crore from Anchor Investors Ahead of Upcoming IPO

Senores Pharmaceuticals Ltd announced on Thursday that it has raised approximately Rs 261 crore from anchor investors before its initial public offering (IPO) opens for public subscription. The anchor investors include ICICI Prudential Mutual Fund, Mahindra Manulife Mutual Fund, Aditya Birla Sun Life Insurance Company, SBI General Insurance Company, and Troo Capital, as per a circular on the BSE website.

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The company has allocated around 66.66 lakh equity shares to 20 funds at Rs 391 each, totalling Rs 260.63 crore. The IPO, valued at Rs 582 crore, will be available for public subscription from December 20 to December 24. The price range is set between Rs 668 and Rs 704 per share.

IPO Structure and Allocation

Based in Ahmedabad, the IPO consists of a fresh issue of shares worth Rs 500 crore and an offer for sale (OFS) of up to 21 lakh shares valued at Rs 82.11 crore by promoters and other selling shareholders at the upper price band. Additionally, there is a reservation of 75,000 shares for employees.

The funds from the fresh issue will be used to establish a manufacturing facility for sterile injections in Atlanta, meet working capital needs, support acquisitions and strategic initiatives, and pay off debt. A portion will also be allocated for general corporate purposes.

Investor Allocation and Bidding Details

Seventy-five percent of the issue is reserved for qualified institutional buyers, while non-institutional buyers have a 15 percent allocation. Retail investors are allotted the remaining 10 percent. Investors can bid for a minimum of 38 shares and in multiples thereafter.

Senores Pharmaceuticals focuses on developing and manufacturing specialty pharmaceutical products that are complex or underserved. It aims to be a preferred partner for select customers with its diverse product range.

Product Range and R&D Facilities

The company offers products in key therapeutic areas such as antibiotics, anti-bacterial, anti-fungal, and blood line treatments. As of March 2024, Senores Pharma had three R&D facilities in India and the US. It plans to consolidate these into one dedicated facility in Ahmedabad.

Financially, Senores Pharma's revenue from operations surged to Rs 214.52 crore in FY24 from Rs 35.34 crore the previous year. Profit after tax also increased significantly to Rs 32.71 crore from Rs 8.43 crore.

Equirus Capital, Ambit, and Nuvama Wealth Management are managing the book-running lead for the issue. The equity shares are expected to be listed on both the BSE and NSE exchanges.