Senores Pharmaceuticals, a rapidly growing global pharmaceutical company, is set to make its debut on the stock market with its upcoming IPO. Founded in 2017, the company has established a solid presence in key regulated markets, including the United States, Canada, and the UK, as well as expanding its footprint across emerging markets.
The IPO aims to raise funds for various strategic initiatives, including the expansion of its manufacturing capabilities and investment in subsidiaries to drive further growth. With a portfolio of critical-care injectables and active pharmaceutical ingredients (APIs), Senores Pharmaceuticals has gained recognition for its commitment to quality and innovation.
As the company focuses on developing and marketing a wide range of pharmaceutical products, from antibiotics to pain management solutions, it has built strong partnerships with leading pharmaceutical companies and distributors globally.
In this blog, we will dive into the details of Senores Pharmaceuticals IPO, providing you with an overview of its financial performance, strengths, risks, and the prospects for investors looking to participate in this offering.
Senores Pharmaceuticals IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 20 Dec ‘24 – 24 Dec ‘24 | ₹14,136 | 38 | ₹372 – ₹391 |
Issue Size: ₹582.11 Cr
Also Read: Senores Pharmaceuticals IPO Details: A Comprehensive Overview
About Senores Pharmaceuticals
Senores Pharmaceuticals is a global pharmaceutical company engaged in the development and manufacturing of products for regulated markets, primarily in the United States, Canada, and the United Kingdom. The company operates across a range of therapeutic areas and dosage forms, with commercialised products such as Acetaminophen Butalbital, Ketorolac, Mexiletine Hydrochloride, and Diclofenac Potassium. The company also provides Contract Development and Manufacturing Organisation (CDMO) and Contract Manufacturing Organisation (CMO) services through its Atlanta facility.
Founded: 2017
Managing Director: Mr. Swapnil Jatinbhai Shah
Parent Organization: Senores Pharmaceuticals Ltd
Strengths
- Strong presence in 43 countries, focusing on emerging markets.
- Focus on quality and complex molecules, with a diversified product pipeline.
- Established partnerships with global pharmaceutical companies in regulated markets.
- Commercialized products in the US and Canadian markets with approvals for 19 ANDAs.
- Manufacturing facilities with WHO-GMP approval, producing a variety of dosage forms.
- Solid financial performance, with revenue and profit growth over the past years.
Risks
- Heavy reliance on third-party partners and distributors for revenue.
- Limited customer base and dependence on a few key customers for significant revenue.
- Exposure to fluctuations in demand from the US market.
- Ongoing legal proceedings could impact business prospects.
- Operational risks due to equipment breakdowns or regional adverse developments in Gujarat.
- High borrowings of ₹298.95 crore and contingent liabilities of ₹118.70 crore.
Also See IPO GMP and Subscription
About Senores Pharmaceuticals Limited
Incorporated in December 2017, Senores Pharmaceuticals develops and manufactures pharmaceutical products primarily for the regulated markets of the US, Canada, and the UK, while also focusing on emerging markets. Its portfolio includes antibiotics, antifungals, and other critical treatments.
The company operates three R&D facilities in India and the US and has seen a significant rise in both revenue (457%) and profit after tax (PAT) (288%) in FY24 compared to FY23.
Objectives of the IPO
- Investment in Havix Group Inc. for sterile injections manufacturing in Atlanta.
- Repayment of borrowings.
- Funding working capital requirements of the company and subsidiaries.
- Strategic growth initiatives and acquisitions.
Senores Pharmaceuticals IPO Review by Dilip Davda
Recommendation: May Apply
Senores Pharmaceuticals has demonstrated solid growth in both revenue and profit, with strong relationships with marquee clients. However, the significant increase in financial performance in FY24 raises concerns about the pricing of the issue. Long-term investors may consider applying for the IPO, based on its performance.
Senores Pharmaceuticals IPO Recommendations
| Reviewer | Recommendation |
|---|---|
| Aditya Birla Ltd | Subscribe |
| Anand Rathi | Subscribe |
| BP Equities (BP Wealth) | Subscribe |
| Canara Bank Securities Ltd | Subscribe |
| Capital Market | Neutral |
| Dilip Davda | May Apply |
| SBICAP Securities Limited | May Apply |
| Ventura Securities Limited | Subscribe |
62.5% of financial institutions recommend subscribing to the IPO.
Senores Pharmaceuticals IPO Registrar
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: senorespharma.ipo@linkintime.co.in
Website: Link Intime
Senores Pharmaceuticals IPO Details
| IPO Open Date | 20th Dec 2024 |
|---|---|
| IPO Close Date | 24th Dec 2024 |
| Issue Size | ₹582.11 Cr |
| Issue Price | ₹372.00-391.00 |
| Market Lot | 38 Shares |
Conclusion
Senores Pharmaceuticals presents a promising opportunity with strong growth potential, especially in regulated markets like the US, Canada, and the UK. The company has shown significant improvement in its financials, with a remarkable increase in both revenue and profit. Its strategic partnerships and manufacturing capabilities provide a solid foundation for long-term growth.
However, the IPO is priced aggressively, and the sudden boost in financial performance raises some concerns. Investors looking for long-term growth might consider applying, but caution is advised due to the risks associated with the company’s dependence on a few key customers, its reliance on third-party partners, and ongoing legal matters.
Overall, for well-informed investors with a long-term perspective, Senores Pharmaceuticals could be an attractive option, especially considering its focus on emerging markets and robust R&D capabilities.