Fri Dec 20 10:13:20 UTC 2024: **Senores Pharmaceuticals IPO Oversubscribed on Day One**

AHMEDABAD, INDIA – Senores Pharmaceuticals Ltd.’s initial public offering (IPO), launched on December 20th, has seen strong initial demand. The IPO, which closes on December 24th, offers shares priced between ₹668 and ₹704. By 1:45 PM IST on the first day, the IPO was 99% subscribed, with bids for 84,56,21 shares against 85,34,681 shares on offer.

The company, which focuses on specialty pharmaceuticals, had already raised ₹261 crore from anchor investors including prominent mutual funds and insurance companies such as ICICI Prudential Mutual Fund and Aditya Birla Sun Life Insurance Company. The IPO allocation is split 75% for qualified institutional buyers (QIBs), 15% for non-institutional investors, and 10% for retail investors. Retail investors alone oversubscribed their portion by 4.24 times. The employee portion was also oversubscribed at 1.18 times. The non-institutional investor quota was 78% subscribed.

The IPO includes a fresh issue of ₹500 crore and an offer for sale (OFS) of up to 21 lakh shares (approximately ₹82.11 crore). Proceeds from the fresh issue will fund a new sterile injection manufacturing facility in Atlanta, working capital, acquisitions, debt repayment, and general corporate purposes.

Senores Pharmaceuticals reported a significant increase in operational revenue in FY24 to ₹214.52 crore, compared to ₹35.34 crore the previous year, and profit after tax rose to ₹32.71 crore from ₹8.43 crore. The company operates three R&D centers and is consolidating them into a single facility in Ahmedabad.

Analysts cite the strong demand for pharmaceuticals and a favorable regulatory landscape as contributing factors to the IPO’s success. While the IPO’s valuation appears reasonable based on industry comparisons, continued strong financial performance is crucial.

The grey market premium (GMP) for Senores Pharmaceuticals shares currently stands at ₹150, suggesting a potential listing price significantly higher than the IPO price. However, investors are cautioned to consult financial advisors before making investment decisions. Equirus Capital, Ambit, and Nuvama Wealth Management are the lead managers for the issue.

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