Senores Pharmaceuticals IPO: Price Band, Financials, Key Risks, GMP And More — All You Need To Know

Senores Pharmaceuticals Ltd.'s Rs 582.11-crore initial public offering, which is scheduled to open on Friday, consists of a fresh issue of Rs 500 crore and an offer for sale of Rs 82.11 crore.

The price band for the IPO has been set between Rs 372 and Rs 391 per share.

Promoters divesting shares in the OFS include Swapnil Jatinbhai Shah, Ashokkumar Vijaysinh Barot and Sangeeta Mukur Barot

• Issue opens: Dec. 20.

• Issue closes: Dec. 24.

• Issue price: Rs 372 to Rs 391 per share.

• Offer for sale: Rs 82.11crore.

• Fresh issue: Rs 500 crore.

• Total issue size: Rs 582.11crore.

• Lot size: Minimum 38 shares.

• Investment in one of its subsidiaries, Havix Group, Inc. which does business under the Aavis Pharmaceuticals name, to fund capital expenditure requirements for setting up a manufacturing facility for the production of sterile injections in its Atlanta facility.

• Re-payment or pre-payment, in full or in part, of certain borrowings.

• Investment in company's subsidiary, Havix, for re-payment/pre-payment in full or in part, of certain borrowings availed by the subsidiary.

• Funding the working capital requirements.

• Investment in company's subsidiaries Senores Pharmaceuticals Inc. and Ratnatris Pharmaceutical Pvt. to fund their working capital requirements.

• Funding inorganic growth through acquisition and other strategic initiatives and general corporate purposes.

Senores Pharmaceuticals is a global research driven pharmaceutical engaged in developing and manufacturing a wide range of generic pharmaceutical products in the B2B segment, predominantly for the regulated markets across various therapeutic areas and dosage forms. Its regulated markets business is primarily focused on US, Canada, and United Kingdom.

Company has adopted a strategy of identifying, developing and commercialising specialty and complex niche products in the mid-market range and as of March 31, 2024, they have received approvals for 19 ANDAs.

It develops and manufacture generic pharmaceutical products across various therapeutic areas for emerging markets in the B2B segment, having a presence across 43 countries.

The company also operate a critical care injectables business, supplying critical care injectables to hospitals across India through distributors, and manufactures APIs for the domestic market and SAARC countries.

• The company's business relies on product sales and regulated market growth; any decline or inability to adapt could harm operations and finances.

• A significant share of company's revenue comes from the US; reduced demand there could impact its business and finances.

• Company's reliance on limited suppliers, including sole suppliers for some APIs in the US, could adversely affect their business and finances.

• Loss or reduced demand from third-party marketing partners or distributors could harm company's business and financial performance.

Senores Pharmaceuticals IPO's last GMP is Rs 150 as of 2:59 p.m. on Dec. 19, according to InvestorGain. This implies shares of the company will likely list at Rs 541 apiece, indicating 38.36% gain over the upper limit of the price band.

It is important to note that GMP or grey market price is not an official price quote for the stock and is based on speculation.