Ahmedabad-based Senores Pharmaceuticals has filed the draft red herring prospectus (DRHP) with market regulator SEBI to raise funds via the initial public offering (IPO) route.
The IPO will be a mix of fresh issuance of Rs 500 crore and an offer for sale of up to 27 lakh equity shares by the promoters and other selling shareholders and will also include a reservation for a subscription by eligible employees.
The IPO consists of a fresh issue of shares worth Rs 617.69 crore and an offer for sale (OFS) of up to 1.42 crore shares with a face value of Rs 5 per share.
Read More: Dividend Stock: Smallcap share announces Rs 40 cash reward; check record date
Under the OFS, up to 8.5 lakh equity shares by Swapnil Jatinbhai Shah, up to 5.5 lakh equity shares by Ashokkumar Vijaysinh Barot, up to 3 lakh equity shares by Sangeeta Mukur Barot and up to 10 lakh by Prakash M Sanghvi will be offloaded.
The equity shares are proposed to be listed on BSE and NSE.
The company has informed that they, in consultation with the book-running lead managers, may consider an issue of specified securities, aggregating to Rs 100 crores as Pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.
Read More: Ola Electric IPO to open soon: 10 things to know before subscribing
The offer is being made through the book-building process, wherein not less than 75% of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the net offer shall be available for allocation to non-institutional investors, and not more than 10% of the net offer shall be available for allocation to retail individual investors.
The proceeds from its fresh issuance to the extent of Rs 107 crore will be utilized for funding the capital expenditure requirements in the company’s subsidiary, Havix, for setting up a manufacturing facility for the production of sterile injections in its Atlanta facility while about Rs 93.7 crore for would be utilized for the re-payment/pre-payment of certain borrowings availed by the company.
Additionally, Rs 102.74 crore are proposed to be used for funding the working capital requirements of the company and funding inorganic growth through acquisition and other strategic initiatives and general corporate purposes.
Read More: Trom Industries IPO Receives 70.16x Subscription on Day 3 So Far, Check GMP Today
Senores Pharmaceuticals specializes in identifying, developing, and manufacturing a wide array of specialty, underserved, and complex pharmaceutical products, positioning itself as a preferred partner for select customers.
Utilizing data analytics, research, market assessment, and experienced management, the company strategically selects commercially underserved molecules and introduces it in both regulated markets mainly US and Canada and emerging markets across 43 countries.
As of March 31, 2024, Senores Pharmaceuticals had three dedicated R&D facilities in India and the US and is in the process of consolidating its R&D facilities into one proposed dedicated facility in Ahmedabad.
Senores Pharmaceuticals’ revenue from operations increased by 507.08% to Rs 214.52 crore in fiscal 2024 from Rs 35.34 crore in the previous year, primarily due to an increase in the sale of products, sale of services, and other operating income. The Profit after tax increased by 287.84% from Rs 8.43 crore in fiscal 2023 to Rs 32.71 crore in fiscal 2024.
Equirus Capital Private Limited, Ambit Private Limited and Nuvama Wealth Management Limited are the book-running lead managers and Link Intime India Private Limited is the registrar of the offer
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
