New Delhi: Senores Pharmaceuticals Ltd has submitted initial documents to Sebi to raise funds through an IPO. The IPO from the Ahmedabad company includes a new share issuance of Rs 500 crore and an offer for sale (OFS) of up to 27 lakh equity shares by promoters and other selling shareholders, as stated in the draft red herring prospectus (DRHP).
The deal also involves setting aside a subscription for qualified employees. The pharmaceutical company is contemplating raising up to Rs 100 crore through pre-IPO placement. Once the placement is finalized, the size of the new issue will be diminished. The funds raised from the new offering will be used to establish a production facility for sterile injections in Atlanta, finance the operational needs of the company and its affiliates, facilitate growth through acquisitions and strategic actions, and pay off debts. Additionally, some of the funds will be allocated for general business needs.
Senores Pharmaceuticals specializes in the identification, development, and production of a variety of specialty and intricate pharmaceutical products. As of March this year, the company had introduced 54 products in key areas of therapeutics, such as antibiotics, anti-bacterial, anti-fungal, and blood line.
By March 2024, the company operated three R&D sites in India and the US, and was working on merging them into a single dedicated facility in Ahmedabad. The company is currently working on increasing its Atlanta facility through a brownfield project and enhancing its R&D facilities with more laboratory equipment for future growth. Also, it intends to set up a niche injectables manufacturing facility in the US to carry out manufacturing and marketing of high value-added injectables for the US market.
Senora Pharma has received approvals for 19 ANDAs (abbreviated new drug applications) and has commercialised 21 products in the US and Canada markets, as of March 31, 2024. As of May 31, 2024, the pharma firm identified and filed 6 ANDAs and it had six products in stability and two products for ongoing exhibits. Additionally, three products are ready for exhibit, and 34 ANDAs are under development.
On the financial front, Senores Pharma's revenue from operations increased multifold to Rs 214.52 crore in FY24 from Rs 35.34 crore in FY23, while its profit after tax rose to Rs 32.71 crore in FY24 from Rs 8.43 crore in FY23. Equirus Capital, Ambit, and Nuvama Wealth Management are the book-running lead managers to the issue. The equity shares are proposed to be listed on the BSE and the NSE.
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