Senores Pharmaceuticals IPO Day 2: Check Subscription Status, GMP Today
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Unlisted shares of Senores Pharmaceuticals Ltd are currently trading at Rs 611 in the grey market, reflecting a premium of Rs 220 (56.27%) over the upper price band of Rs 391, indicating a strong listing gain.
Senores Pharmaceuticals IPO.
Senores Pharmaceuticals IPO: The initial public offering of Senores Pharmaceuticals Ltd, which was opened for public subscription on Friday, has received a decent subscription so far. The price band of the IPO has been fixed in the range of Rs 230 to Rs 243 per share. Till 4:04 pm on the final day of bidding on Monday, the IPO received bids for 10,03,74,416 shares as against the 81,46,998 shares on offer, resulting in a subscription rate of 12.32 times.
So far, the retail category has received a 33.23 times subscription, while the non-institutional category (NII) got a 22.04 times subscription. The QIB category has been subscribed by 36 per cent.
The Rs 582-crore IPO is a combination of fresh issuance of shares worth Rs 500 crore and an offer for sale (OFS) of up to 21 lakh shares valued Rs 82.11 crore by promoters and other selling shareholders.
The IPO was opened for public subscription on Friday, December 20.
Senores Pharmaceuticals IPO GMP Today
As per market observers, the unlisted shares of Senores Pharmaceuticals Ltd are currently trading at Rs 611 in the grey market, reflecting a premium of Rs 220 (56.27%) over the upper price band of Rs 391. This indicates a strong listing gains for investors on December 30.
Senores Pharmaceuticals IPO: Key Dates
The IPO will be opened on Friday (December 20) and closed on Tuesday (December 24). Its allotment will likely be finalised on December 26. Finally, the IPO listing is scheduled to take place both BSE and NSE on December 30.
Senores Pharmaceuticals IPO: Price & Lot Size
The price band of the IPO has been fixed at Rs 372 to Rs 391 per share.
The minimum lot size for an application is 38. The minimum amount of investment required by retail investors is Rs 14,858. The minimum lot size investment for small NII is 14 lots (532 shares), amounting to Rs 2,08,012, and for big NII, it is 68 lots (2,584 shares), amounting to Rs 10,10,344.
Senores Pharmaceuticals IPO: Analysts’ Recommendations
Giving the ‘subscribe for long term’ rating to the Senores Pharma IPO, brokerage firm Bajaj Broking in its IPO note said, “The company’s strong focus on research and development is evident from its dedicated R&D facilities in India and the US. This emphasis on innovation has resulted in a robust pipeline of new products, further enhancing its competitive edge. Additionally, Senores Pharmaceuticals has established strategic partnerships with distributors and hospitals across various states in India, increasing its market reach and penetration.”
In terms of valuation, Senores Pharmaceuticals is wellpositioned within the growing pharmaceutical industry, especially post-pandemic. The demand for pharmaceuticals remains high, and the regulatory environment in key markets is favourable, it added.
“By comparing valuation metrics such as the P/E ratio, EV/EBITDA, and price-to-sales ratio with industry peers, the IPO appears to be fairly valued, assuming the company’s financial health and market positioning remain strong,” Bajaj Broking stated.
Senores Pharmaceuticals IPO: More Details
The Ahmedabad-based company’s IPO is a combination of fresh issuance of shares worth Rs 500 crore and an offer for sale (OFS) of up to 21 lakh shares valued Rs 82.11 crore, by promoters and other selling shareholders, at the upper end of the price band.
The public issue includes a reservation of 75,000 shares for employees.
Proceeds from the fresh issue will be utilised for setting up a manufacturing facility for production of sterile injections in its Atlanta facility; funding the working capital requirements of the company and its subsidiaries, supporting inorganic growth through acquisition and other strategic initiatives and payment of debt. Besides, a portion will be used for general corporate purposes.
The company said 75 per cent of the issue has been reserved for qualified institutional buyers, 15 per cent for non-institutional buyers and the remaining 10 per cent for retail investors.
Senores Pharmaceuticals has secured nearly Rs 261 crore from anchor investors, ahead of its IPO.
Senores Pharmaceuticals specialises in identifying, developing, and manufacturing a wide array of specialty, underserved, and complex pharmaceutical products, positioning itself as a preferred partner for select customers. The company has several products in major therapeutic segments, including antibiotics, anti-bacterial, anti-fungal, and blood line.
As of March 2024, the company had three 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.
On the financial front, Senores Pharma’s revenue from operations increased multifold to Rs 214.52 crore in FY24 from Rs 35.34 crore a year ago and profit after tax climbed to Rs 32.71 crore from Rs 8.43 crore.
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.
