Senores Pharmaceuticals Gears Up for IPO, Files Draft Documents with SEBI

Ahmedabad-headquartered Senores Pharmaceuticals has submitted its draft papers to the Securities and Exchange Board of India (SEBI) for launching an initial public offering (IPO).

This IPO will consist of a mix of fresh equity issues and an offer-for-sale (OFS). The company plans to issue new equity shares worth ₹500 crore, while existing shareholders will offer 27 lakh shares as part of the OFS.

Currently, the promoters of Senores Pharma hold 66.67% of the company’s shares, with the remaining held by public shareholders. In the OFS, promoters Sangeeta Mukur Barot, Ashokkumar Vijaysinh Barot, and Swapnil Jatinbhai Shah are set to offload 17 lakh shares, while another significant shareholder, Prakash M. Sanghvi, plans to sell 10 lakh shares.

Prior to filing its RHP, Senores Pharma is considering a ₹100 crore pre-IPO placement to strengthen its financial position, which may potentially reduce the fresh equity issue size. The proceeds from the IPO will be allocated towards key projects, including working capital needs, setting up a sterile injectable manufacturing unit in Atlanta, and supporting inorganic growth. A portion of the funds will also be used to reduce existing debt.

As of the end of 2024, Senores Pharma has successfully introduced 21 products to the US and Canadian markets and has secured approvals for 19 abbreviated new drug applications (ANDAs). The company has also filed six ANDAs, has six products in stability testing, three close to exhibit readiness, and two in the exhibit phase, showcasing steady product portfolio expansion.

Financially, the company saw a significant four-fold surge in net profit, which rose to ₹32.7 crore in FY24 from ₹8.4 crore in FY23, driven by robust revenue and tax write-backs despite pressure on operating margins due to higher input costs. Revenue surged six times, reaching ₹214.5 crore in FY24 compared to ₹35.3 crore in FY23, though EBITDA margins declined to 19.4% in FY24 from 35.8% in FY23.

Comparing FY24 performance with previous years is challenging due to the impact of acquiring Havix and RPPL.

The IPO is being managed by Nuvama Wealth Management, Equirus Capital, and Ambit.

Senores Pharmaceuticals’ decision to go public reflects its strategic vision for growth and global expansion, particularly in emerging markets.