| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 372 to ₹ 391 | 38 | 20th Dec, 2024 – 24th Dec, 2024 | ₹ 582.11 Cr |
About Senores Pharmaceuticals Ltd IPO
Senores Pharmaceuticals Limited is a global research-driven pharmaceutical company focused on developing and manufacturing a wide range of pharmaceutical products for the regulated markets of the US, Canada, and the United Kingdom across various therapeutic areas and dosage forms, with a presence in emerging markets. The company’s strength lies in identifying, developing and manufacturing a diverse range of specialty, underpenetrated and complex pharmaceutical products, establishing it as a preferred partner to specific customers. Through data analytics, research, market assessment and experienced management, they strategically identify commercially underpenetrated molecules to launch products in regulated and emerging markets. The company leverages R&D capabilities to develop and manufacture a portfolio of differentiated complex pharmaceutical products. Their focus on quality and ability to identify specialty and complex molecules has resulted in a pipeline of curated complex products spanning diverse dosage forms and therapeutic domains, demonstrated through partnerships in the regulated markets of the US, Canada and the United Kingdom with foreign and Indian pharmaceutical companies including Prasco LLC, Lannett Company Inc., Jubilant Cadista Pharmaceuticals Inc., Alkem Laboratories Limited, Sun Pharmaceuticals Industries Limited, Dr. Reddy’s Laboratories Inc. and Cipla USA Inc. The company’s business primarily focuses on the regulated markets of the US, Canada, and the United Kingdom. Senores also has a strong presence in emerging markets across 43 countries, manufacturing critical care injectables and APIs. This strategic approach underscores Senores Pharmaceuticals’ commitment to innovation and global growth, strengthening its position as a key player in the pharmaceutical industry.
Objective of the Senores Pharmaceuticals Ltd IPO
The company proposes to utilize net proceeds towards funding the following objects:
- Funding incremental working capital requirements of the company;
- Funding capital expenditure of the company; and
- General corporate purposes.
Rationale To Senores Pharmaceuticals Ltd IPO
Ability to leverage position in the regulated market through USFDA approval
Senores Pharmaceuticals manufactures products for the regulated markets of the US, Canada and the United Kingdom through a USFDA-approved OSD facility in Atlanta, US. The USFDA approval certifies the quality of manufacturing facilities and processes for consumption in a stringent regulated market such as the US, demonstrating a commitment to maintaining quality standards. This enforces belief in the product, thereby increasing the ability to scale, permits access to customers in specific markets in which the USFDA approval is a precondition, increases corporate goodwill and provides a competitive advantage. The company also has a CDMO business in the regulated markets catering to pharmaceutical companies, which is out of the Atlanta facility. The CDMO business model helps to plan and efficiently utilize manufacturing capacities and leverage product development capabilities in a viable manner. Leveraging on the strengths, abilities and track record as CDMO/ CMO partners in the regulated markets of the US, Canada and the United Kingdom, they are in the process of expanding their reach by entering into similar CDMO/ CMO partnerships in other regulated and semi regulated markets. This will ensure that the share of revenues on a consolidated basis from regulated markets will consistently grow and will also provide efficient utilization of the capacities created at the Atlanta facility. The company believes the ability to serve regulated markets through a USFDA-approved formulation manufacturing facility in the US provides a distinct competitive advantage. This approval not only ensures compliance with stringent regulatory standards but also enhances credibility and market reach, positioning favorably against competitors.
Various niche product portfolios built in a short span will aid financial performance
Senores Pharmaceuticals’ approach to product selection strategy for the regulated markets targets developing and manufacturing specialty, niche and difficult-to-manufacture complex products in the small to the mid-market range, where typically global pharmaceutical companies are not present, resulting in less competition. Complex products offer several advantages, as they are less affected by price erosion, ensuring more stable pricing and profitability over time. The complex products that are difficult to manufacture also face lower competition and, therefore, enjoy lower price erosion and higher market share (Source: F&S Report). Following this strategy, Senores Pharmaceuticals has 19 ANDAs approved by the US FDA and has commercialized 21 products in the US and Canadian markets. As of September 30, 2024, they have identified and filed six ANDAs; seven products are on stability, two have ongoing exhibits, three are ready for exhibit, and 33 ANDAs are under development. Additionally, four of the 19 ANDAs that have received approval are CGT-designated products. This exclusivity period allows companies to establish a foothold in the market and generate revenue without competition, providing a valuable market penetration and revenue growth opportunity. Senores Pharmaceuticals was the first company globally to identify CGT for Chlorzoxazone 250mg and launched the product in October 2021 with six months of exclusivity. During the first 11 months of CY23, Senores enjoyed a volume market share of 60.9% for this product. This product selection strategy has helped rapidly grow business in the regulated markets over three years since the launch of the first commercial product in April 2020, positioning the company for continued success and market penetration.
Valuation of Senores Pharmaceuticals Ltd IPO
Senores Pharmaceuticals is a global research-driven pharmaceutical company engaged in developing and manufacturing a wide range of pharmaceutical products predominantly for the regulated markets across various therapeutic areas and dosage forms, with a presence in emerging markets. The company is an R&D-driven company with a differentiated product portfolio across dosage forms, which has enabled the company to reach a range of target markets with a presence in the US, Canada and emerging markets. Senores Pharmaceuticals partners with many CDMO customers early in the drug development process, enabling them to expand relationships as molecules progress through the clinical phase and into commercial manufacturing. This results in sustained relationships with customers and a recurring revenue stream. The company has also entered into long-term marketing arrangements for a period ranging between 5-7 years with major generic pharmaceutical and marketing companies that operate in the regulated market. On the financial front, the company’s Rev/EBITDA/PAT grew at a CAGR of 289.1%/361.6%/474.5%, respectively, during the FY22-24 period. Senores Pharmaceuticals’ financial performance is driven by leveraging its leadership position in key therapeutic areas, established presence in regulated markets, inorganic growth through synergistic acquisitions, niche product portfolios built in a short span in emerging markets, and robust R&D capabilities, all of which have supported strong growth. The issue is valued at a P/E of 32.0x on the upper price band based on FY24 earnings, which is deemed fair. Therefore, we recommend a SUBSCRIBE rating for the issue.
What is the Senores Pharmaceuticals Ltd IPO?
Senores Pharmaceuticals IPO is a book built issue of Rs 582.11 crores. The issue is a combination of fresh issue of 1.28 crore shares aggregating to Rs 500.00 crores and offer for sale of 0.21 crore shares aggregating to Rs 82.11 crores. Login to your account now.
How to apply for the Senores Pharmaceuticals Ltd IPO through StoxBox?
To apply for the Carraro India Limited IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Senores Pharmaceuticals Ltd IPO open?
Senores Pharmaceuticals Ltd IPO is opening on 20th December 2024. Apply Now
What is the lot size of the Senores Pharmaceuticals Ltd IPO?
The Lot Size of Senores Pharmaceuticals Ltd IPO is 38 equity shares . Login to your account now
When is the Senores Pharmaceuticals Ltd IPO allotment date?
The allotment Date for Senores Pharmaceuticals Ltd IPO is 26th December 2024. Login to your account now.
When is the Senores Pharmaceuticals Ltd IPO listing date?
The listing Date for Senores Pharmaceuticals Ltd IPO is 30th December 2024. Login to your account now
What is the minimum investment required for the Senores Pharmaceuticals Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,858. Login to your account now
What is the maximum investment allowed for the Senores Pharmaceuticals Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 193,154. Login to your account now
What are the risks associated with investing in the Senores Pharmaceuticals Ltd IPO?
- The company depends on selling products through third-party marketing partners and distributors. The loss of one or more marketing partners or distributors, the deterioration of their financial condition or prospects, a reduction in their demand for products, or the inability to maintain and increase the number of arrangements for the marketing and distribution of products could adversely affect business, results of operations and financial conditions.
- The company’s business is dependent on the sale of products and continued growth of the regulated markets. A decrease in market growth for a product or failure to respond to changes in market conditions could adversely affect the business, results of operations, financial conditions, and cash flows.
- Manufacturing or quality control problems may damage the company’s reputation for high-quality production and expose it to potential litigation or other liabilities, which could negatively impact business prospects, results of operations, and financial conditions.
When will the Senores Pharmaceuticals Ltd IPO shares be credited to my Demat account?
The Senores Pharmaceuticals Ltd IPO be credited to the account on allotment date which is 27th December 2024. Login to your account now
Where can I find the Senores Pharmaceuticals Ltd IPO prospectus?
The prospectus of Senores Pharmaceuticals Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to Senores Pharmaceuticals Ltd IPO?
| IPO Open Date | Friday, December 20, 2024 |
| IPO Close Date | Tuesday, December 24, 2024 |
| Basis of Allotment | Thursday, December 26, 2024 |
| Initiation of Refunds | Friday, December 27, 2024 |
| Credit of Shares to Demat | Friday, December 27, 2024 |
| Listing Date | Monday, December 30, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 24, 2024 |
