IPO listed on 30 Dec'24
Senores Pharmaceuticals Ltd
Minimum Investment
₹ 14,858 / 38 shares
Grey market premium
₹ 284 (72% premium)
Issue price
₹ 391
Listing price
₹ 600
Listing gains
209 (53%)
Listing on
Dec 30, 2024
Our Verdict:
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- From FY22 to FY24, Senores Pharmaceuticals Ltd (SPL) recorded an average Return on Equity (ROE) of 16.5% and a Return on Capital Employed (ROCE) of 8.9%. During this timeframe, the company's annual revenue and profit after tax surged by 289.1% and 474.5%, respectively.
- At the upper end of the price band, the stock's P/E ratio stands at 55.1x, and its P/BV ratio is at 2.3x.
- Benefiting from increased global pharmaceutical spending and market presence in both regulated and unregulated markets for off-patent drugs, SPL presents a promising long-term investment opportunity in its upcoming IPO.
- SPL benefits from rising global pharmaceutical expenditure and market penetration, operating in both regulated and unregulated markets for off-patented drugs.
- Given these factors, Investors may consider subscribing to the IPO with a long-term perspective.
About the company
Founded in
26 Dec'17
Managing director
Swapnil Shah
- SPL is a global, research-focused pharmaceutical company involved in the development and manufacturing of a broad spectrum of pharmaceutical products. The company operates in various therapeutic categories and dosage forms.
- The core of its business is concentrated in the regulated markets of the United States, Canada, and the United Kingdom. Additionally, SPL has a significant presence in Emerging Markets, spanning 43 countries. It also specializes in producing critical care injectables and Active Pharmaceutical Ingredients (APIs).
STRENGTHS
- Exceptional Financial Growth: SPL has exhibited remarkable growth, with operational revenue and net profit seeing substantial compounded annual growth rates (CAGRs) of 289%, and 475%, respectively, from FY22 to FY24.
- Profitability Margins: SPL maintains robust profitability, evidenced by an EBITDA margin of 20.7% and a PAT margin of 15.25% as of FY24.
RISK FACTORS
- Cash Flow Issues: SPL has experienced negative cash flows from operating activities over the past three fiscal years. Continued negative cash flow could negatively impact the firm’s business and operations.
- Geographic Risks: A significant portion of SPL's operating revenue, 66% in FY24, comes from the United States. Any decrease in demand within this region could negatively influence its overall business and financial health.
- Brief Operating History: Incorporated in 2017, SPL recently expanded by acquiring two subsidiaries in 2023 and merging with another company in 2024. This limited consolidated operating history makes it challenging to assess its performance. Future success depends on the effective integration and management of these new entities.
- Legal Challenges: SPL faces ongoing legal disputes involving the company, its subsidiaries, and directors, with potential liabilities totaling Rs 42 crore. Adverse outcomes could harm its reputation and operations.
Issue details
Issue type
Mainstream
Issue size
₹ 582.11 crore
Fresh Issue
₹ 500 crore
OFS
₹ 82.11 crore
Price range
₹ 372 - 391
Lot size
38 shares
Issue Objective
SPL proposes to utilise the net proceeds from the fresh issue for:
- Capital expenditure for setting up a new manufacturing facility for sterile injections at Havix Group, Inc. (operating as Aavis Pharmaceuticals) in Atlanta;
- Repayment or partial pre-payment of certain company borrowings;
- Repayment or partial pre-payment of borrowings by the subsidiary, Havix;
- Funding the working capital needs of the company and its subsidiaries, Senores Pharmaceuticals Inc. and Ratnatris Pharmaceutical Pvt Ltd.
- Supporting inorganic growth initiatives and other strategic investments; and
- General corporate purposes.
Dates
Bidding open
20 Dec'24
Bidding close
24 Dec'24
Allotment date
26 Dec'24
Refund date
27 Dec'24
Listing
30 Dec'24
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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