Ahmedabad-based Senores Pharmaceuticals Limited, global research driven pharmaceutical company engaged in developing and manufacturing differentiated complex pharmaceutical products
FinTech BizNews Service
Mumbai, July 30, 2024: Ahmedabad-based Senores Pharmaceuticals Limited, global research driven pharmaceutical company engaged in developing and manufacturing differentiated complex pharmaceutical products has filed its draft red herring prospectus (DRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to mop up funds through an initial public offering (IPO).
The IPO, with a face value of Rs10 each, is a mix of fresh issuance of Rs 500 crore and an offer for sale of up to 27 lakh equity shares by Promoters and Other Selling Shareholders. The offer also includes a reservation for a subscription by eligible employees.
The offer for sale consists of up to 8.5 lakh equity shares by Swapnil Jatinbhai Shah, up to 5.5 lakh equity shares by Ashokkumar Vijaysinh Barot, up to 3 lakh equity shares by Sangeeta Mukur Barot, up to 10 lakh by Prakash M Sanghvi.
The company, in consultation with the book-running lead managers, may consider an issue of specified securities, aggregating to Rs 100 crores as Pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.
The offer is being made through the book-building process, wherein not less than 75% of the net offer shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the net offer shall be available for allocation to non-institutional investors, and not more than 10% of the net offer shall be available for allocation to retail individual investors.
The proceeds from its fresh issuance to the extent of Rs 107 crore will be utilized for funding the capital expenditure requirements by investment in its Subsidiary, Havix, for setting up a manufacturing facility for the production of sterile injections in its Atlanta facility; Rs 93.7 crore for re-payment/pre-payment, in full or in part, of certain borrowings availed by the Company and its subsidiaries, namely, Havix, Ratnatris and SPI; Rs 102.74 crore for funding the working capital requirements of the Company and its Subsidiaries, namely, SPI and Ratnatri and funding inorganic growth through acquisition and other strategic initiatives and general corporate purposes.
Senores Pharmaceuticals specializes in identifying, developing, and manufacturing a wide array of specialty, underserved, and complex pharmaceutical products, positioning itself as a preferred partner for select customers. Utilizing data analytics, research, market assessment, and experienced management; it strategically selects commercially underserved molecules and introduces it in both Regulated Markets mainly US and Canada and Emerging Markets across 43 countries.
As of March 31, 2024, it had three dedicated 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.
It launched its critical care injectables business across India in 2022. Part of the critical care injectables are manufactured at its Chhatral Facility and part sourcing is done from injectables players in the Indian market. As of March 31, 2024, it had launched 54 products in major therapeutic segments including antibiotics, anti-bacterial, anti-fungal and blood line.
Senora is in the process of expanding its USFDA and DEA approved Atlanta Facility by implementing a brownfield project, and ramping up its R&D facilities by installing additional laboratory equipment. 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. It also caters to semi regulated markets including South Africa, Saudi Arabia and Israel.
For its emerging markets business, the company develops and manufactures pharmaceutical products across various therapeutic areas for the Emerging Markets through its WHO-GMP-approved manufacturing facility in Chhatral (Ahmedabad), Gujarat. As of May 31, 2024, it obtained product registrations for 182 products, and filed product registrations for 245 products.
The company has long term marketing arrangements with prominent 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 to build an extensive pipeline across diverse dosage forms and therapeutic areas. As of March 31, 2024, it has served 121 customers in its API business including Akum Drugs & Pharmaceuticals Limited, Lincoln Pharmaceuticals Limited, Acme Lifetech LLP among others.
Senora Pharma has received approvals for 19 ANDAs and has commercialized 21 products in the US and Canada markets, as of March 31, 2024. The approved ANDAs include four products where it has Competitive Generic Therapeutic (“CGT”) designations. As of May 31, 2024, Senores has identified and filed 6 ANDAs and it has six products are in stability testing, ongoing exhibits for two products. Additionally, it has three products are ready for exhibit, and 34 ANDAs are under development.
As per the F&S Report, the Company received CGT exclusivity for 75% of its approvals, ranking second in terms of proportion of CGT approvals with exclusivity among companies with a higher-than-average number of CGT approvals (i.e., greater than three ingredients with CGT approvals. It was the first company globally to identify CGT for Chlorzoxazone 250mg and launched the product in CY 2021 with six months exclusivity.
Senores Pharmaceuticals’ revenue from operations increased by 507.08% from Rs35.34 crore in fiscal 2023 to Rs214.52 crore in fiscal 2024, primarily due to an increase in the sale of products, sale of services, and other operating income; Profit after tax increased by 287.84% from Rs 8.43 crore in fiscal 2023 to Rs 32.71 crore in fiscal 2024.
Equirus Capital Private Limited, Ambit Private Limited and Nuvama Wealth Management Limited are the book-running lead managers and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on BSE and NSE.
