The IPO of Carraro India and Senores Pharmaceuticals will close on December 23. Senores Pharmaceuticals was fetching a premium of 55% in the grey market while the stocks of Carraro India were neither attracting a premium nor a discount. Both the IPOs opened on December 20. If you’re perplexed which one to bet on? Here are some points to keep in mind before moving ahead:

Carraro India IPO Financials 

The company reported a profit after tax of Rs 62.6 crore in FY24, a growth of 29% on year, compared to Rs 48.5 crore posted in FY23. The company’s net profit was Rs 22.4 crore in FY22. Its revenue from operation came in at Rs 1,789 crore, an increase of 4.4% on year in FY24, against Rs 1,713 crore in FY23. In FY22, the company’s net profit stood at Rs 1,497.5 crore. “Overall, Carraro India Limited’s IPO valuation appears favourable, given its strong financial performance, solid market position, and positive industry trends. The company’s ability to maintain high growth rates, innovate, and adapt to changing market conditions positions it well for future success,” said Bajaj Broking in an IPO note. 

Carraro India IPO review

“At the upper price band, the company is valuing at a P/E of 45.83x, with an EV/EBITDA of 31.6x and a market cap of Rs 4,002.3 crore post-issue of equity shares and a return on net worth of 16.92%. We believe that the IPO is fairly priced and recommend a “Subscribe-Long term” rating to the IPO,” said Anand Rathi Research in an IPO note. 

“The company’s focus on research and development has led to the introduction of advanced products that cater to the evolving needs of the market. This innovative edge is a significant factor in its valuation, as it ensures the company’s ability to stay ahead of competitors and meet market demands effectively. Investors should consider these factors, along with the broader economic environment and market conditions, to make informed investment decisions,” said Bajaj Broking in an IPO note. 

Carraro India IPO details

The IPO closes today December 24. The IPO opened on December 20 to raise Rs 1,250 crore. The issue is entirely an offer for sale of 1.78 crore shares of promoters and other selling shareholders. The IPO price band is fixed between Rs 668 to Rs 704 per equity share. The allotment of shares is expected to be finalised on December 26. The IPO will likely be listed on BSE and NSE on December 30. Axis Bank, BNP Paribas, and Nuvama Wealth Management are the book-running lead managers of the IPO, while Link Intime India is the registrar for the issue.

Senores Pharmaceuticals IPO Financials 

The company’s net profit and revenue saw a significant jump compared to the last three years. Its net profit came in at Rs 32.7 crore, a jump of 289% year-on-year in FY24, compared with Rs 8.4 crore in FY23. Its revenue from operations stood at Rs 214.5 crore in FY24, a jump 6 times on year, against Rs 35.3 crore in FY23. “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,” said Bajaj Broking in an IPO note. 

Senores Pharmaceuticals IPO review

“At the upper price band, the company is valued at a P/E of 55x with a market cap of Rs 1,800.6 crore post-issue of equity shares and a return on net worth of 23.6% based on FY24. On the valuation front, we believe that the company is fairly priced. Therefore, we recommend a “Subscribe” rating to the IPO,” said Anand Rathi Research in an IPO note. 

“In terms of valuation, Senores Pharmaceuticals is well-positioned within the growing pharmaceutical industry, especially post-pandemic. The demand for pharmaceuticals remains high, and the regulatory environment in key markets is favourable,” said Bajaj Broking in an IPO note.

Senores Pharmaceuticals IPO details

The IPO closes on December 23. It opened on December 20 to raise Rs 582.11 crore. The issue is a combination of fresh shares and an offer for sale. The allotment of shares is expected to be finalised on December 26. The IPO is likely to be listed on BSE and NSE on December 30, as per the tentative schedule. The company set the IPO price band between Rs 372 to Rs 391 per equity share. Equirus Capital, Ambit, and Nuvama Wealth Management are the book-running lead managers of the IPO, while Link Intime India is the registrar for the issue.