Senores Pharmaceuticals, an emerging player in the pharma industry, has kicked off its IPO today (December 20). The bidding window of the public issue is set to close on December 24. The IPO of Senores Pharmaceuticals offers shares in a price range of Rs 372 to Rs 391 per share.
Senores Pharmaceuticals IPO – GMP
As of today and the recent trend, the grey market premium (GMP) for the Senores Pharmaceuticals IPO is Rs 150, indicating that the stock is expected to list at a premium, with an estimated listing price of Rs 541 per share, a 38.36 per cent higher than the upper end of the price band.
Early Subscription Trends
Coming to the IPO’s subscription status, as of the first day and the latest development, the issue so far has been subscribed 44 per cent. The retail investors’ segment lead the charge, with a 1.94 times subscription rate.
Senores Pharmaceuticals – What’s on Offer?
Senores Pharmaceuticals IPO is a mix of fresh shares worth Rs 500 crore and an Offer for Sale (OFS) of Rs 82.11 crore from existing promoters and shareholders.
The Senores Pharmaceuticals IPO has a total share offering of 85,34,681 shares. The allocations of the shares across various investor categories are as follows:
Qualified Institutional Buyers (QIBs) have been allocated 75 per cent and in the Non-Institutional Investors (NIIs) category, 15 per cent of the offering is for high-net-worth individuals and other non-institutional investors. The remaining 10 per cent is reserved for retail investors, who can bid for a minimum of 38 shares.
Senores Pharmaceuticals IPO also includes an employee segment, which has been subscribed 65 per cent.
Anchor investors
Senores Pharmaceuticals IPO has raised Rs 261 crore from anchor investors ahead of its opening. Key institutional investors such as ICICI Prudential Mutual Fund, Mahindra Manulife Mutual Fund, Aditya Birla Sun Life Insurance, SBI General Insurance, and Troo Capital.
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The anchor investors have been allotted 66.66 lakh shares, with each share priced at Rs 391.
“At the upper price band company is valued at P/E of 55x with a market cap of ₹18,006 million post issue of equity shares and 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,” added Anand Rathi brokerage firm in an IPO note.
“SPL has a distinct specialty and complex product portfolio for regulated markets, strong R&D capabilities to build differentiated portfolio products and commercialize them with higher market penetration establishing a strong foothold through long term marketing arrangements earning revenues growth in form of licensing fees, transfer pricing and profit sharing. SPL has adopted an inorganic growth through synergistic acquisitions, enhancing market share in USA and regulated markets, alliances for CMO/CDMO business, professional and dedicated management team for diverse business verticals augurs well for the company in the long term. Hence, we recommend a SUBSCRIBE to the issue,” added Reliance Securities in an IPO note.