The Ahmedabad-based Senores Pharmaceuticals, which launched its ₹582.11 crore IPO on Friday, at a price band of ₹372-391, saw a strong response on Day 1 with a subscription of 1.78 times. Retail investors were the most aggressive, as the window reserved for them subscribed 7.20 times.

 The IPO comprises a fresh issue worth ₹500 crore and an offer-for-sale of up to 21 lakh shares, valued at ₹82.11 crore, by promoters and other selling shareholders. The IPO closes on December 24. The minimum lot size is 38 shares.

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Up to 75 per cent of the IPO is reserved for qualified institutional buyers, 10 per cent for retail investors and the balance 15 per cent non-institutional investors. QIBs’ window is yet to see aggressive bidding even as non-institutions’ portion saw 1.67 times. The IPO has reserved 75,000 shares for its employees; the quota was subscribed 1.9 times.

Ahead of the IPO, the company has garnered ₹260.62 crore from anchor investors on Thursday. The company informed the bourses that it allocated 66,65,725 shares at ₹391 to anchor investors, who included foreign and domestic institutions. Among them are ICICI Prudential Mutual Fund, Aditya Birla Sun Life Insurance, Mahindra ManuLife Large & Mid Cap Fund, Bank of India Multicap Fund, Bank of India Mid & Small Cap Equity & Debt Fund, Ikigai Emerging Equity Fund, SBI General Insurance Company, Troo Capital Fund, Meru Investment Fund PCC- Cell I, Edelweiss Life Insurance Company, Astorne Capital VCC – Arven, Beacon Stone Capital VCC – Beacon Stone I, Goldman Sachs Investment (Mauritius), Ashika Global Securities, Integrated Core Strategies Asia Pte. Ltd., Societe Generale – ODI, Unity Small Finance Bank, Fortune Hands Growth Fund, and Gagandeep Credit Capital Pvt. Ltd.

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The company proposes to utilise the net proceeds towards funding: Investment in one of the subsidiaries, Havix Group Inc. d/b/a Aavis Pharmaceuticals; capital expenditure requirements for setting up a manufacturing facility for the production of sterile injections in the Atlanta facility; repayment/pre-payment, in full or in part, of certain borrowings; investment in the subsidiary – Havix, for repayment/pre-payment in whole or part of certain borrowings availed by it; and funding the working capital requirements of the company. 

Besides, it will also invest in subsidiaries – Senores Pharmaceuticals Inc and Ratnatris Pharmaceutical Private Ltd – to fund their working capital requirements.

The company will also utilise funds for inorganic growth through acquisition and other strategic initiatives.

Incorporated in December 2017, Senores Pharmaceuticals Limited is a global research-driven pharmaceutical company focused on developing and manufacturing a wide range of pharmaceutical products, mainly for the Regulated Markets in the US, Canada and the UK across various therapeutic areas and dosage forms, with a presence in emerging markets across 43 countries. It also manufactures critical care injectables and APIs.

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 issue.