Ahmedabad: City-based Senores Pharmaceuticals Limited, 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 company said.

As per the official statement of the company. “The IPO, with a face value of Rs 10 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 statement added.

According to the press note, “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.” the note stated.

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.