Emcure Pharmaceuticals' IPO to open on July 3rd

28 Jun 2024 , 10:36 AM

Pune-based Emcure Pharmaceuticals is gearing up to launch its maiden public issue for subscription on July 3. The company has set a price band of ₹960-1008 per share for its initial public offering (IPO), which will open for subscription from July 3 to July 5. The bidding for anchor investors will commence on July 2. The allotment is scheduled for July 8, refunds will be processed on July 9, and the firm will be listed on exchanges on July 10.

The IPO comprises a fresh issue of ₹800 Crore and an offer for sale (OFS) of ₹1,151 Crore by existing promoters and shareholders. At the upper price band, the total issue size will amount to ₹1,952 Crore. The market capitalization of Emcure Pharmaceuticals is expected to be around ₹18,260 Crore.

Prominent promoters and shareholders such as Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta are among those selling shares in the OFS. Additionally, Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, BC Investments IV, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, and Sonali Sanjay Mehta will also be offloading their shares.

The public issue includes a reservation of 1,08,900 equity shares for company employees, who will have the opportunity to purchase these shares at a discount to the final offer price. Excluding the employees’ portion, the net issue size has been allocated with 50% reserved for qualified institutional buyers (including up to 60% for anchor investors), 35% for retail investors, and the remaining 15% for non-institutional investors (high net-worth individuals).

Emcure Pharmaceuticals, which has a strong presence in India, Europe, and Canada, plans to utilize ₹600 Crore from the net fresh issue proceeds to repay its debts, which stood at ₹2,091.9 Crore as of the end of March 2024. The remaining funds will be allocated for general corporate purposes.

Emcure competes with industry leaders such as Dr Reddy’s Laboratories, Cipla, Alkem Laboratories, Torrent Pharmaceuticals, Mankind Pharma, Abbott India, and JB Chemicals. The company will debut on the BSE and NSE on July 10.

The merchant bankers for the issue are Kotak Mahindra Capital Company, Axis Capital, Jefferies India, and JP Morgan India, while Link Intime India is the registrar for the offer.