Emcure Pharma IPO targets Rs 1952.03 crore via a price band of Rs 960-1008 per share, launching July 3, 2024, and closing July 5, 2024. Funds will support debt repayment and corporate goals. With a Rs 299 grey market premium, Emcure Pharma reflects strong investor interest.
Emcure Pharma’s IPO is the fourth biggest IPO of 2024. In the grey market, the IPO trades at a premium of Rs 299, while its upper price band is Rs 1008 per share.
Emcure Pharmaceuticals IPO:
The IPO of Emcure Pharmaceuticals, a firm linked with Namita Thapar (renowned as ‘Phar-Maa’ and a judge on Shark Tank India), begins for retail investors today, July 3. The IPO will close on July 5, 2024. The company intends to raise Rs 1952.03 crore through this issue. A day before the IPO launch (on July 2), the company secured Rs 582.6 crore from anchor investors/institutional investors. Notably, Emcure Pharma’s IPO is the fourth largest IPO of 2024, following Bharti Hexacom (Rs 4275 crore), Aadhar Housing Finance (Rs 3000 crore), and Go Digit (Rs 2614 crore).
Emcure Pharma IPO GMP Today:
Market analysts believe the IPO will have an exceptional debut. In the grey market, Emcure Pharma’s IPO is trading at a premium of Rs 299, while its upper price band is Rs 1008 per share. Thus, the company’s shares are trading at a 29.66% premium in the grey market. It is essential to note that the grey market is an unauthorized market where company shares trade before being listed on official markets like BSE and NSE. Emcure Pharmaceuticals’ IPO is anticipated to be listed on July 10, 2024.
Anchor Investors’ Share Purchase:
According to a circular uploaded on BSE, Bain Capital-backed Emcure Pharmaceuticals allotted 28,15,962 shares (48.72% of the total allotment to anchor investors) to anchor investors out of a total allotment of 57,79,850 equity shares.
Shares were allotted to 48 funds through 29 schemes, including 16 domestic mutual funds. Prominent investors in the anchor book include HDFC Mutual Fund, ICICI Prudential MF, SBI MF, Nippon India MF, Abu Dhabi Investment Authority, Goldman Sachs Asset Management, Nomura, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, White Oak Capital, Aditya Birla Sun Life Trustee, Axis, Kotak, Mirae, Motilal Oswal, and SBI Life Insurance Company. Major global investors like Abu Dhabi Investment Authority, Goldman Sachs, and Morgan Stanley acquired shares worth over Rs 71 crore from the anchor book.
Price Band and Fundraising Details:
Emcure Pharma aims to gather Rs 1952.03 crore through its IPO. This includes raising funds by issuing 7,936,507 new shares and an offer for sale (OFS) of 11,428,839 shares. The company plans to raise Rs 800 crore through new shares and Rs 1,152 crore through OFS. Shareholders selling shares through OFS include promoters like Ramanlal Mehta, Sunil Rajnikant Mehta, Namita Vikas Thapar, and Samit Satish Thapar.
Namita Vikas Thapar holds 63,39,800 equity shares in the company, which constitutes 3.5% of the total stake. The IPO’s price band is set at Rs 960-1008. The lot size is 14 shares, requiring retail investors to invest at least Rs 14,112. A retail investor can purchase a maximum of 14 lots, meaning a maximum investment of Rs 197,568 through the public offering.
Utilization of IPO Funds: The funds raised through the IPO will be used for debt repayment and general corporate purposes. As of September 30, 2023, Emcure had a total outstanding debt of Rs 2012.8 crore. The net proceeds will be used to repay the principal amount and accrued interest on some loans.
About Emcure:
According to Pharmarack, Emcure (along with its branch Zuventus) is ranked 12th in the domestic pharma market as of May 2024. Its product portfolio includes oral medications, injectables, and biotherapeutics, with a presence in 70 countries including India, Europe, and Canada. Emcure has 13 manufacturing plants in Maharashtra, Gujarat, Sikkim, Karnataka, and the Union Territory of Jammu and Kashmir in India.
Company’s Financial Performance:
For the fiscal year ending March 31, 2024 (FY24), the company’s net profit was Rs 527.58 crore, compared to Rs 561.85 crore in FY23 and Rs 702.56 crore in FY22. In terms of revenue, Emcure Pharma’s revenue for FY24 was Rs 6,715.24 crore, Rs 6,031.72 crore in FY23, and Rs 5,918.86 crore in FY22. As of FY24, the company had total assets worth Rs 7,806.16 crore, compared to Rs 6,672.53 crore in FY23.
Certainly! Here’s the information presented in a table format for clarity:
| Aspect | Details |
|---|---|
| Issue Size | Rs 1952.03 crore |
| Fresh Issue | 7,936,507 shares |
| Offer for Sale (OFS) | 11,428,839 shares |
| Price Band | Rs 960-1008 per share |
| Lot Size | 14 shares |
| Minimum Investment | Rs 14,112 |
| Maximum Investment (14 lots) | Rs 197,568 |
| IPO Timeline | Opens July 3, 2024 |
| Closes July 5, 2024 | |
| Listing on July 10, 2024 | |
| Anchor Investor Allocation | Rs 582.6 crore raised |
| Grey Market Premium (GMP) | Rs 299 (29.66% premium over upper price band) |
| Fund Utilization | Debt repayment and general corporate purposes |
| Financial Performance (FY24) | Revenue: Rs 6,715.24 crore |
| Net Profit: Rs 527.58 crore | |
| Market Position | Rs 299 (29.66% premium over the upper price band) |
| Global Operations | Presence in 70 countries, 13 manufacturing plants |
| Debt Repayment | Total debt as of Sept 30, 2023: Rs 2012.8 crore |
| Key Investors | HDFC MF, ICICI Prudential MF, Abu Dhabi Investment Authority, others |
This table summarizes the key details and metrics related to Emcure Pharma’s IPO, making it easier to grasp the essential information at a glance.
Here’s a concise breakdown of Emcure Pharma’s IPO:
Emcure Pharma IPO Overview
- Issue Details: Emcure Pharma aims to raise Rs 1952.03 crore through its IPO, which includes issuing 7,936,507 new shares and selling 11,428,839 existing shares (Offer for Sale).
- Price Band: The IPO’s price band is set at Rs 960-1008 per share.
- Lot Size: Retail investors need to buy a minimum of 14 shares, costing at least Rs 14,112 per lot.
- Timeline: The IPO opens for retail investors on July 3, 2024, and closes on July 5, 2024. Listing is expected on July 10, 2024.
Financial Snapshot
- Revenue: For FY24, Emcure Pharma reported revenue of Rs 6,715.24 crore, up from Rs 6,031.72 crore in FY23.
- Profit: Net profit for FY24 was Rs 527.58 crore, down from Rs 561.85 crore in FY23.
- Debt Repayment: Proceeds will be used to repay debt, which stood at Rs 2012.8 crore as of September 30, 2023.
Market Position and Operations
- Market Presence: Ranked 12th in the domestic pharma market as of May 2024, with a product portfolio including oral medications, injectables, and biotherapeutics.
- Global Reach: Operations in 70 countries, with 13 manufacturing plants across India.
Investor Interest
- Anchor Investors: Raised Rs 582.6 crore from anchor investors, including prominent global and domestic funds like HDFC MF, ICICI Prudential MF, and Abu Dhabi Investment Authority.
- Grey Market Premium (GMP): Trading at a premium of Rs 299 in the grey market, indicating strong market interest.
Conclusion
Emcure Pharma’s IPO presents an opportunity for investors to participate in one of the significant IPOs of 2024, backed by strong investor interest as evidenced by the grey market premium and anchor investor participation. The funds raised will support debt reduction and general corporate purposes, enhancing the company’s financial stability and growth prospects.
This summary aims to provide a clear and accessible overview of Emcure Pharma’s IPO for potential investors and stakeholders.
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