Investor enthusiasm for Emcure Pharmaceuticals IPO on its second bidding day was notably strong, reflecting robust market conditions. The offering has garnered substantial interest from non-institutional investors, individual investors, and qualified institutional buyers alike.
Emcure Pharmaceuticals, headquartered in Pune, is engaged in extensive research, development, production, and global marketing of a diverse range of pharmaceutical products across crucial therapeutic areas. The IPO’s public subscription, priced between ₹960 and ₹1,008 per share, commenced on July 3 and will conclude on July 5.
The IPO includes new equity shares worth ₹800 crore, alongside the issuance of 1.14 crore equity shares at the upper end of the price band, amounting to ₹1,152 crore. This increases the overall public offering size to ₹1,952 crore. Notably, BC Investments IV Ltd, a branch of Bain Capital from the US, and promoter Satish Mehta are among the entities selling shares in the Offer for Sale (OFS). Proceeds from the new issuance will be utilized for debt repayment and general business operations.
Emcure Pharmaceuticals IPO has also highlighted ten key points from its Red Herring Prospectus (RHP) that potential investors should consider before subscribing to the issue. The promoters involved in the OFS include Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta, among others.
The company’s business operations span various therapeutic areas globally, positioning it strongly in the pharmaceutical sector. For the MAT September 2023 period, Emcure Pharmaceuticals ranked fourth in market share within its covered markets and 13th in domestic sales among Indian pharmaceutical companies. Notably, it leads in gynaecology and HIV antiviral therapy segments for the same period.
Emcure Pharmaceuticals operates through subsidiaries such as Uth Beverage Factory Private Ltd and Avet Lifesciences Private Ltd, among others, along with 13 manufacturing facilities and five dedicated R&D centers in India. Its financial performance has shown robust growth, with domestic revenues outpacing the industry average, expanding at a CAGR of 10.80% between September 2019 and September 2023.
However, the IPO does come with inherent risks, including potential manufacturing or quality control issues that could impact operations and regulatory compliance, potentially leading to legal repercussions. Anchor investors in the IPO will face lock-in periods for allocated equity shares, ensuring stability in the initial post-IPO trading period.
Also Read: Emcure Pharmaceuticals IPO: Bidding Open Until July 5, 2024
Disclaimer: Investors are advised to consult with certified financial experts before making any investment decisions, as views and recommendations may vary among analysts and broking firms.
