Bain Capital-backed Emcure Pharma IPO to open on July 3: Namita Thapar to offload stake—Top 10 things to know

Emcure Pharmaceuticals IPO: The mainboard initial public offering (IPO) of leading pharma major Emcure Pharmaceuticals Ltd will open for subscription on Wednesday, July 3, 2024. The company develops and manufactures various pharmaceutical products across several major therapeutic areas. Emcure Pharma's product portfolio consists of injectables, biotherapeutics, and orals. The research and development (R&D)-driven firm has targeted markets in over 70 countries, with a significant presence in Europe, Canada, and India.

The selling shareholders in the public issue include promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, Samit Satish Mehta, and investor BC Investments IV Ltd, an affiliate of US-based private equity major Bain Capital. Between March 31, 2024, and March 31, 2023, Emcure Pharma's profit after tax (PAT) decreased 6.1 per cent while its sales rose 11.33 per cent.

Also Read: Emcure Pharmaceuticals IPO sets price band at ₹960-1,008 apiece; Namita Thapar to offload stake partially

According to the red herring prospectus (RHP), the company's listed peers are Dr. Reddy's Laboratories Ltd (with a P/E of 17.93), Cipla Ltd (with a P/E of 30.10), Alkem Laboratories Ltd (with a P/E of 33.86), Torrent Pharmaceutical Ltd (with a P/E of 57.74), Mankind Pharma (with a P/E of 45.30), Abbott India Ltd (with a P/E of 47.43), J. B. Chemicals & Pharmaceutical Ltd (with a P/E of 50.49).

Here are top 10 things to know about Emcure Pharmaceuticals IPO:

1.Emcure Pharmaceuticals IPO key dates: Emcure Pharma IPO opens for subscription on July 3, 2024 and closes on July 5, 2024. The allocation to anchor investors for the Emcure Pharmaceuticals IPO is scheduled to take place on Tuesday, July 2.

2.Emcure Pharmaceuticals IPO price band: Emcure Pharma IPO price band is set at ₹960 to ₹1,108 per equity share of the face value of ₹10 each.

3.Emcure Pharmaceuticals IPO details: Emcure Pharma IPO is a book built issue of ₹1,952.03 crore. The issue is a combination of fresh issue of 0.79 crore shares aggregating to ₹800.00 crore and offer for sale (OFS) of 1.14 crore shares aggregating to ₹1,152.03 crore.

Also Read: Emcure Pharma IPO: Here’s what GMP signals ahead of opening for subscription

4.Emcure Pharmaceuticals IPO lot size: The minimum lot size for an application is 14 shares. This means investors can bid for a minimum of 14 shares and in multiples thereof. The floor price and the cap price are 96 times and 100.80 times the face value of the equity shares respectively.

5.Emcure Pharmaceuticals IPO Objectives: The pharma company proposes to utilise the net proceeds towards repayment and/ or prepayment of all or a portion of certain outstanding borrowings availed by the company and for general corporate purposes.

6.Emcure Pharmaceuticals IPO reservation: Emcure Pharma IPO has reserved not more than 50 per cent of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 per cent for non-institutional Institutional Investors (NII), and not less than 35 pe cent of the offer is reserved for retail investors. Employee portion has been reserved up to 108,900 equity shares. A discount of ₹90 per equity share is being offered to eligible employees bidding in the employee reservation portion.

7.Emcure Pharmaceuticals IPO allotment date and listing date: Tentatively, Emcure Pharma IPO basis of allotment of shares will be finalised on Monday, July 8, and the company will initiate refunds on Tuesday, July 9, while the shares will be credited to the demat account of allottees on the same day following refund. Emcure Pharma share price is likely to be listed on BSE and NSE on Wednesday, July 10.

8.Lead Manager and Registrar of Emcure Pharmaceuticals IPO: The book running lead managers for the Emcure Pharma IPO are Axis Capital Limited, J.P. Morgan India Private Limited, Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited. The registrar for the offering is Link Intime India Private Ltd.

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9.Emcure Pharmaceuticals Domestic Print: In the first six months ended September 30, 2023, and FY23, sales in India contributed 50.84 per cent and 53.16 per cent of the company's total revenue, respectively. The company's domestic sales grew at a CAGR of 10.80 per cent between September 2019 and September 2023, outperforming the Indian pharmaceutical market. Emcure Pharmaceuticals has 13 manufacturing facilities in India. 

10.Emcure Pharmaceuticals IPO GMP Today: Emcure Pharmaceuticals IPO GMP or grey market premium was ₹264. This indicates that Emcure Pharmaceuticals share price were trading at a premium of ₹264 in the grey market, according to investorgain.com. Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Emcure Pharmaceuticals was indicated at ₹1,271 apiece, which is 26.19 per cent higher than the IPO price of ₹1,008. 'Grey market premium' indicates investors' readiness to pay more than the issue price.