Emcure Pharmaceuticals IPO Sets Price Band at ₹960-1,008 per Share; Namita Thapar to Partially Sell Stake

Emcure Pharmaceuticals Limited has announced the price range for its upcoming IPO, setting it between ₹960 and ₹1,008 per equity share, each with a face value of ₹10. The subscription period for the IPO will start on Wednesday, July 3, and end on Friday, July 5. Allocation to anchor investors is scheduled for Tuesday, July 2.

The minimum bid for the IPO is set at 14 equity shares, and bids can be made in multiples of 14 shares thereafter. Employees eligible for the employee reservation portion will receive a discount of ₹90 per share.

The IPO has reserved up to 50% of the shares for qualified institutional buyers (QIB), at least 15% for non-institutional investors (NII), and at least 35% for retail investors. Additionally, up to 108,900 equity shares have been reserved for employees.

The basis of share allotment is expected to be finalized on Monday, July 8. Refunds will be initiated on Tuesday, July 9, and shares will be credited to the demat accounts of allottees on the same day. The shares are likely to be listed on the BSE and NSE on Wednesday, July 10.

Emcure Pharmaceuticals is an Indian company that manufactures and markets a wide range of pharmaceutical products globally, covering various therapeutic areas. The company has a diverse product portfolio that includes injectables, biotherapeutics, and oral medications. It operates in over 70 countries, with significant markets in Europe, Canada, and India.

According to the Red Herring Prospectus (RHP), Emcure’s listed competitors include Dr. Reddy’s Laboratories Ltd, Cipla Ltd, Alkem Laboratories Ltd, Torrent Pharmaceutical Ltd, Mankind Pharma, Abbott India Ltd, and J. B. Chemicals & Pharmaceutical Ltd.

Between March 31, 2023, and March 31, 2024, Emcure Pharmaceuticals’ profit after tax (PAT) decreased by 6.1%, while its sales increased by 11.33%.

The IPO consists of a fresh issue worth ₹800 crore and an offer for sale (OFS) by existing promoters and shareholders amounting to ₹1,151 crore. The total issue size at the top of the price band is ₹1,952 crore.

Promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta are among the shareholders selling their stakes in the OFS. Other sellers include Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, Sonali Sanjay Mehta, and BC Investments IV.

The book-running lead managers for the IPO are Axis Capital Limited, J.P. Morgan India Private Limited, Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited. Link Intime India Private Ltd is the registrar for the offering.