Bain Capital-backed Emcure Pharma IPO to Open on July 3: Namita Thapar to Sell Stake—Top 10 Things to Know

Emcure Pharmaceuticals IPO: The initial public offering (IPO) of Emcure Pharmaceuticals Ltd, a leading pharmaceutical company, will be available for subscription starting Wednesday, July 3, 2024. Emcure develops and manufactures a wide range of pharmaceutical products, including injectables, biotherapeutics, and oral medications, across various therapeutic areas. The company has a strong presence in over 70 countries, particularly in Europe, Canada, and India.

The shareholders selling their stakes in this public issue include promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, Samit Satish Mehta, and investor BC Investments IV Ltd, which is affiliated with the US-based private equity firm Bain Capital. Between March 31, 2023, and March 31, 2024, Emcure Pharma’s profit after tax (PAT) fell by 6.1%, while its sales increased by 11.33%.

According to the red herring prospectus (RHP), Emcure’s listed competitors include Dr. Reddy’s Laboratories Ltd (P/E of 17.93), Cipla Ltd (P/E of 30.10), Alkem Laboratories Ltd (P/E of 33.86), Torrent Pharmaceutical Ltd (P/E of 57.74), Mankind Pharma (P/E of 45.30), Abbott India Ltd (P/E of 47.43), and J. B. Chemicals & Pharmaceutical Ltd (P/E of 50.49).

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

1. Key Dates: The Emcure Pharma IPO opens for subscription on July 3, 2024, and closes on July 5, 2024. Allocation to anchor investors is scheduled for Tuesday, July 2.

2. Price Band: The price band for the Emcure Pharma IPO is set between ₹960 and ₹1,108 per equity share, each with a face value of ₹10.

3. IPO Details: The IPO is a book-built issue worth ₹1,952.03 crore. It includes a fresh issue of 0.79 crore shares totaling ₹800.00 crore and an offer for sale (OFS) of 1.14 crore shares amounting to ₹1,152.03 crore.

4. Lot Size: Investors can apply for a minimum of 14 shares and in multiples thereof. The floor price and cap price are 96 times and 100.80 times the face value of the equity shares, respectively.

5. Objectives: The funds raised will be used to repay or prepay certain outstanding borrowings and for general corporate purposes.

6. Reservation: Up to 50% of the shares are reserved for qualified institutional buyers (QIB), at least 15% for non-institutional investors (NII), and at least 35% for retail investors. Additionally, 108,900 equity shares are reserved for employees, who will receive a discount of ₹90 per share.

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

8. Lead Managers and Registrar: The 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. The registrar is Link Intime India Private Ltd.

9. Domestic Sales: For the six months ending September 30, 2023, and FY23, domestic sales contributed 50.84% and 53.16% of Emcure’s total revenue, respectively. The company’s domestic sales grew at a compound annual growth rate (CAGR) of 10.80% from September 2019 to September 2023, outperforming the Indian pharmaceutical market. Emcure has 13 manufacturing facilities in India.