Emcure Pharmaceuticals IPO: Issue Subscribed 4.98 Times on Second Bidding Day

Historical Context: Initial Public Offerings (IPOs) have been a significant method for companies to raise capital from the public. The concept dates back to the early 17th century when the Dutch East India Company issued shares to the public. In India, the IPO market has evolved significantly since the liberalization of the economy in the 1990s, providing companies with a platform to access public funds and allowing investors to participate in the growth of these companies.

Emcure Pharmaceuticals IPO Subscription Status: The IPO of Emcure Pharmaceuticals, a Pune-based pharmaceutical company, has garnered substantial interest from various investor categories on its second bidding day. The overall subscription status reached 4.98 times, according to data from the Bombay Stock Exchange (BSE).

• Subscription Breakdown:
  • Non-Institutional Investors: 13.67 times
  • Qualified Institutional Buyers (QIBs): 1.00 times
  • Retail Investors: 3.43 times
  • Employee Portion: 4.83 times

On the first bidding day, the IPO was subscribed 1.32 times.

Company Background: Emcure Pharmaceuticals is involved in the research, development, production, and marketing of pharmaceutical products across various therapeutic areas. The IPO price range is set between ₹960 to ₹1,008 per share, and the public subscription period is open until July 5th.

Anchor Investors: Prior to the public offering, Emcure Pharmaceuticals raised ₹583 crore from anchor investors, including prominent names such as Abu Dhabi Investment Authority, Goldman Sachs Asset Management, Nomura, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, SBI Life Insurance Company, Nippon India MF, and Abu Dhabi Mutual Fund.

IPO Details:

• Employee Portion: Up to 108,900 equity shares
• Allocation:
  • QIBs: 50%
  • Retail Investors: 35%
  • Non-Institutional Investors: 15%
• Bidding: Minimum of 14 shares and multiples of 14 shares

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

Selling Shareholders in OFS: Promoters and shareholders including Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, Samit Satish Mehta, Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, Sonali Sanjay Mehta, and BC Investments IV.

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

Grey Market Premium (GMP): The GMP for Emcure Pharmaceuticals IPO is +345, indicating that shares are trading at a premium of ₹345 in the grey market. Considering the upper end of the IPO price band, the expected listing price is ₹1,353 per share, which is 34.23% higher than the IPO price of ₹1,008.

Summary:

• Emcure Pharmaceuticals IPO subscribed 4.98 times on the second day.
• Non-institutional investors subscribed 13.67 times, QIBs 1.00 times, retail investors 3.43 times, and employees 4.83 times.
• The IPO price range is ₹960 to ₹1,008 per share, open until July 5th.
• Raised ₹583 crore from anchor investors.
• Total issue size at the upper price band is ₹1,952 crore.
• GMP indicates a premium of ₹345, with an expected listing price of ₹1,353 per share.