Emcure Pharmaceuticals has received market regulator SEBI’s nod to proceed with its initial public offering. The company filed its preliminary IPO papers back in August and obtained the observation letter on 8 December 2021. The issuance of an observation letter signifies SEBI’s formal approval for an IPO.
Here’s a quick overview of Emcure Pharmaceuticals IPO.
About the IPO
Emcure Pharmaceuticals IPO would consist of the issuance of fresh shares worth Rs. 1,100 crores along with an offer for sale (OFS) of 1,81,68,356 shares by the promoters and the current shareholders of the company.
According to the DRHP, the offer for sale will include a sale of:
- 30 lakhs equity shares by Satish Mehta
- 5 lakhs shares by Sunil Mehta
- 5 lakhs shares by BC Investments IV Ltd.
Apart from this, other investors would also offload their shares during Emcure initial public offering.
As of now, promoters Satish Mehta and Sunil Mehta hold 41.92% and 6.13% in this firm, respectively. In addition, BC Investments owns a stake of 13.09%.
Emcure is also considering a pre-IPO placement aiming to rake up around Rs. 200 crores. In case this placement gets completed, the size of the fresh issue will be lowered.
What are the Objectives of Emcure Pharma IPO?
Emcure Pharmaceuticals will use the proceeds raised through its IPO for the following purposes:
- To repay company debt
- To fund general corporate expenses
A Close Look at the Company
Emcure Pharmaceuticals is one of the leading pharmaceuticals companies in India, which deals with the research, development, manufacturing, and global marketing of a diverse range of pharmaceutical products. Its product portfolio includes orals, tablets, capsules, injectables, and more.
This Pune-based company was established in 1983 by Satish Mehta. It includes more than 350 brands, 5 research and development facilities, and 14 manufacturing centres throughout the country. It has managed to create a strong domestic presence along with a globally expansive network across 70+ countries.
The company aims to deliver innovative and affordable healthcare solutions through its high-quality products and diverse network. Notably, it is now involved with the development of India’s first indigenously built mRNA vaccine against COVID-19 in collaboration with its subsidiary, Gennova Pharmaceuticals.
Competitive Strengths of Emcure Pharma
Emcure Pharmaceuticals being a top pharma company comes with the following strengths:
- This company is a leading player with a significant presence in every major therapeutic segment, including cardiology, oncology, gynaecology, CNS and HIV, and many more.
- It has introduced 6 biosimilars in the domestic market. Biosimilars or biosimilar drugs are medications that are very similar in structure and function to that of a biological drug.
- The company has multiple state-of-the-art API facilities that are vertically integrated to provide an efficient manufacturing rate. These facilities are situated in Bhosari, Hinjewadi, Pimpri, Kurkumbh, Sanand, Bangalore, Mehsana, and others.
Manufacturing facilities adhere to international regulatory norms and cGMP requirements. These facilities have been inspected and approved by various international agencies of Brazil, Canada, Russia, the US, and others.
Emcure Pharmaceuticals is yet to finalize the IPO timetable and other necessary details regarding its IPO. One should take a look at the company’s financial performance before applying for the IPO.
Frequently Asked Questions
- Who are the lead managers of Emcure Pharmaceuticals IPO?
BOB Capital Markets, Credit Suisse Securities (India), Axis Capital, JM Financial, BofA Securities India will serve as the lead running managers of this IPO.
- When is the opening date of Emcure Pharmaceuticals IPO?
The company has not yet finalized the opening date of its IPO.
- Where will be Emcure Pharmaceuticals IPO listed?
The Emcure Pharmaceuticals IPO will be listed on both BSE and NSE.
Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on Investment or recommend buying and selling any stock.