Namita Thapar-Led Emcure Pharma IPO Opens July 3, Aiming to Raise ₹1,952 Crore

Emcure Pharma Launches IPO: Opens for Bidding on July 3


Ahmedabad, July 1: Emcure Pharmaceuticals, backed by Namita Thapar, is set to open its initial public offering (IPO) for bidding on Wednesday, July 3. The company is offering its shares within a price range of ₹960-1,008 apiece. Investors can apply for a minimum of 14 equity shares and in multiples thereafter until Friday, July 5.

The mainboard IPO, opening on July 3, 2024, and closing on July 5, 2024, aims to raise approximately ₹1,952.03 crores. The issue is a combination of a fresh issue of 0.79 crore shares aggregating to ₹800.00 crore and an offer for sale of 1.14 crore shares aggregating to ₹1,152.03 crore.

Market analysts have indicated that the current grey market premium (GMP) for the pharma company stands at ₹260 in the unlisted market. The IPO’s price band is set between ₹960 to ₹1,008 per share, with the minimum investment for retail investors set at ₹14,112 for 14 shares. For sNII (Small Non-Institutional Investors), the minimum lot size is 15 lots (210 shares), amounting to ₹211,680, and for bNII (Big Non-Institutional Investors), it is 71 lots (994 shares), amounting to ₹1,001,952.

The allotment for the Emcure Pharma IPO is expected to be finalized on Monday, July 8, 2024, with the shares listing on BSE and NSE on Wednesday, July 10, 2024. The book running lead managers for the IPO are Kotak Mahindra Capital Company Limited, Axis Capital Limited, J.P. Morgan India Private Limited, and Jefferies India Private Limited. Link Intime India Private Ltd is serving as the registrar for the issue.

Founded in 1981, Emcure Pharmaceuticals Limited develops, manufactures, and markets a wide range of pharmaceutical products globally across several major therapeutic areas. The company ranked 13th in domestic sales among pharmaceutical companies in India for MAT September 2023 and 4th in market share in its covered markets. It is the leading pharmaceutical company in the gynaecology and HIV antiviral therapeutic areas for the same period.

In the six months ending September 30, 2023, and the Financial Year 2023, sales in India contributed 50.84% and 53.16% of Emcure’s total revenue, respectively. The company’s domestic sales grew at a CAGR of 10.80% between September 2019 and September 2023, outperforming the Indian pharmaceutical market.

The net proceeds from the fresh issue are proposed to be utilized towards debt repayment, with the remainder allocated for general corporate purposes.

On Monday, the company’s top management, including Managing Director and CEO Satish Mehta, Namita Thapar, Samit Mehta, Vikas Thapar, and CFO Tajuddin Shaikh, were present in Ahmedabad to interact with the media and discuss the details of the IPO.

(Disclaimer: Investors must thoroughly study the company profile and details before investing.)