🔥 Premium AI-powered Stock Picks from InvestingPro Now up to 50% OffCLAIM SALE

Emcure Pharmaceuticals Set for IPO Launch Amid SEBI Nod

Published 21-06-2024, 09:32 am
© Reuters.

Maharashtra-based Emcure Pharmaceuticals, supported by Bain Capital, has received the green light from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). The pharmaceutical giant, led by MD and CEO Mr. Satish Mehta and backed by Shark Tank India star Namita Thapar, filed its preliminary IPO papers with SEBI in December 2023 and received approval on June 10. This approval is a significant milestone, allowing Emcure to move forward with its plans to raise funds through the public market.

The IPO structure includes a fresh issuance of equity shares worth INR 800 crore and an offer for sale (OFS) of 1.36 crore equity shares by promoters and existing shareholders, as outlined in the draft red herring prospectus (DRHP). Notably, the OFS will include shares from promoter Satish Mehta, who currently holds a 41.92% stake, and BC Investments IV Ltd, an affiliate of Bain Capital, which owns a 13.09% stake. This combination of fresh issuance and OFS aims to strike a balance between raising new capital and providing liquidity to existing shareholders.

Summer Sale: Now you can analyze any IPO post its listing through the revolutionary tool - InvestingPro+, now available at a mouth-watering discount of 74%, for just INR 442/month. Click here to grab your offer today!

The proceeds from the fresh issue will be primarily used to repay debt and for general corporate purposes. As of September 2023, Emcure had outstanding borrowings amounting to INR 2,012.9 crore, with INR 640 crore earmarked for debt repayment. This strategic use of funds will help improve the company's financial health and support its ongoing operations and growth initiatives.

Headquartered in Pune, Emcure Pharmaceuticals is a leading player in the Indian pharmaceutical sector. The company is engaged in the development, manufacturing, and global marketing of a wide range of pharmaceutical products across several major therapeutic areas. This extensive portfolio positions Emcure well in the competitive pharmaceutical landscape, where it competes with industry leaders such as Dr. Reddy's Labs, Cipla (NS:CIPL), Alkem Labs, Torrent Pharma (NS:TORP), Mankind Pharma, and Abbott India (NS:ABOT).

The equity shares for the IPO have a face value of INR 10 each. The company and the selling shareholders will determine the price band and minimum bid lot in consultation with the book-running lead managers, and these details will be announced at least five working days before the bid/issue opening date.

Additionally, up to 50% of the equity shares in the issue, including the anchor investor portion, will be available for allocation to Qualified Institutional Buyers (QIBs), including anchor investors. The shares offered through the Red Herring Prospectus are set to be listed on the BSE and NSE, providing investors with access to trade the company's stock on major exchanges.

With SEBI's approval in place, Emcure Pharmaceuticals is poised to launch its IPO, probably in the next month.

Once the IPO hits the market, investors can do an extremely detailed and accurate analysis via InvestingPro+ before any analyst can come out with their analysis. To stay ahead of the game, click here to try the advanced features of InvestingPro+ at a steep discount of over 74% of INR 442/month.

Read More: Transform Your Investment Strategy with 3 Effective Screeners

X (formerly, Twitter) - Aayush Khanna

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.