Emcure Pharmaceuticals IPO: Emcure Pharmaceuticals Limited is a Pune-based pharmaceuticals company that was founded in the year 1983 and has a good name in the global market. Currently being the 12th largest pharmaceuticals company in India, Emcure primarily deals in the manufacturing and marketing of various types of medical drugs with oral drugs, injectables, and biologics being the majority of the produce.
In addition to the Indian subcontinent, Emcure Pharmaceuticals also operates through 19 subsidiary companies operating in over 70 countries worldwide and has a stronghold over the European and Canadian markets. The pharma giant plays a major role in producing specialized drugs making it the largest manufacturer of drugs for various therapeutic fields including gynecology, blood-related diseases, and HIV antivirals. Reports also claim that the company is also in the process of making an mRNA covid-19 vaccine.
Emcure Pharmaceuticals IPO Details
Emcure Pharmaceuticals has been in the news regarding the float of an IPO since the day it filed the Draft Red Herring Prospectus (DRHP) in August 2021. Although the Emcure Pharmaceuticals IPO was expected to be launched in November 2021, till now there is no clue about the dates. The following table shows the information regarding the Emcure Pharmaceuticals IPO as per the DRHP:
Emcure Pharmaceuticals IPO Timetable
| IPO Open Date | Not yet finalized |
| IPO Close Date | Not yet Finalized |
| IPO Size | ₹ 4000 to ₹ 5000 Cr (approx.) |
| Fresh Issue | ₹ 1100 Cr (approx.) |
| Offer for Sale | 1,81,68,356 Equity Shares |
| Face Value | ₹ 10 Per Equity Share |
| Price Band | ₹- to ₹- Per Equity Share |
| Listing Exchanges | BSE and NSE |
| QIB | 50% |
| NII | 15% |
| Retail | 35% |
| Discount | N/A |
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IPO Size and Distribution
The Emcure Pharmaceuticals IPO is to be listed in the BSE and NSE and expected to float capital of ₹ 4000 Cr to ₹ 5000 Cr. This issue would comprise a fresh issue of ₹ 1100 Cr and an offer for sale for 1,81,68,356 Equity Shares. The following information gives a detailed bifurcation of the distribution of the Emcure Pharmaceuticals IPO:
Book Building Proportion
The Draft Red Herring Prospectus (DRHP) filed with SEBI discloses that:
- A maximum of 50% of the IPO would be reserved for the QIB;
- Not more than 15% of the issue would be for the NII; and
- At least 35% of the IPO would be solely dedicated to the Retail Investors.
- Offer for Sale
As per the DRHP, a total of 20,30,000 equity shares would be sold by Satish Mehta, 2,50,000 equity shares would be sold by Sunil Mehta. A total of 37,35,000 equity shares would be sold by the promoters’ group. In addition to this, 99,50,000 equity shares would be sold by BC Investments Limited, and lastly, 22,03,356 equity shares by all other group and individual shareholders.
Objects of Emcure Pharmaceuticals IPO
The following are the objects of issue of the Emcure Pharmaceuticals IPO as per the DRHP:
- A total of ₹ 9475.81 for the prepayment or the scheduled repayment of all or a portion of certain outstanding borrowings;
- The remaining amount (not exceeding 25% of the gross issue) is for general corporate purposes.
Fundamentals
The financial statements of Emcure Pharmaceuticals enclosed in the DRHP disclose that the company has shown to be profitable for the last three years. The company earned a net profit of ₹ 210 Cr in FY 19, ₹ 101 Cr in FY 20. The following year brought in some good fortunes for the company, which can be speculated as to the consequences of the covid pandemic, as total revenue was ₹ 6,092 Cr (18% increase) and the net profit rose to ₹ 419 Cr in FY 21.
Promoters and their share
Emcure Pharmaceuticals has two individual promoters, namely Satish Mehta and Sunil Mehta having a 41.92% and 6.13% stake respectively in the company. Apart from them, there are 15 promoters’ groups having a total stake of about 33.55% making it a total of 81.6% of the total capital. The remaining stake rest with other corporate and individual investors of the company.
Registrar and Lead Managers
The DRHP reveals that Link Intime India Private Limited has been appointed as the registrar of the Emcure Pharmaceuticals IPO. In addition to this, the following is the list of the various book running lead managers and global coordinators:
- Axis Capital Limited
- BofA Securities India Limited
- Credit Suisse Securities (India) Private Limited
- JM Financial Limited
- BOB Capital Markets Limited
Conclusion
Lastly, we would say that Emcure Pharmaceuticals isn’t a name that is not known to anyone anymore, and an IPO by such a familiar name is expected to be welcomed by the investors. But on the flip side, with the unclear disclosure of the objects of the issue and a ton of competitors in the market, the Emcure Pharmaceuticals IPO might face some kind of difficulties in its journey through the market. We hope that the information provided by us helps you in your investment decision and provide you with a clear image of the company. Happy Investing!
