Emcure Pharma IPO Review and Details
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Emcure Pharma IPO Details: Key Facts
- EMCURE PHARMA is the 13th largest technology-driven biopharma company in India.
- The company manufactures and markets a broad range of pharmaceutical products globally.
- The company filed the Draft Red Herring Prospectus (EMCURE PHARMA DRHP) on December 16, 2023.
- The company presence in all major therapeutic areas including Gynaecology, cardiology, blood-related, oncology, respiratory, CNS & HIV among others.
- Emcure Pharma IPO is opening from July 3, 2024 to July 5, 2024.
- The company’s promoters are Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta.
- Emcure Pharma IPO consists of a fresh issue of Equity Shares aggregating up to ₹8,000 million and an offer for sale of Up to 13,678,839 Equity Shares
- Emcure Pharma IPO face value: Rs 10
- Crisil the credit rating agency has rated this company with a stable outlook and given an A+/Stable rating
- Strong growth potential for this business despite high competition.
- I would invest in the company during the IPO process if the valuation of the company is reasonable.
Table of Contents
Emcure Pharma DRHP filed on December 16, 2023, to float its Initial public offering. According to DRHP, this IPO consists of a fresh issue of Equity Shares aggregating up to ₹8,000 million and an offer for sale of Up to 11,428,839 Equity Shares.
Promoters hold an 82.97 % stake in the company. During the offer for sale (OFS) promoters and promoter groups including Satish Ramanlal Mehta, and Sunil Rajanikant Mehta will be selling 49.85 lakh equity shares in the OFS. The investors such as BC Investments IV will be selling 72.34 lakh equity shares in the OFS.
The net proceeds from this IPO from the Fresh Issue will be utilized towards the repayment or prepayment of all or a portion of certain outstanding borrowings of the company.
Emcure Pharma IPO Details
| Emcure Pharma IPO Details | Emcure Pharma IPO Details date, Price and other |
|---|---|
| Emcure Pharma IPO date | July 3, 2024 to July 5, 2024 |
| Emcure Pharma IPO Price band | ₹960 to ₹1008 per share |
| IPO date of allotment | Monday, July 8, 2024 |
| Refunds Initiation date | Tuesday, July 9, 2024 |
| Credit of Shares to Demat Account | Tuesday, July 9, 2024 |
| Emcure Pharma IPO date of listing | Wednesday, July 10, 2024 |
| Total IPO size | 19,365,346 shares (aggregating up to ₹1,952.03 Cr) |
| Fresh Issue | 7,936,507 shares (aggregating up to ₹800.00 Cr) |
| Offer for Sale | 11,428,839 shares of ₹10 (aggregating up to ₹1,152.03 Cr) |
| Retail Allocation | 10% |
| Emcure Pharma share price Face Value | ₹ 10 per share |
| Emcure Pharma share price Listing on | BSE & NSE |
Now the big question is – Emcure Pharma IPO good or bad ? Let us find out details about the company and why you should consider investing in this company.
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Emcure Pharma IPO Good or Bad?
- Emcure Pharma is a leading pharma company in India.
- The company owns 13 manufacturing units across India with 350+ brands and five R&D centers.
- The company has a strong network across 70+ countries.
- The vertically integrated company with production facilities for APIs, biologics, and formulations.
- Emcure Pharmaceuticals entered into the over-the-counter (OTC) market, with their product Galact. Other OTC products are lining up to come to market.
Emcure Pharma Products
Emcure Pharma operates in segments like oral, injectable, APIs, and Biopharmaceutical products. The company operates in India under the name of Emcure India and Zuventus Healthcare. In terms of domestic sales, Emcure Pharmaceuticals has 8 brands among the 300 highest-selling brands of the Indian pharmaceutical market.
Emcure Pharma Financial Strength
The company has experienced strong growth in sales in India and contributed to 53.16% of the total revenue from operations for the Financial Year 2023-24. Over the Financial Years 2019 to 2023, the company’s exports grew at a CAGR of 18.32% to ₹28,041.52 million in the Financial Year 2023 while domestic Sales grew at a CAGR of 10.80%,
The PAT margin of the company has been around 10% for the last two financial years (11.87% in FY2022 and 9.31% in FY2023). Over the last two financial years, the company has reported strong ROCE and ROE over 20%.
Objective Behind the Emcure Pharma IPO
- The company will not receive any proceeds from the Offer for sale.
- The net proceeds from this IPO from the Fresh Issue will be utilized towards the repayment or prepayment of all or a portion of certain outstanding borrowings availed by the company which is around INR 6,400.00 million
- The rest of the amount will be used for general corporate purposes
- The listing will also enhance the visibility and brand image of the company as well as provide a public market for Equity Shares in India.
Emcure Pharma General Partners
MNCs are increasingly focusing on partnerships and collaborations to drive access and scale without major investments. Emcure has partnered with the following companies in different areas as mentioned.
- Gilead in Anti-Viral area
- Merck in Anti-Viral area
- Roche in the Oncology area
- Sanofi in the Oncology area
- Viiv Healthcare in the Anti-Viral Area
Emcure Pharma General Competitors
The competitors of the Emcure Pharma General are
- Dr Reddy’s Laboratories Limited
- Cipla Limited
- Alkem Laboratories Limited,
- Torrent Pharmaceuticals Limited
- Mankind Pharma Limited
- Abbott India Limited
- J.B. Chemicals & Pharmaceuticals Limited
Emcure Pharma IPO review: Do you invest?
- India is one of the fastest growing economies in the world while India’s public spending on healthcare services is much lower than that of its global peers.
- As the economy grows, healthcare spending in India will also go up which will boost this sector’s growth.
- Emcure is one of the fastest-growing companies in India with a strong brand and proven capabilities.
- Emcure Pharma is focusing on innovation with strong R&D capabilities.
- Its product range and geographic presence help the company to minimize the risk.
- Considering the above factors EMCURE PHARMA is a strong company to invest in.
- I would like to invest in its IPO both for listing gain and long-term investment.
Emcure Pharma IPO GMP
| Date – Emcure Pharma IPO GMP | IPO Price | GMP | Estimated Listing Price |
|---|---|---|---|
| 09-07-2024 | ₹1008 | ₹365 | ₹1373 |
| 09-07-2024 | ₹ 1008 | ₹365 | ₹ 1373 |
| – | ₹ – | ₹ – | ₹ – |
Frequently Asked Questions (FAQs)
Emcure Pharma Filed DRHP?
Yes, here is the EMCURE PHARMA IPO on December 16, 2023, to float its Initial public offering consisting of fresh issues and OFS.
Who are the Emcure Pharmaceuticals owner?
The company’s promoters are Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta.
Where is Emcure Pharma HQ?
Plot No. P-1 and P-2, IT-BT Park, Phase II, M.I.D.C., Hinjawadi, Pune 411 057, Maharashtra, India.
Email:investors@emcure.com, www.emcure.com
Tel:
+91 20 3507 0033, +91 20 3507 0000
When is the Emcure Pharma IPO launch date?
The Emcure Pharma IPO date has not yet been announced. However, it may be open for subscription in August 2024.
What is the Emcure Pharma IPO Price?
The Emcure Pharma IPO Price has not yet been announced
What are Emcure Pharma products?
Emcure Pharma products can be segmented like oral, injectable, APIs, and Biopharmaceutical products. The company operates in India under the name of Emcure India and Zuventus Healthcare.