Emcure Pharmaceuticals IPO fully subscribed on Day 1. Check GMP and other details

The initial public offer (IPO) of Emcure Pharmaceuticals, which opened earlier today, was booked fully subscribed in the later half of the first day of bidding, driven by hefty demand from non-institutional investors.

The issue, which closes on July 5, was subscribed 1.22 times in the retail category and 1.92 times in the NII portion. Meanwhile, there were no bids yet in the QIB category.

Ahead of the issue opening, the company raised Rs 582 crore from anchor investors. marquee investors who participated in the anchor round include HDFC MF, ICICI Pru MF, SBI MF, Abu Dhabi Investment Authority, Goldman Sachs Asset Management, Nomura, HDFC Life among others.

The IPO comprises a fresh issuance of equity shares worth Rs 800 crore and an OFS of 1.14 crore equity shares by promoters and existing shareholders. Shark Tank fame Namita Thapar will make around Rs 127 crore through the stake sale under the OFS.

Emcure Pharma IPO GMP

In the unlisted market, the company's shares are trading with a premium of Rs 295, marginally higher than the previous day.

Emcure Pharma IPO review

Emcure Pharmaceuticals is engaged in developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas.

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Analysts believe the company has a scope of business improvement on the back of industry tailwinds and business scalability.

"On the valuation front, at an upper band, the company is fairly priced at a P/E of 36x post issue of equity shares on FY24 earning basis. We believe that the company Thus, we recommend an SUBSCRIBE – long term rating to the IPO," said Anand Rathi.

Emcure Pharma IPO price band

The IPO is priced in the range of Rs 960-1008 per share, where investors can bid for 14 shares in one lot. At the upper end, the company plans to raise Rs 1952 crore through the issue.

Other details

The company proposes to use the net proceeds from the fresh issue to be used towards payment of debt and for general corporate purposes.

Pune-based firm Emcure Pharmaceuticals is engaged in developing, manufacturing, and globally marketing a broad range of pharmaceutical products across several major therapeutic areas.

The research and development driven company with a differentiated product portfolio that includes orals, injectables and biotherapeutics with target markets across over 70 countries including presence in India, Europe and Canada.

The global pharmaceutical market is expected to sustain growth at a compound annual growth rate of approximately 5.0% to 5.5% between the calendar years 2023 and 2028, to reach approximately $1,900 billion (approximately Rs 157 lakh crore) to $1,950 billion (about Rs 161 trillion) in the calendar year 2028.

In FY24, the company's revenue from operations grew 11% year-on-year to Rs 6,658 crore from Rs 5,985 crore in the preceding financial year. Meanwhile, profit after tax declined 6% year-on-year to Rs 527 crore from Rs 562 crore a year earlier.

Kotak Mahindra Capital Company, Jefferies India, Axis Capital, and JP Morgan India are the book-running lead managers to the issue.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)


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