Emcure Pharma IPO - A Key Player In Women Healthcare Segment: Geojit

Geojit Research Report

Emcure Pharmaceuticals Ltd. launched its initial public offering today and the offer will close for subscription on July 05. The research-focused pharma company has fixed the price band in the range of Rs 960-Rs 1008.

Purpose of IPO

The offering includes both a fresh issue of Rs 800 crore and an Offer-for-Sale of Rs 1,152 crore. The objective of the offer is the repayment and/or prepayment of all / portion of certain outstanding borrowings availed by the company (Rs 600 crore) and general corporate purposes.

At the upper price band of Rs 1,008, Emcure Pharma is available at a price/earning of 36 times (FY24), which appears to be fully priced. Given its strong R&D expertise in differentiated products, established domestic and international presence, strong focus on the women’s healthcare market, improved profitability post IPO, and diversified product portfolio, we assign a “Subscribe” rating on a medium to long term basis.

Key Risks

A significant portion of domestic revenue, 57% in FY24, comes from acute therapies, which are subject to high competitive intensity.

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