Pune-based Emcure Pharmaceuticals Ltd. has received approval for its Rs 800-crore initial public offering from the Securities and Exchange Board of India. The company, which filed its preliminary IPO papers with SEBI in December 2023, received the greenlight on June 10.
Emcure Pharma is looking to raise Rs 800 crore through a fresh issue of equity shares and also conduct an offer for sale of 1.36 crore shares owned by promoters, promoter group and other investors.
An affiliate of American private equity giant Bain Capital is one of the major investors that is looking to offload shares.
The selling shareholders include:
Family members of the promoters, who own 54.42% stake.
Promoter Group entities, who together own 28.79% stake.
BC Investments IV Ltd., an affiliate of Bain Capital, which owns 13.07% stake.
Other investors who own 1.96% stake.
In the offer for sale, the promoters are looking to sell up to 32.28 lakh equity shares, the promoter group is looking to sell up to 21 lakh shares, BC Investments is looking to sell up to 72.3 lakh shares and other shareholders will look to sell 8.13 lakh shares.
Use Of Proceeds
The net proceeds from the fresh issue will be used to repay debt and for general corporate purposes. Emcure Pharma's lenders include Export Import Bank of India, Tata Capital Ltd., Bajaj Finance Ltd., Axis Bank Ltd. and Bank of Baroda.
In its latest financials as of September 2023, the company reported a consolidated net profit of Rs 287 crore and revenue of Rs 3,219 crore. The company's total outstanding borrowings were Rs 2,013 crore.
Leaders from Emcure (India) and group subsidiaries, Tillomed (UK) and Marcan (Canada) come together in one frame at the CPHI in Frankfrut. (X profile)
About Emcure Pharma
Emcure develops, manufactures and markets a broad range of pharmaceutical products—formulations, biologics, and APIs—across major therapeutic areas, including gynaecology, cardiology, blood-related, oncology, respiratory, CNS and HIV.
The company has more than 350 brands, five R&D centres, and 14 manufacturing facilities across India, as per information on its website. It sells in over 70 countries.
Merchant bankers to the IPO include Kotak Mahindra Capital Co., Axis Capital, Jefferies India Pvt., JP Morgan India Pvt. and Link Intime India Pvt.
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