Emcure Pharmaceuticals IPO: All You Need To Know

Emcure Pharmaceuticals Ltd. aims to raise up to Rs 1,952 crore through an initial public offering that opens for subscription on July 3. The Pune-based pharmaceutical company's public issue consists of a fresh issue of Rs 800 crore and an offer for sale of 1.14 crore equity shares.

The Bain Capital-backed company has set a price band of Rs 960–1,008 per share for its IPO. At the upper end of the price band, the market value stands at Rs 19,060 crore.

BC Investments IV Ltd., an affiliate of US-based private equity major Bain Capital, will be among the selling shareholders in the offer for sale, with 72.34 lakh shares to offload.

Kotak Mahindra Capital Co., Axis Capital Ltd., Jefferies India Pvt., and JPMorgan India Pvt. are the issue's book-running lead managers.

The minimum lot size for bidding will be 14 shares, with further bids to be made in multiples.

Click here to check the live subscription status of Emcure Pharmaceuticals IPO

• Issue opens: July 3.

• Issue closes: July 5.

• Issue price: Rs 960–1,008 per share.

• Fresh issue: Rs 800 crore.

• Offer for sale: 1.14 crore equity shares.

• Total issue size: Rs 1,952 crore.

• Bid lot: 14 shares.

• Listing: BSE and NSE.

The net proceeds from the fresh equity issue will be allocated as follows:

• Proceeds worth Rs 600 crore from the fresh issue will be used to repay debt

• Proceeds will be allocated to general corporate purposes, which might include funding organic and inorganic growth opportunities, including acquisitions, and investment in subsidiaries among others.

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

The company has more than 350 brands, five research and development centres, and 14 manufacturing facilities across India, as per information on its website. It sells in over 70 countries with a strong presence in India, Europe and Canada.

The company is focused towards pharmaceutical products used in chronic therapeutic areas and has been granted 220 patents and has 30 pending patent applications in several countries. It had submitted 102 drug master files for APIs with the U.S. Food and Drug Administration.

As of March 31, 2024, the company had a team of 548 qualified scientists and five dedicated research and development facilities in India.

The Pune-based pharmaceutical company's profit fell 6.1% to Rs 527.57 crore during the financial year 2024 along with a decline in the Ebitda margin. The company's revenue from operations rose 11.2% during the fiscal to Rs 6,658.25 crore.

The pharma major's sales outside India contributed to 51.72% of the total revenue from operations for the financial year 2024.

Here are the key risks that might potentially affect the functioning of the businesses:

• Any manufacturing or quality control problems may damage the company's reputation.

• Failure to comply with applicable quality standards may result in product liability claims, which could adversely affect their business and financial condition.

• Manufacturing and research and development operations are subject to operational risks.

• The company is subject to extensive government regulations in India and our international markets.

• Any disruptions to the supply or increases in the pricing of the raw materials and finished products may adversely affect the supply and pricing of their products.

• The company is dependent on third parties for the distribution and marketing of its products.