Emcure Pharmaceuticals IPO: Things an Investor Should Know

Emcure Pharmaceuticals IPO is offering a 100% book-built public issue. This upcoming IPO is offering a fresh issue worth Rs 800 crores of shares and up to 1.37 crores of equity shares as an offer for sale. The face value is reported as Rs. 10 for each share. This new IPO issue is being made through the book-building process with a reservation of not more than 50% of the new offer is reserved for Qualified Institutional Investors, not less than 15% reserved for Non-Institutional Investor and the rest 35% or more is reserved for Retail Individuals. Public issue subscription opening and closing date and other important dates will be announced soon.

About the Company

Emcure Pharma is a prominent Indian pharmaceutical enterprise engaging in the advancement, production, and worldwide promotion of a diverse array of pharmaceutical solutions in a numerous significant therapeutic domain. Emcure Pharma is a research and development (“R&D”) driven Company with a various differentiated product portfolio that includes orals, injectables and biotherapeutics, which has enabled us to reach a large range of targeted markets across over 70 countries, with a strong presence in India, Europe and Canada. They were ranked as (i) the 13th largest pharmaceutical Company in India in terms of Domestic Sales for MAT September 2023, (ii) the 4th largest pharmaceutical Company by market share in our Covered Markets in terms of Domestic Sales for MAT September 2023, and (iii) the largest pharmaceutical Company in the gynecology and human immunodeficiency virus (“HIV”) antivirals therapeutic areas in India in terms of Domestic Sales for MAT September 2023 (Source: CRISIL Report). Emcure is led by Promoters with significant experience in the pharmaceutical industry who are supported by a strong professional management team.

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Objectives of the Public Offering

Emure Pharma intend to utilize a portion of the Net Proceeds for prepayment of two external commercial borrowings from Axis Bank Limited, which had a total outstanding amount of ₹11.69 Crore as of September 30, 2023. The loan provided by Axis Bank Limited to the Company was provided as part of their ordinary course of lending 73 business.

Financials of the Company

The Company reported net revenue of Rs 6031.72 Crore, Assets worth Rs 6672.53 Crore and Profit After Tax is reported Rs 561.85 Crore for the year ended March 31, 2023. If we look at the Company's sales statistics, we can see that it has experienced rapid growth in India in recent years. The Company’s sales in India contributed 50.84% and 53.16% of their total revenue from operations for the six months ended September 30, 2023 and the Financial Year 2023, respectively.

Lead Manager, Registrar & Promoter of Public Offering

The IPO is managed by Kotak Mahindra Capital Company Limited, Axis Capital Limited, Jefferies India Private Limited, and J. P. Morgan India Private Limited, which is the book-running lead manager. Link Intime India Private Limited has been appointed as the registrar for the issue. The promoters of the Company are Satish Ramanlal Mehta and Sunil Rajnikant Mehta. The listing will be on National Stock Exchange (NSE) &  the Bombay Stock Exchange (BSE).

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