About Emcure Pharmaceuticals IPO
Incorporated in 1981, Emcure Pharmaceuticals Limited is an Indian pharmaceutical company that develops, manufactures, and markets pharmaceutical products across several major therapeutic areas.
As of FY24, the company is ranked as the 13th largest pharmaceutical company in India in terms of domestic sales, the 4th largest pharmaceutical company by market share in its covered markets, and the largest pharmaceutical company in the gynaecology and HIV antiviral therapeutic areas.
Its product portfolio includes orals, injectables and biotherapeutics across major therapeutic areas such as gynaecology, cardiovascular, vitamins, minerals and nutrients, HIV antivirals, blood-related, and oncology/antineoplastics.
Emcure Pharmaceuticals operates 13 manufacturing facilities across India with a focus on research and development. As of 31 March 2024, it has five dedicated R&D facilities in India, with a team of 548 qualified scientists. It has also been granted 220 patents and filed over 1,800 dossiers globally.
The company sells its products in more than 70 countries with the help of its front-end distribution capabilities, and by focusing on alliances with local and multinational companies. For FY24, around 48.2% of total sales came from domestic markets, while the remaining 51.7% of sales from outside India.
Between FY22 and FY24, it saw a CAGR rise of 4% in its revenue from operations. Meanwhile, its net profits have been volatile, with net profit of ₹702 crore in FY22 to ₹527 crore in FY24. However, the Indian domestic formulation market is expected to grow at a CAGR of 8% to 9% between FY24 and FY29, which could benefit the company.
And now, Emcure Pharmaceuticals Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹1,952.03 crore, comprising fresh issue, aggregating to ₹800 crore, as well as an offer for sale, aggregating to ₹1,152.03 crore. The money raised from the fresh issue will be utilised for the repayment of borrowings and general corporate purposes. Its shares will be listed on the NSE and BSE.
Here are key details about the Emcure Pharmaceuticals IPO:
| Company Name | Emcure Pharmaceuticals IPO Limited | | Company Type | Private |
|---|
| Company Established On | 1981 | | | |
Financial snapshot
| Particulars | FY22 | FY23 | FY24 |
|---|
| Revenue | ₹ 5,855 crore | ₹ 5,985 crore | ₹ 6,658 crore |
| Net Profit | ₹ 702 crore | ₹ 561 crore | ₹ 527 crore |
---|
Here’s a quick look at Emcure Pharmaceuticals IPO’s strengths, weakness, opportunities and risks (SWOT analysis)
Strengths and opportunities
- The company is well-positioned in the domestic market. For several of its molecules across therapeutic areas, it was ranked first with a market share of over 50%.
- Demonstrated capabilities of building brands as 16 of its top 20 brands were each ranked among the three highest-selling brands in their respective therapeutic areas in the IPM, in terms of domestic sales in FY24.
- It has a fast-growing presence in international markets, with Europe and Canada currently being its primary international markets. Sales outside India contributed to 51% of its total revenue as of FY24.
- Strong R&D capabilities with an R&D expenditure of ₹309 crore in FY24.
- Extensive manufacturing facilities are located in the states of Maharashtra, Gujarat, Sikkim, Karnataka, and the union territory of Jammu and Kashmir.
Risks and threats
- Subject to extensive government regulations, an inability to comply might affect its operations and finances.
- Operates a capital-intensive business with working capital requirements amounting to ₹2,370 crore in FY24.
- Dependent on third parties for the distribution and marketing of its products and none of such third-party agreements have contributed materially to its revenue from operations for the past three financial years.
- Has experienced negative cash and cash equivalents in FY22 and FY23, primarily due to its borrowings.
- International operations expose it to complex management, legal, tax and economic risks, which could adversely affect its business.
- It is subject to risks associated with exchange rate fluctuations, as 51% of its sales came from outside India in FY24.
- Faces competition from Dr. Reddy’s Laboratories, Cipla, Alkem Laboratories, Torrent Pharmaceuticals, Mankind Pharma, Abbott India, and J.B. Chemicals & Pharmaceuticals.
Emcure Pharmaceuticals IPO details
**** Emcure Pharmaceuticals IPO date
According to the offer document filed by the company with the SEBI, the Emcure Pharmaceuticals IPO’s opening date – in other words, the Emcure Pharmaceuticals IPO launch date – will be 3rd July 2024. The Emcure Pharmaceuticals IPO closing date is 5th July 2024. After this, investors will be updated about the allotment status on 8th July 2024.
Investors who have been allotted shares can expect them to be credited to their demat account on 9 July 2024. The Emcure Pharmaceuticals IPO listing date is 10 July 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.
**** Emcure Pharmaceuticals IPO Price Band
The IPO is a fresh issue and an offer for sale. The Emcure Pharmaceuticals IPO price band has been set between ₹960 and ₹1,008 per share. Interested investors can choose a price within this band to apply for the IPO.
The Emcure Pharmaceuticals IPO listing price will be determined on 10th July 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.
**** Emcure Pharmaceuticals IPO Lot size
The Emcure Pharmaceuticals IPO details have been declared. The Emcure Pharmaceuticals IPO lot size is set at 14 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Emcure Pharmaceuticals IPO issue size is approx ₹1,952 crore.
How to pre-apply for the Emcure Pharmaceuticals IPO?
You can pre-apply for the Emcure Pharmaceuticals IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.
Follow these steps to pre-apply for the IPO:
- Login to your Upstox account, using your six-digit PIN
- After successfully logging in, click on ‘Discover’
- On the Discover tab, you will find the ‘Invest in IPO’ section
- Under the Invest in IPO section, look for the ‘Emcure Pharmaceuticals IPO’ tab and click on it
- Now fill in all the required information, like ‘bid price’ and ‘lot size’
- Confirm and click on ‘Pre-Apply’
- Accept the mandate on your UPI app
How to apply for the Emcure Pharmaceuticals IPO?
If you are interested in this investment opportunity but unsure how to apply for the Emcure Pharmaceuticals IPO, here we are listing out the steps for you.
When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Emcure Pharmaceuticals IPO on Upstox:
- Login to your Upstox account, using your six-digit PIN
- After successfully logging in, click on ‘Discover’
- On the Discover tab, you will find the ‘Invest in IPO’ section
- Under the Invest in IPO section, look for the ‘Emcure Pharmaceuticals IPO’ tab and click on it
- Now fill in all the required information, like ‘bid price’ and ‘lot size’
- Confirm and click on ‘Apply’
- Accept the mandate on your UPI app
How to check the Emcure Pharmaceuticals IPO allotment status?
When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.
Here’s a step-by-step guide on how to check the Emcure Pharmaceuticals IPO allotment status:
- Login to your Upstox account, using your six-digit PIN
- After successfully logging in, click on ‘Discover’
- On the Discover page, you will find the ‘Invest in IPO’ section
- Under the Invest in IPO section, you will find the ‘View all’ option
- Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
- In the ‘IPO’ tab, click on ‘My applications’
- In ‘My applications’, under the History section, your Emcure Pharmaceuticals IPO allotment status will be mentioned
Check Allotment Status
Open a demat account with Upstox to apply for the Emcure Pharmaceuticals IPO
To apply for the Emcure Pharmaceuticals IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.
Here is a step-by-step guide on how to open a demat account with Upstox:
- Click here to visit the demat account opening page on the Upstox website.
- Enter your phone number and other essential details to begin opening a demat account.
- Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.
- Complete the e-verification using the OTP sent to your registered mobile number.
This is all it takes to open a demat account with Upstox. Easy and quick, right?
Open Demat Account
Upstox – trading app to apply for the Emcure Pharmaceuticals IPO
Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.
You can apply for the Emcure Pharmaceuticals IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.
In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.
