Founded in 1983, Emcure Pharmaceuticals manufactures and globally markets a wide variety of pharmaceutical products. It has filed its draft red herring prospectus (DRHP) with the Securities Exchange Board of India (SEBI) to raise funds through an IPO (initial public offering). The company is aiming to raise ₹4,000 crore through this IPO.
The Pune-based company is the 12th largest pharmaceutical company in India. As per the CRISIL report FY21, Emcure Pharmaceutical Limited is a leader (as per sales numbers) in three therapeutic areas: gynaecology, blood-related and HIV antivirals.
The company is acknowledged for its diverse product portfolio, including injectables, orals and biologics. The company also has a Messenger RNA (mRNA) platform, which is currently developing a COVID-19 vaccine.
With a globally diversified empire, including 19 subsidiaries, 500 scientists and 11,000 employees, the pharma giant IPO aims to encash the growing potential of the pharmaceutical sector.
Here is everything you should know about the Emcure Pharmaceuticals IPO details:
Reportedly, the offer for sale shares will include shares of existing shareholders, promoters, promoter group and other investors. Promoters, namely Satish Mehta and Sunil Mehta, who cumulatively currently own a 48.5% stake in the company, will sell 20.30 lakh and 2.5 lakh shares, respectively. Private equity investor Bain Capital, which holds a 13.09% stake in the company, will sell 99.5 lakh shares. Other shareholders are likely to sell 22 lakh shares.
The company shares will be listed at BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).
|QIB (Qualified Institutional Buyers)||50%|
Emcure Pharmaceutical aims to utilise its IPO proceeds for:
If you are eyeing the Emcure Pharmaceutical Limited IPO, understand the company’s fundamentals:
The company has been profitable for the last three years: FY21, FY20 and FY19. Between FY19 and FY21, the net profit rose by a CAGR of 41%. The total revenue was up 12.5% during the same period.
Emcure Pharmaceuticals is one of the leading pharmaceutical companies in India. Since its inception in 1981, the company has targeted to provide quality healthcare solutions by leveraging advanced scientific strengths.
Emcure has a presence in over 70 countries, including India, Canada, and the US. The major therapeutic areas where the company develops, manufactures, and markets its pharmaceutical products are as follows:
Owing to the recent pandemic-induced focus on healthcare and related products, the pharmaceutical industry in India is booming. There is high investor interest, and companies have been deploying consistent efforts to ride on the sector boom.
Further, the sedentary lifestyle, growing threat of critical ailments, ageing population and new product launches have tremendously contributed to the growth of the pharmaceutical sector in India and across the globe.
With solid financials and interesting future product launches, Emcure Pharma IPO is a much-awaited one. However, with five other pharmaceutical companies launching their IPO this year, the competition in the stock market is likely to intensify.