Emcure Pharma IPO subscribed nearly 5 times on Day 2; check details

The initial public offering (IPO) of Bain Capital-backed Emcure Pharmaceuticals was booked nearly five times on Thursday, July 4, when the issue was open for subscription on the second day.

Bids for a total of 6.81 crore shares were received, as against 1.37 crore shares on offer, as per the consolidated data shared by the National Stock Exchange (NSE) at 05:00 pm.

The subscription was driven by non-institutional investors (NIIs), who booked 13.67 times their allotted portion. The NIIs have cumulatively placed bids for 4.03 crore shares so far, as against 29.5 lakh on offer.

The portion reserved for retail investors has been booked 3.63 times so far. They have cumulatively placed bids for 2.36 crore shares, as against 68.82 lakh on offer.

The qualified institutional investors, who had till yesterday booked less than 10% of their allotted quota, have now almost fully subscribed to their reserved portion. They have cumulatively placed bids for 37.5 lakh shares, marginally lower as compared to 37.62 lakh on offer.

The last date for subscription is Friday, July 5. The allotment status will be finalised on either Saturday, July 6 or Monday, July 8, reports said. The listing is expected on Wednesday, July 10.

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What's the latest GMP?

This means that the grey market is reportedly expecting the company's shares to list at ₹1,341 (GMP + upper IPO price band of ₹1,008), which will be 33% higher as against the issue price.

Emcure Pharma IPO details

The IPO, launched with a price band of ₹960 to ₹1,008 per share, comprises fresh issuance of equity shares worth ₹800 crore and an offer of sale (OFS) of 1.14 crore equity shares to the tune of ₹1,152 crore. This aggregates the total public issue size to ₹1,952 crore.

Those selling shares in the OFS include promoter Satish Mehta and investor BC Investments IV Ltd, an affiliate of US-based private equity major Bain Capital. Currently, Satish Mehta holds a 41.85% stake in the company and BC Investments owns a 13.07% stake.

Proceeds of the fresh issue will be used towards payment of debt and for general corporate purposes.

Emcure Pharma on Tuesday said it has garnered ₹583 crore from anchor investors ahead of the IPO.

The Pune-based pharmaceuticals company, which has Shark Tank India fame Namita Thapar among its board of directors, is engaged in developing, manufacturing, and globally marketing a broad range of pharmaceutical products across several major therapeutic areas.

Kotak Mahindra Capital Company, Jefferies India, Axis Capital, and JP Morgan India are the book-running lead managers to its issue. The equity shares of the company will list on the BSE and the NSE.

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