Emcure Pharma IPO to open on July 3: All you need to know before IPO opens for subscription

Emcure Pharmaceuticals Limited (Emcure Pharma IPO) is all set to open for subscription on July 3. The company intends to raise ₹1,952.03 crore from the market via the public issue of shares. Promoters Satish Mehta and Sunil Mehta jointly hold a 98.9% pre-issue stake in Emcure Pharmaceuticals and will be diluting their share via the IPO.

Emcure Pharma IPO offer size, lot size and minimum investment

Emcure Pharma’s public issue is a book-built issue valued at ₹1,952.03 crore. The pharma company’s public issue combines a fresh issue of 79 lakh shares aimed at raising ₹800 crore with an offer for sale of 1.14 crore shares amounting to ₹1,152.03 crore.

Emcure Pharma has reserved 50% of the net issue for Qualified Institutional Buyers, while 35% of the shares on offer are allocated to retail investors. As much as 15% of the net issue is reserved for Non Institutional Investors.

Retail investors, interested in applying for the Emcure Pharma IPO, can bid for a minimum of 1 lot comprising 14 shares, which aggregates to an investment of ₹14,112. Small non-institutional investors can place a bid for a minimum of 15 lots consisting of 210 shares amounting to ₹2,11,680. Big non-institutional Investors can bid for a minimum of 71 lots comprising 994 shares aggregating to an investment of ₹10,01,952.

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Emcure Pharma IPO subscription, allotment status and listing date

The bidding window for Emcure Pharma IPO will remain open from July 3 to July 5. The share allotment status of the public issue is likely to be decided by July 8. After this, the allotment refunds will be initiated for unsuccessful bidders and successful bidders will receive shares of Emcure Pharma IPO in their demat accounts on July 9. The shares are likely to list on the NSE and BSE on July 10.

Emcure Pharma IPO Financials

Emcure Pharma's revenue from operations for the fiscal year ended March 31, 2024, grew over 11% to ₹6,658 crore compared to ₹5,985 crore in the preceding fiscal. In FY24, the profit after tax (PAT) fell over 6% to ₹527.58 crore compared to ₹561.85 crore in FY23. The company reported a growth of 18% in its net worth as it surged to ₹2,952.28 crore compared to ₹2,501.13 crore in the preceding fiscal.

Emcure Pharma IPO strength

• The company is a maker of a wide range of pharmaceutical products, sold globally in 70 countries.
• Emcure Pharma enjoys a strong foothold in the European and Canadian markets.
• The company has a sound financial position and has reported profitable growth in the past three years.
• It is a leader in therapeutic areas like oncology, blood-related and HIV. Emcure is also the manufacturer of India's first homegrown mRNA vaccine, which is currently in the trial phase.

Emcure Pharma IPO risk

• The company is subject to extensive government regulations, and an inability to comply might affect its operations and finances.
• Has experienced negative cash and cash equivalents in FY22 and FY23, primarily due to its borrowings.
• Faces competition from Dr. Reddy’s Laboratories, Cipla, Alkem Laboratories, Torrent Pharmaceuticals, Mankind Pharma, Abbott India, and J.B. Chemicals & Pharmaceuticals.

About Emcure Pharma IPO

The Pune-based firm Emcure Pharmaceuticals is engaged in developing, manufacturing, and globally marketing a broad range of pharmaceutical products across several major therapeutic areas. The company was established in 1981. It currently employs 552 scientists and operates five research facilities in India, as of September 30, 2023. It has 13 manufacturing facilities in India.

Emcure Pharma will use the money raised via the fresh issue of shares in the public issue to settle its borrowings. A part of the proceeds from the IPO will also be used for general corporate purposes.

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