Namita Thapar's Emcure Pharmaceuticals IPO opens for subscription: Check timeline and key details

Emcure Pharmaceuticals IPO (initial public offering) opened for subscription on Wednesday, July 3. The issue, which has set a price band of ₹960 to ₹1,008 per share, will conclude on July 5.

The ₹1,952-crore IPO is a mix of fresh issuance of shares worth ₹800 crore and an offer for sale (OFS) component of 1.14 crore equity shares, aggregating to ₹1,152 crore by promoters and existing shareholders.

Investors offloading their stakes in the OFS include promoter Namita Thapar, Satish Mehta and BC Investments IV Limited, an affiliate of United States-based private equity giant Bain Capital.

On Tuesday, Emcure Pharma raised ₹583 crore in the anchor round from investors, including ICICI Prudential MF, HDFC Mutual Fund, SBI MF, Abu Dhabi Investment Authority, Nippon India MF, Goldman Sachs Asset Management, HDFC Life Insurance Company, Nomura, SBI Life Insurance Company and ICICI Prudential Life Insurance Company.

The pharmaceuticals company allotted 57.8 lakh equity shares to 48 funds at ₹1,008 per scrip worth ₹582.6 crore, as per the circular uploaded on the BSE's website.

The proceeds from the issue will be utilised for debt repayment and general corporate purposes.

Emcure Pharmaceuticals IPO: Timeline

• Bidding dates: July 3 to July 5
• Allotment finalisation: July 8
• Refund initiation: July 9
• Demat transfer: July 9
• Listing: July 10

About Emcure Pharmaceuticals

Pune-based firm Emcure Pharmaceuticals is involved in developing, manufacturing, and marketing a wide range of pharmaceutical products across multiple major therapeutic areas.

The company has reserved up to 1,08,900 shares in the IPO for employees. Half of the public offer is reserved for qualified institutional investors (QIBs), 15% for non-institutional investors and 35% for retail individual investors.

An interested investor can bid for at least 14 shares and in multiples thereafter.

Jefferies India, Kotak Mahindra Capital Company, JP Morgan India, and Axis Capital are the issue's book-running lead managers.

Strengths and opportunities

• Well-positioned in the domestic market
• Demonstrated capabilities in building brands with 16 of its top 20 brands ranked among the three highest-selling in their therapeutic areas based on domestic sales in FY24
• Increasing presence in international markets
• Strong research and development capabilities with ₹309 crore R&D expenditure in FY24
• Several manufacturing facilities located in Maharashtra, Sikkim, Gujarat, Karnataka, and Jammu and Kashmir

Risks and threats

• Subject to extensive government regulations
• High working capital requirement
• Depends on third parties for marketing and distribution of its products
• Has experienced negative cash and cash equivalents earlier
• Subject to risks linked with exchange rate fluctuations, as over 50% of its sales come from outside India in FY24.
• Faces competition from Cipla, Dr Reddy's Laboratories, Alkem Laboratories, Mankind Pharma, Torrent Pharmaceuticals, JB Chemicals & Pharmaceuticals and Abbott India