Emcure Pharmaceuticals IPO sets price band at ₹960-1,008 apiece; Namita Thapar to offload stake partially

Emcure Pharmaceuticals IPO price band: The Emcure Pharmaceuticals Limited IPO price band has been set in the range of ₹960 to ₹1,008 per equity share of the face value of ₹10. The Emcure Pharmaceuticals IPO date of subscription is scheduled for Wednesday, July 3, and will end on Friday, July 5. The allocation to anchor investors for the Emcure Pharmaceuticals IPO is scheduled to take place on Tuesday, July 2.

The floor price and the cap price are 96 times and 100.80 times the face value of the equity shares respectively. Bids can be made for a minimum of 14 equity shares and in multiples of 14 equity shares thereafter. A discount of ₹90 per equity share is being offered to eligible employees bidding in the employee reservation portion.

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Emcure Pharma IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. Employee portion has been reserved up to 108,900 equity shares.

Tentatively, Emcure Pharma IPO basis of allotment of shares will be finalised on Monday, July 8, and the company will initiate refunds on Tuesday, July 9, while the shares will be credited to the demat account of allottees on the same day following refund. Emcure Pharma share price is likely to be listed on BSE and NSE on Wednesday, July 10.

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The firm is an Indian pharmaceutical manufacturer that creates, produces, and markets a wide range of pharmaceutical products internationally in many therapeutic areas. With a unique product portfolio that comprises injectables, biotherapeutics, and orals, this research and development (R&D)-driven firm has reached a wide variety of target markets in over 70 countries, with a significant presence in Europe, Canada, and India.

As per the Red herring prospectus (RHP), the company’s listed peers are Dr. Reddy’s Laboratories Ltd (with a P/E of 17.93), Cipla Ltd (with a P/E of 30.10), Alkem Laboratories Ltd (with a P/E of 33.86), Torrent Pharmaceutical Ltd (with a P/E of 57.74), Mankind Pharma (with a P/E of 45.30), Abbott India Ltd (with a P/E of 47.43), J. B. Chemicals & Pharmaceutical Ltd (with a P/E of 50.49).

Between March 31, 2024, and March 31, 2023, Emcure Pharmaceuticals Limited’s profit after tax (PAT) decreased by -6.1% while its sales climbed by 11.33%.

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Emcure Pharmaceuticals IPO details

The IPO comprises of a fresh offering of ₹800 crore and an offer by existing promotersand shareholders to sell ₹1,151 crore. The value of the issue size at the top of the price band is ₹1,952 crore.

The selling shareholders in the OFS include promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta.

Furthermore, shares in the OFS will be offloaded by Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, and Sonali Sanjay Mehta, in addition to BC Investments IV.

The book running lead managers for the Emcure Pharma IPO are Axis Capital Limited, J.P. Morgan India Private Limited, Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited. The registrar for the offering is Link Intime India Private Ltd.

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