Emcure Pharmaceuticals Lists at 31% Premium at Rs 1325 per share on BSE!

Emcure Pharmaceuticals Limited, an Indian firm, that specializes in the development, manufacturing, and worldwide distribution of a diverse range of pharmaceutical products spanning multiple key therapeutic categories, debuted on the Indian stock market today.

The company’s stock settled at Rs 1325.05 per share on the BSE, representing an impressive 31.45% premium over the final issue price of Rs 1008 per share. Additionally, on the NSE, the company’s shares opened at Rs 1325.05 per share, indicating a gain of 31.45%. The market capitalization on the BSE stands at around Rs 25756.14 crore.

IPO Proceeds 

The Company proposes to utilise the Net Proceeds towards funding the following objects: Repayment or prepayment of all or a portion of certain outstanding borrowings availed by the company; and General corporate purposes

Business Overview

Incorporated in 1981, Emcure Pharmaceuticals Limited, an Indian firm, specializes in the development, manufacturing, and worldwide distribution of a diverse range of pharmaceutical products spanning multiple key therapeutic categories.

As of September 2023, Emcure Pharmaceuticals ranks 13th in domestic sales among Indian pharmaceutical companies and holds the 4th position in market share across its covered markets. Notably, it leads the industry in gynecology and HIV antiviral therapies for the same period.

Subscription details 

As of July 5, 2024, the IPO was subscribed 67.87 times. The public issue saw a subscription rate of 7.36 times in the retail category, 191.24 times in the QIB category, and 49.32 times in the NII category.

The IPO price band was Rs 960 and Rs 1008, with a face value of Rs 10 per share and a lot size of 14 shares. The total size of the company’s IPO was Rs 1952.03 crore, and the final share issue price was fixed at Rs 1008 each.

Conclusion 

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 31% on the listing day itself and can choose to book the profit generated or watch for at least the first 15 minutes and then set a stop-loss at the day’s low price. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.