Generic drugmaker Emcure Pharmaceuticals is gearing up for its Initial Public Offering (IPO), scheduled to launch on July 3, 2024. This move follows the approval from the Securities and Exchange Board of India (SEBI) on June 20, 2024.

Preliminary Steps and SEBI Approval

The preliminary filings by Emcure Pharmaceuticals were submitted to SEBI in December 2023.. The company received regulatory observations on June 10, 2024, paving the way for the IPO. As stated in the Red Herring Prospectus (RHP), the IPO will close on July 5, 2024, with bidding for anchor investors set for July 2, 2024.

IPO Structure and Pricing

Emcure Pharma IPO will consist of fresh issuance of equity shares worth Rs 800 crore and an Offer for Sale (OFS) of 1.14 crore equity shares by promoters and existing shareholders. For its forthcoming IPO, Emcure Pharmaceuticals Ltd. has set a price range of Rs 960–1,008 per share.

Offer for Sale (OFS) Participants

The OFS includes shares sold by promoter Satish Mehta and investor BC Investments IV Ltd, an affiliate of US-based private equity major Bain Capital. Other selling shareholders include:

• Sunil Rajanikant Mehta
• Namita Vikas Thapar
• Samit Satish Mehta
• Pushpa Rajnikant Mehta
• Bhavana Satish Mehta
• Kamini Sunil Mehta
• BC Investments IV
• Arunkumar Purshotamlal Khanna
• Berjis Minoo Desai
• Sonali Sanjay Mehta

Employee Reservation and Net Issue

The public issue includes a reservation of 1,08,900 equity shares for the company’s employees, who may receive these shares at a discount to the final offer price. The remaining funds will be designated for general corporate purposes.

Shareholding and Stake Distribution

Satish Mehta holds a 41.85% stake in the company, while BC Investments owns a 13.07% stake. Half of the net issue size has been reserved for qualified institutional buyers (including up to 60 percent for anchor investors), 35% for retail investors, and the remaining 15% for non-institutional investors (high net-worth individuals).

Use of IPO Proceeds

The pharmaceutical company, with a strong presence in India, Europe, and Canada, will use Rs 600 crore from the net fresh issue proceeds to repay debts, which amounted to Rs 2,091.9 crore as of March 2024. The remaining funds will be allocated for general corporate purposes.

Company’s Business Overview

Pune-based Emcure Pharmaceuticals develops, manufactures, and globally markets a broad range of pharmaceutical products across several major therapeutic areas.

Lead Managers and Listing

The book-running lead managers for the IPO are Kotak Mahindra Capital Company, Jefferies India, Axis Capital, and JP Morgan India. Emcure Pharmaceuticals’ equity shares are set to be listed on the BSE and NSE on July 10, 2024.

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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.