Namita Thapar is set to earn good returns from Emcure Pharmaceuticals’ upcoming IPO. According to the company’s red herring prospectus, Thapar will earn a 293-fold return on her initial investment by partially offloading her stake.
At the upper end of the price band, Thapar will see her investment multiply 293 times. The price band for Emcure Pharmaceuticals is set between Rs.960 and Rs.1,008 per share. Thapar, who holds 6,339,800 shares (3.5% stake) in Emcure, acquired her shares at a weighted average cost of Rs.3.44 per share. Her total investment stands at Rs.2.18 crore as she plans to sell 1,268,600 shares in the offer-for-sale (OFS), expected to yield around Rs.127 crore.
Promoter Satish Ramanlal Mehta, owning 75,816,748 shares (41.85% stake), will also participate in the OFS, offering up to 420,000 shares. At the upper price band, Mehta will make 52 times his original investment. BC Investments IV and several other individual shareholders will also offload shares in the OFS.
The IPO, set to launch from July 3 to July 5, 2024, includes a fresh equity issuance worth Rs.800 crore and an OFS of 1.14 crore shares. The IPO price range is Rs.960 to Rs.1,008 per share, with a total issue size of Rs.1,952.03 crore at the upper price band. The minimum order quantity is 14 shares, with retail investors able to apply for up to 196 shares.
| Event | Date/Detail |
| IPO Opening Date | July 03, 2024 |
| IPO Closing Date | July 05. 2024 |
| Face Value | Rs 10 per equity share |
| IPO Price | Rs 960 to Rs 1,008 per equity share |
| Min Order Quantity | 14 shares |
| Total Issue | 19,365,346 shares of FV Rs 10* (Aggregating up to Rs 1,952.03 Cr) |
| Fresh Issue | 7,936,507 shares of FV Rs 10* (Aggregating up to Rs 800 Cr) |
| Offer for Sale | 11,428,839 shares of FV Rs 10* (Aggregating up to Rs 1,152.03 Cr) |
The fresh issue’s net proceeds will be allocated for debt repayment and general corporate purposes along with leveraging the funds for operations and financial restructuring.
Conclusion: In conclusion, Thapar, by selling her stake, will earn a staggering 293x return from Emcure Pharmaceuticals’ IPO, selling 1,268,600 shares at the upper price band. Emcure’s market presence, product range, and debt reduction plans make this IPO a worth watching one. With a total issue size of Rs.1,952.03 crore and valuation metrics, this offering looks ready for the market.
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.
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
