Global Pharma Supplier Emcure hits IPO: To Be Listed on NSE AND BSE The offer will comprise of a fresh issue of 79 Lakh shares which will raise close to INR 800 Crores. The price band is set at INR 960-1008 per share.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Emcure Pharma, a global pharmaceutical supplier based in Pune, Maharashtra has announced its Initial Public Offering (IPO) valued at INR 1952.03 Crore. The offer will comprise of a fresh issue of 79 Lakh shares which will raise close to INR 800 Crores. The price band is set at INR 960-1008 per share.
Firm's promoters Satish Ramanlal Mehta, Samit Satish Mehta, and Sunil Rajanikant Mehta will offload their stakes through the Offer for Sale (OFS) in exception to the Namita Thapar, Emcure's full-time director.
Managing Director of Emcure Satish Ramanlal Mehta is the largest shareholder and currency controls 75,816,748 shares equating to 41.85% stake in the company before the issue and will give up close to 4.3 lakh equity shares via the OFS process.
Similarly, Promoter Samit Satish Mehta, owner of a 7.48% stake in Emcure is reported to sell 10,000 shares while Sunil Rajanikant Mehta will offload 40,000 shares.
Notably, Namita Thapar, who featured in Shark Tank India as a judge and owned around 63 lakh shares, or a 3.5% stake in the company. will reportedly earn over INR 127.87 Crore due to the Emcure IPO. Namita will sell close to 12.68 lakh shares at the upper band of INR 1008 through OFS.
According to Upstox, the Shark Tank India fame investor acquired these shares at a weighted average price of INR 3.44 per piece, which means she will earn a return of nearly 294 times on her investments.
Emcure's IPO subscription is said to be live between the 3rd and 5th of July and the company announced that the retail investors can submit bids for a minimum of 1 lot size of 14 shares, which will then aggregate to a sum total investment of INR 14,112 at the upper end of the price band. As much as 108,900 equity shares in the IPO have been reserved for its employees.
The pharma company backed by investors such as Bain Capital and Blackstone has also raised INR 583 Crores from anchor investors before its opening for public subscription. The anchor book is said to include HDFC Mutual Fund, ICICI Prudential MF, SBI MF, Nippon India MF, Abu Dhabi Investment Authority, Goldman Sachs Asset Management, Nomura, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company and SBI Life Insurance Company.
Emcure's market capitalization is reported to be valued at over INR 19000 Crore post-IPO.
Upstox, the tech-first discount broking firm reported that the IPO share allotment status is expected to be finalized on the 8th of July, and the IPO listing date has been fixed on the 10th of July which will then be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
Axis Capital Limited, JP Morgan India Private Limited, Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited are said to be the book-running managers of the IPO.
Regarding the pharma market, India is the largest provider of generic medicines globally, occupying a 20% share of global supply by volume and India is one of the biggest suppliers of low-cost vaccines globally. India accounts for 60% of global vaccine production, contributing up to 70% of the WHO demand, according to Invest India.
