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Introduction and IPO Details
The Emcure Pharma IPO is a book-built issue amounting to Rs 1,952.03 crores. It consists of a fresh issue of 0.79 crore shares, valued at Rs 800.00 crores, and an offer for sale of 1.14 crore shares, valued at Rs 1,152.03 crores.
Subscription for the Emcure Pharmaceuticals IPO will commence on July 3, 2024, and will conclude on July 5, 2024. The Emcure Pharmaceuticals IPO allotment is anticipated to be completed on Monday, July 8, 2024. The IPO is scheduled to be listed on the BSE and NSE with a tentative date of Wednesday, July 10, 2024.
Emcure Pharma’s IPO share price band ranges from Rs 960 to Rs 1008 per share. For an application, the minimum lot size is 14 shares. Retail investors are required to invest a minimum of Rs 14,112. Meanwhile, the minimum lot size investment for Small NII – High net worth individuals (sNII) is 15 lots (210 shares), amounting to Rs 211,680, and for Big NII – High net worth individuals (bNII), it is 71 lots (994 shares), amounting to Rs 10,01,952.
The book-running lead managers for the Emcure Pharma IPO are Kotak Mahindra Capital Company Limited, Jefferies India Private Limited, Axis Capital Limited, and J.P. Morgan India Private Limited. Further, Link Intime India Private Ltd is the registrar for the issue.
About the Company
Emcure Pharmaceuticals Limited was incorporated in the year 1981 by Mr. Satish Ramanlal Mehta, Emcure Pharmaceutical’s Founder and Owner. Emcure Pharmaceuticals Limited is one of the leading pharmaceutical companies in India. The company manufactures, develops, and markets various ranges of pharmaceutical products in India and abroad. The company has established its presence in over 70 countries worldwide. The Company’s product portfolio for R&D includes orals, injectables, and biotherapeutics. Emcure Pharma’s portfolio consists of pharmaceutical products in chronic (including sub-chronic) therapeutic areas which include gynaecology, cardiovascular, vitamins, minerals and nutrients, HIV antivirals, blood-related, and oncology/antineoplastic.
Emcure Pharmaceuticals Limited was ranked 13th in domestic sales among Indian pharmaceutical companies for MAT September 2023. It was also ranked 4th in market share in its covered markets. Sales in India comprised 50.84% and 53.16% of the company’s total revenue in the six months ending September 2023 and the financial year 2023, respectively. This shows the company’s economic stability and strong market presence in India.
Emcure Pharma’s domestic sales grew at a rate of 10.80% from September 2019 to September 2023, outperforming the Indian pharmaceutical market. As of September 30, 2023, the company had 552 scientists and operated five research facilities in India. It had filed over 1,800 documents, including 204 in the EU and 133 in Canada.
Emcure Pharmaceuticals also had 201 granted patents, 33 pending patent applications, and 102 drug master files submitted, showing its strong research and development capabilities. Emcure Pharma has 13 manufacturing facilities in India, producing various pharmaceutical and biopharmaceutical products.
Over 5,000 field personnel regularly interacted with healthcare providers to support the company’s marketing and distribution network in India. As of September 30, 2023, the distribution network had over 5,000 stockists served by 37 carry-and-forward agents.
Objectives of the Emcure Pharma IPO
The Net Proceeds are aimed to be used for the following purposes by the company:
1. Repayment and prepayment of all or a portion of certain outstanding borrowings availed by the Company to reduce its overall debt obligations.
As of March 31, 2024, the Company’s total outstanding borrowings were Rs 2,09,194 lakhs on a consolidated basis.
2. Allocation towards general corporate purposes, which will include the following –
a) Supporting both organic growth and growth through acquisitions
b) Strengthening marketing and building their brand
c) Investing in their subsidiary companies
d) Addressing general corporate needs as they arise
e) Any other purpose approved by our Board or a designated committee, as long as it complies with the Companies Act and applicable law
Financials of the Emcure Pharma IPO
a) Financials from the Profit & Loss account for the last three financial years, ended March 31, 2022, March 31, 2023, and March 31, 2024.
| Particulars (in Rs. Crores) | FY24 | FY23 | FY22 |
| Revenue from operations | 6658.25 | 5985.81 | 5855.38 |
| EBITDA | 1276.78 | 1220.94 | 1393.38 |
| PAT | 527.57 | 561.84 | 702.55 |
b) Financials from the Balance Sheet for the last three financial years, ended March 31, 2022, March 31, 2023, and March 31, 2024.
| Particulars (in Rs. Crores) | FY24 | FY23 | FY22 |
| Total Assets | 7806.16 | 6672.53 | 6063.46 |
| Share Capital | 181.15 | 180.85 | 180.85 |
| Total Borrowings | 4684.39 | 4022.87 | 3949.32 |
c) Financials from the Cash Flow Statement for the last three financial years, ended March 31, 2022, March 31, 2023, and March 31, 2024.
| Particulars (in Rs. Crores) | FY24 | FY23 | FY22 |
| Net cash generated from / (used in) operating activities | 1097.24 | 746.85 | 768.2 |
| Net cash from / (used in) investing activities | -712.51 | -467.68 | -788.79 |
| Net cash flow from / (used in) financing activities | -164.2 | -145.39 | -151.85 |
| Net increase (decrease) in cash and cash equivalents | 220.52 | 133.77 | -172.43 |
Details of Emcure Pharma IPO GMP
Emcure Pharma IPO’s latest Grey Market Premium (GMP) is Rs 290, last updated on July 2, 2024, at 11:10 AM. Based on the GMP and the price band of 1008.00, the estimated listing price is Rs 1298.
The expected percentage gain/loss per share is 28.77%. For Emcure Pharma’s IPO, the Retail Subject to Sauda is Rs 3100, while the Small HNI Subject to Sauda is yet to be determined.
Today’s IPO GMP indicates an upward trend based on the last six grey market sessions, with the lowest GMP recorded as Rs 0 and the highest as Rs 290.
Frequently Asked Questions (FAQs)
What are the Emcure Pharma IPO strengths?
The Company’s strengths include its strong position in the domestic market, diversified international product portfolio, robust R&D capabilities, extensive manufacturing capacity, and experienced management team and Board.
What are the major risks associated with Emcure Pharma IPO?
- Profit after tax (PAT) has decreased over the last few years.
- Working capital requirements are high.
- Emcure Pharma has to follow extensive rules and regulations in India and in the international markets, which are subject to change.
What are the minimum and maximum lot sizes in Emcure Pharma IPO?
The minimum and maximum lot sizes in Emcure Pharma IPO are listed below:
- For Retail (Min), the lot size is 1, total Shares are 14, which amounts to Rs 14,112
- For B-HNI (Min), the Lot size is 71, total shares are 994, which amounts to Rs 1,001,952
What are the Emcure Pharma IPO reservation categories for different investors?
- For QIB investors, shares offered should not be more than 50% of the Net Issue
- For Retail investors, shares offered should not be less than 35% of the Net Issue
- For NII (HNI) investors, shares offered should not be more than 15% of the Net Issue
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Disclaimer: Investing in the Equity market in India is subject to risks, i.e. the market keeps on fluctuating. This article is purely for educational purposes. The views expressed and data provided here are by Equitypandit’s team. Kindly do not completely depend on the information provided as the risk appetite differs from individual to individual and there are various other factors in the market to determine the factors to invest in the market.
