Summary :
The IPO consists of a fresh issue of up to Rs 1,100 crore by the company, which will be used as growth capital, and an offer for sale by promoter shareholders
Emcure Pharmaceuticals has received regulatory approvals for its draft red herring prospectus and will be filing the RHP for the Rs 5,000-crore initial share sale, according to reports.
The IPO will hit the market soon after the Budget and it consists of a fresh issue of up to Rs 1,100 crore by the company, which will be used as growth capital, and an offer for sale by promoter shareholders — founder, managing director & chief executive Satish Mehta who owns 41.92 per cent and by son Sunil Mehta who holds 6.13 per cent.
Emcure Pharmaceuticals has received regulatory approvals for its draft red herring prospectus and will be filing the RHP for the Rs 5,000-crore initial share sale, according to reports.
The IPO will hit the market soon after the Budget and it consists of a fresh issue of up to Rs 1,100 crore by the company, which will be used as growth capital, and an offer for sale by promoter shareholders — founder, managing director & chief executive Satish Mehta who owns 41.92 per cent and by son Sunil Mehta who holds 6.13 per cent
Other promoter groups/persons own 33.55 per cent, and global private equity major Bain Capital owns 13.09 per cent in the Pune-headquartered pharma major.
The company added that it will utilize Rs 947 crore from the proceeds of the issue to repay/prepay debt which as of March 2021 stood at Rs 1,252.6 crore, the reports said.
Emcure Pharmaceuticals is an Indian multinational pharmaceutical company headquartered in Pune, Maharashtra. Emcure’s product portfolio includes tablets, capsules and injectables.
Move from secondary market
The market watchers said that the 2021 trend of foreign portfolio investors selling stocks with high valuations, mainly in the finance sector, to reinvest in the primary market may spillover to retail investors and domestic institutional investors. With capital getting diverted to the primary sector, the secondary market may come under pressure, they added.
It may be recalled that several records were broken in the primary market in 2021. For the first time, two companies — Latent View Analytics and Paras Defence and Space Technologies — saw their IPOs subscribed over 300 times.
Global trend too
Experts pointed out that the IPO frenzy in 2021 was a global phenomenon. In fact, India benefited this. Globally, IPOs raised over $450 billion in 2021, 67 per cent over the previous year. India raised about $17 billion in 2021, the highest in two decades.
About Emcure Pharma
Emcure Pharmaceuticals is an Indian multinational pharmaceutical company headquartered in Pune, Maharashtra. Emcure’s product portfolio includes tablets, capsules (both Softgel capsules and hard-gel capsules) and injectables.
Emcure Pharmaceuticals Ltd. is a fast growing fully integrated Indian pharmaceutical company with global presence engaged in developing, manufacturing and marketing a broad range of pharmaceutical products globally. Our core strength lies in developing and manufacturing differentiated pharmaceutical products in-house, which we commercialize through our marketing infrastructure across geographies and relationships with multi-national pharmaceutical companies. Emcure is ranked 12th largest pharmaceutical company (Source: AIOCD Jan MAT 2017) in India in terms of market share based on the domestic sales of pharmaceutical products. Emcure believes that their competitive advantage in the domestic market lies in their established presence in all major therapeutic areas including blood related, cardiology, pain and analgesics, HIV, gynaecology, nephrology, anti-infective, and vitamins, minerals and nutrients products. We have also recently entered the oncology, diabetes & neuroscience therapeutic areas. Emcure has a well-diversified income base thanks to our business in the international markets. Emcure products are currently shipped to over 65 countries.
It has subsidiaries in Dubai, Brazil, South Africa, Singapore, Australia, Turkey, Peru and Nigeria and rep offices in Russia, Myanmar, Vietnam, Ghana, Kazakhstan and Morocco and established offices in US, UK and Canada. Emcure is working towards vast expansion in European Markets as well. Emcure’s focus our research and development efforts on developing a portfolio of differentiated products across several platforms, including chiral molecules and biosimilars, and novel drug delivery systems.
As per the IMS Health India, TSA for March 2016, Emcure is ranked 1st in Gynaecologicals, 1st in Blood related, 2nd in Oncology, 2nd in HIV, 6th in Hepatoprotectives, 10th in Cardiac, 11th in Anti-malarials and 15th in Anti-infectives therapy areas
USA – The company has a manufacturing facility and R&D center in East Brunswick, New Jersey, USA.