Investor response to Emcure Pharmaceuticals IPO on the second bidding day was overwhelmingly positive, with the market as a whole being robust. The offering has flowed quite well thanks to the enthusiasm shown by non-institutional investors, individual investors, and qualified institutional buyers.
The Pune-based company Emcure Pharmaceuticals is involved in the research, development, production, and international marketing of a wide range of pharmaceutical products in several important therapeutic areas. The public subscription period for the offering, which has a price range of ₹960 to ₹1,008 per share, began on July 3 and will end on July 5.
Along with new equity shares valued at ₹800 crore, promoters and present shareholders will issue 1.14 crore equity shares at the higher end of the price band for ₹1,152 crore in the IPO.
The overall size of the public increases to ₹1,952-crore as a result. Investors BC Investments IV Ltd, a branch of US-based private equity company Bain Capital, and promoter Satish Mehta are selling shares in the OFS. The new issuance's profits will be used for both debt repayment and general business operations.
Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.
The promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta are among the selling shareholders in the OFS.
In addition, BC Investments IV, Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, and Sonali Sanjay Mehta will sell shares in the OFS.
The listed peers of the company are: Torrent Pharmaceutical Ltd (P/E: 57.74), Mankind Pharma (P/E: 45.30), Abbott India Ltd (P/E: 47.43), J. B. Chemicals & Pharmaceutical Ltd (P/E: 50.49), Dr. Reddy's Laboratories Ltd (P/E: 17.93), Cipla Ltd (P/E: 30.10), Alkem Laboratories Ltd (P/E: 33.86).
Also Read: Emcure Pharmaceuticals IPO: Shark Tank’s Namita Thapar likely to earn ₹127 crore from OFS
Indian pharmaceutical business Emcure Pharmaceuticals Ltd was founded in 1981 and produces, distributes, and develops a broad variety of pharmaceutical products worldwide in many therapeutic areas.
For MAT September 2023, the firm was rated fourth in terms of market share in its covered markets and 13th in terms of domestic sales among pharmaceutical companies in India. It is also the top pharmaceutical firm for the MAT September 2023 in the fields of gynaecology and HIV antiviral therapy.
The global pharmaceutical market is predicted to grow at a compound annual growth rate of roughly 5.0% to 5.5% between 2023 and 2028, according to Crisil Report. This would result in a market size of between US$1,900 billion (roughly ₹157 trillion) and US$1,950 billion (roughly ₹161 trillion) in 2028. With strong demand from the rising incidence of chronic diseases, increased awareness, and access to high-quality healthcare, the Indian domestic formulations segment (consumption) is predicted to grow at a CAGR of roughly 8% to 9% between the Financial Years 2024 and 2029, reaching approximately ₹2.9 trillion to ₹3.0 trillion in the Financial Year 2029.
Uth Beverage Factory Private Ltd, Avet Lifesciences Private Ltd, Heritage Pharma Holdings Inc, AvetAPI Inc, Heritage Pharmaceuticals Inc, Brandbucket Enterprises Private Ltd, and Incredible Ventures Private Ltd are the group companies of the corporation.
The company's subsidiaries are as follows:
The company has 13 manufacturing facilities and five dedicated research and development (R&D) centers in India.
Revenue in India made up 50.84% and 53.16%, respectively, of the company's total revenue in the six months that ended on September 30, 2023, and the Financial Year 2023. Outpacing the Indian pharmaceutical industry, the company's domestic revenues expanded at a compound annual growth rate (CAGR) of 10.80% between September 2019 and September 2023.
Some of the key risks are as follows;
A 90-day lock-in term will apply to 50% of the Equity Shares with a face value of ₹10 each that were allotted to Anchor Investors under the Anchor Investor Portion, while a 30-day lock-in period would apply to the remaining 50%.
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