Emcure Pharmaceuticals IPO, which is set to start with a share sale tomorrow, Wednesday, July 3, is estimated to bring in about ₹127.87 crore for Namita Thapar, a well-known Shark Tank India investor and member of the Emcure Pharmaceuticals promoter group.
Through the IPO, Thapar, who picked up shares of Emcure Pharmaceuticals at a weighted average price of ₹3.44 per share, would sell off a portion of his holdings, or around 12.68 lakh shares, through the offer for sale (OFS) component. The stake sale will bring in almost ₹127 crore when the top price band of ₹1,008 is taken into account. Thapar owned around 63 lakh shares, or 3.5%, of the Pune-based company as of March 2024.
The issue, which will end on Friday, July 5, set its price band in the range of ₹960 to ₹1,008 per equity share of the face value of ₹10.
As a Whole-Time Director of the firm, Namita Thapar has been reappointed to the board for a further five years, effective July 28, 2024, by resolutions voted by the board and shareholders on May 27, 2024, and June 5, 2024, respectively.
In addition to Thapar, the promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, and Samit Satish Mehta are among the other 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.
A fresh ₹800 crore offering and a ₹1,151 crore offer to sell made by current promoters and shareholders make up Emcure Pharmaceuticals IPO. The issue size, valued at ₹1,952 crore at the upper end of the price band.
In order to pay back and/or prepay all or part of the existing loans that the firm has obtained, the company plans to use the net profits for the following goals in addition to general corporate purposes.
For the Emcure Pharma IPO, Axis Capital Limited, J.P. Morgan India Private Limited, Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited are the book running lead managers. Link Intime India Private Ltd. is the offering's registrar.
The company is an Indian pharmaceutical producer that develops, manufactures, and sells a broad variety of pharmaceutical products in several therapeutic areas on a worldwide scale. This research and development (R&D) driven company offers a distinctive product portfolio that includes injectables, biotherapeutics, and orals. It has reached a wide range of target markets in over 70 countries, with a notable presence in Europe, Canada, and India.
The company's listed peers, according to the Red Herring Prospectus (RHP), are Torrent Pharmaceutical Ltd (P/E of 57.74), Mankind Pharma (P/E of 45.30), Abbott India Ltd (P/E of 47.43), J. B. Chemicals & Pharmaceutical Ltd (P/E of 50.49), Dr. Reddy's Laboratories Ltd (P/E of 17.93), Cipla Ltd (P/E of 30.10), Alkem Laboratories Ltd (P/E of 33.86), and Torrent Pharmaceutical Ltd (P/E of 56.74).
Emcure Pharma IPO GMP today is +290. This indicates Emcure Pharmaceuticals share price were trading at a premium of ₹290 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, Emcure Pharma IPO expected listing price was indicated at ₹1,298 apiece, which is 28.77% higher than the IPO price of ₹1,008.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
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