The Emcure Pharmaceuticals IPO, starting tomorrow, July 3, is projected to generate approximately ₹127.87 crore for Namita Thapar, a well-known Shark Tank India investor and part of the Emcure Pharmaceuticals promoter group.
Key Details of the IPO
Offer for Sale (OFS):
- Thapar, who acquired shares at an average price of ₹3.44 each, will sell around 12.68 lakh shares through the OFS.
- This stake sale is expected to raise about ₹127 crore at the top price band of ₹1,008.
- As of March 2024, Thapar owned approximately 63 lakh shares, or 3.5%, of the company.
IPO Timeline:
- Start Date: Wednesday, July 3
- End Date: Friday, July 5
- Price Band: ₹960 to ₹1,008 per equity share of ₹10 face value
Reappointment:
- Thapar has been reappointed as a Whole-Time Director for another five years, effective July 28, 2024.
Other Selling Shareholders
Promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, and Samit Satish Mehta, along with BC Investments IV, Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, and Sonali Sanjay Mehta, are also selling shares in the OFS.
IPO Composition and Use of Funds
The IPO consists of:
- A fresh offering worth ₹800 crore
- A ₹1,151 crore offer for sale by current promoters and shareholders
- Total issue size: ₹1,952 crore at the upper end of the price band
The company plans to use the proceeds to repay or prepay existing loans and for general corporate purposes.
IPO Management
- Book Running Lead Managers: Axis Capital Limited, J.P. Morgan India Private Limited, Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited.
- Registrar: Link Intime India Private Ltd.
Company Overview
Emcure Pharmaceuticals is an Indian pharmaceutical producer that develops, manufactures, and sells a variety of pharmaceutical products globally. The company focuses on research and development, offering a unique product portfolio that includes injectables, biotherapeutics, and orals. Emcure has a significant presence in over 70 countries, notably in Europe, Canada, and India.
Market Comparisons and Grey Market Premium
According to the Red Herring Prospectus (RHP), Emcure’s listed peers include:
- 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)
Grey Market Premium (GMP):
- The Emcure Pharma IPO GMP is +₹290 today, indicating a potential listing price of ₹1,298, which is 28.77% higher than the IPO price of ₹1,008.
The grey market premium reflects investor enthusiasm and their willingness to pay more than the issue price.
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