NE BUSINESS BUREAU
CHENNAI, JUNE 28
Emcure Pharmaceuticals Limited has set a price band of ₹960-1,008 per share for its initial public offering (IPO) that opens for subscription on Wednesday, July 3. The Pune-based company seeks to raise up to ₹ 1,952 crore through a fresh issue of 7.9 million equity shares (aggregating up to ₹ 800 crore) and an offer for sale (OFS) of 11.4 million shares (aggregating up to ₹ 1,152.03 crore).
- Price Band fixed at ₹960 per equity share of face value of ₹ 10 each to ₹1008 per equity share of the face value of ₹10 each
- Anchor Investor Bid/Offer Period – Tuesday, July 02, 2024
- Bid/ Offer Closing Date – Friday, July 05, 2024
- Bids can be made for a minimum of 14 Equity Shares and in multiples of 14 Equity Shares thereafter
- Emcure has 13 manufacturing facilities in Maharashtra, Gujarat, Sikkim, Karnataka, and Jammu and Kashmir, in India
The anchor investor bid/offer period is one Working Day prior to Bid/Offer Opening Date, that is, Tuesday, July 02, 2024
The IPO will be open for subscription till July 5. Incidentally, this will be the fourth biggest of 2024 after Bharti Hexacom (₹ 4,275 crore) Aadhar Housing (₹ 3,000 crore) and Go Digit (₹ 2,614 crore).
The Price Band of the Offer has been fixed from ₹ 960 per Equity Share to ₹ 1008 per Equity Share. Bids can be made for a minimum of 14 Equity Shares and multiples of 14 Equity Shares thereafter.
A discount of ₹90 per equity share is being offered to eligible employees bidding in the employee reservation portion. Emcure Pharma IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors. Employee portion has been reserved up to 108,900 equity shares.
The Company proposes to utilize the net proceeds towards repayment and/ or prepayment of all or a portion of certain outstanding borrowings availed by the Company and general corporate purposes.
The selling shareholders in the OFS include promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta.
Furthermore, shares in the OFS will be offloaded by Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, and Sonali Sanjay Mehta, in addition to BC Investments IV.
As on September 30, 2023, Emcure had total outstanding borrowings of ₹2,012.8 crore on a consolidated basis. The net proceeds will be used to pay all or a portion of the principal amount on certain borrowings and the accrued interest.
In the virtual press conference, Satish Mehta, Chief Executive Officer and Managing Director of Emcure Pharmaceuticals, said, “We were planning to come up with the IPO in 2021, the Ukraine-Russia escalation happened, and we felt that we will wait for an opportune time, Emcure would be open to inorganic opportunities after the listing.”
Emcure has 13 manufacturing facilities in Maharashtra, Gujarat, Sikkim, Karnataka, and Jammu and Kashmir, in India. “We have sufficient capacity at our disposal at the moment, there are a few factories that we have commissioned very recently,” said Mehta.
Emcure filed a draft red herring prospectus in December and got market regulator Sebi’s approval earlier this month.
The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on both BSE Limited and the National Stock Exchange of India Limited.
The book running lead managers for the Emcure Pharma IPO are Axis Capital Limited, J.P. Morgan India Private Limited, Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited. The registrar for the offering is Link Intime India Private Ltd.
