Emcure Pharmaceuticals IPO Subscribed 1.32 times

4 Jul 2024 , 08:40 AM

Emcure Pharmaceuticals Ltd’s initial public offering (IPO) began on Wednesday, July 3, and has successfully completed its first bidding day, with complete subscription. According to BSE data, Emcure Pharma IPO subscriptions have increased 1.32 times.

Non-institutional investors subscribed 2.71 times the quota, while retail investors subscribed 1.39 times. The Qualified Institutional Buyers (QIBs) group had a 7% subscription rate. Employees have subscribed 2.25 times.

According to BSE data, the initial share sale attracted bids for 1,80,40,960 shares, with 1,37,03,538 shares on offer.

On Tuesday, July 2, Emcure Pharmaceuticals Ltd raised ₹582 crore from 48 anchor investors at an upper price range of ₹1,008 per equity share.

Emcure Pharmaceuticals’ IPO, funded by Bain Capital and priced between ₹960 to ₹1,008 per share, will close on July 5.

Emcure Pharmaceuticals, situated in Pune, develops, manufactures, and markets pharmaceutical products in a variety of therapeutic areas. Up to 108,900 equity shares from the employee part have been reserved for the IPO. Furthermore, qualified institutional investors (QIBs) would receive 50% of the issue size, while retail investors will receive 35% and non-institutional investors the remaining 15%. Investors may also put bids for a minimum of 14 shares and multiples of 14 thereafter.

Emcure Pharmaceuticals is a well-known player in both the domestic and worldwide pharmaceutical markets. The company has a strong R&D infrastructure, a large, diverse, and fast expanding product line, and a history of developing brands.

Emcure’s top line has steadily improved, but recent depreciation and interest charges have resulted in a slight dip in profitability.

However, certain key considerations must be properly explored. Because the pharmaceutical industry is so tightly controlled, Emcure’s raw material supply chain may be disrupted. Furthermore, the company relies on other parties to market and distribute its products.

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