Emcure Pharmaceuticals gets SEBI approval for IPO

21 Jun 2024 , 09:22 AM

Maharashtra-based Emcure Pharmaceuticals has secured approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO). According to sources, the IPO is expected to launch in July.

Details of the IPO

• Fresh Issue: Emcure Pharmaceuticals plans to raise ₹800 Crore through a fresh issuance of equity shares.
• Offer-for-Sale (OFS): The IPO will also include an OFS of 1,36,78,839 equity shares by existing shareholders, including the company’s promoters.

Prominent Selling Shareholders

Satish Ramanlal Mehta and Sunil Rajanikant Mehta, the company’s promoters, will be selling a portion of their shares in the upcoming initial public offering (IPO) of Dee Development Engineers Ltd. They will be joined by other early investors, including Namita Vikas Thapar, Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, BC Investments IV, Arunkumar Purshotamlal KhannaI, Berjis Minoo Desai, and Sonali Sanjay Mehta, who will also be offering their shares for sale.

SEBI Approval and Filing Status

SEBI issued an observation letter on June 10, 2024, indicating that Emcure Pharmaceuticals can proceed with its IPO. The company initially filed its preliminary papers with SEBI in December 2023.

Use of IPO Proceeds

Emcure Pharmaceuticals plans to use ₹640 Crore from the fresh issue proceeds to repay its debt. The remaining funds will be allocated for general corporate purposes. As of September 2023, the company had an outstanding borrowing of ₹2,012.9 Crore.

Competitors and Market Position

Emcure Pharmaceuticals operates in a competitive market alongside industry giants such as Dr. Reddy’s Labs, Cipla, Alkem Labs, Torrent Pharma, Mankind Pharma, and Abbott India.

Lead Managers for the IPO

The book running lead managers for Emcure Pharmaceuticals’ IPO are:

• Kotak Mahindra Capital Company
• Axis Capital
• Jefferies India
• JP Morgan India