Status of Emcure Pharmaceuticals’ IPO subscription: Today, Wednesday, July 3, is the launch of Emcure Pharmaceuticals Ltd.’s first public offering, which is open for subscriptions. On Tuesday, July 2, 48 anchor investors contributed ₹582 crore to Emcure Pharmaceuticals Ltd., at a maximum price range of ₹1,008 per equity share.
The IPO for Emcure Pharmaceuticals, supported by Bain Capital, is scheduled to close on July 5th, with a price range of ₹960 to ₹1,008 per share.
Emcure Pharmaceuticals is a Pune-based business that develops, produces, and markets pharmaceutical products globally in a number of significant therapeutic areas. The employee portion’s 108,900 equity shares are reserved for the first public offering (IPO). Furthermore, ordinary investors would receive 35% of the issue size, non-institutional investors would receive 15%, and qualified institutional investors (QIBs) would receive 50% of the issue size. Additionally, bids for a minimum of 14 shares and additional shares in multiples of 14 may be made by investors.
Review of Emcure Pharmaceuticals’ IPO
Swastika Investmart Ltd
The brokerage claims that Emcure Pharmaceuticals is a well-known player in both the domestic and international pharmaceutical markets. The company has experience building brands, a large, broad, and quickly growing product range, and a strong R&D infrastructure.
Though recent depreciation and interest expenses have resulted in a little decline in profitability, Emcure has continuously grown its top line.
Also Read | Emcure Pharma IPO subscription on July 3: Verify the promoters’ details before placing a bid
However, there are a few important issues that should be properly thought out. Emcure’s raw material supply chain could be affected by the extensive regulations that surround the pharmaceutical industry. In addition, the company’s ability to market and deliver its goods depends on other partners.
Given the company’s strengths, development trajectory, and possibility for debt reduction following the IPO, the brokerage believes the 36.6x P/E value is reasonable. It is advised to apply for this IPO with an eye on the long term.
Research by Anand Rathi
According to the brokerage, the company is fairly valued at an upper range of 36x P/E when equity shares are issued on an FY24 earning basis. The brokerage believes there is potential for improvement because of the company’s scalability and the tailwinds in the market. The brokerage advises ranking the IPO as “SUBSCRIBE – long term” because of this.
The IPO facts for Emcure Pharmaceuticals
The IPO consists of an 800 crore new offering and a 1,151 crore sale by current promoters and shareholders. The issue size at the upper end of the pricing range is valued at ₹1,952 crore.
The OFS’s selling stockholders comprise of promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Samit Satish Mehta, and Namita Vikas Thapar.
In addition, BC Investments IV together with Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Arunkumar Purshotamlal Khanna, Kamini Sunil Mehta, Berjis Minoo Desai, and Sonali Sanjay Mehta would be offloading shares in the OFS.
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 for the Emcure Pharma IPO. The offering’s registrar is called Link Intime India Private Ltd.
IPO GMP for Emcure Pharmaceuticals today
Today’s GMP for Emcure Pharma’s IPO is +299. According to investorgain.com, this shows that the price of Emcure Pharmaceuticals shares were selling at a premium of ₹299 on the black market.
The estimated listing price of ₹1,307 per share for Emcure Pharma was determined by taking into account the top limit of the IPO price band and the current premium in the grey market. This represents a 29.66% increase over the IPO price of ₹1,008.
Investors’ willingness to pay over the issue price is shown by the “grey market premium.”
(Disclaimer: The opinions and suggestions mentioned are from individual analysts, experts, and broking firms, not endorsed by Businessuncover. Investors should consult certified experts before deciding on investments.)
