The Emcure Pharmaceuticals IPO has witnessed an overwhelming response from investors. On the third day of bidding, the IPO was oversubscribed with non-institutional investors leading the charge. As per the BSE data at 13:00 IST, the subscription status stood at an impressive 11.63 times. Non-institutional investors subscribed 31.67 times, retail investors booked their portion 5.36 times, Qualified Institutional Buyers (QIBs) were subscribed 7.54 times, and the employee component saw a subscription of 7.11 times.
The initial share-sale garnered bids for a staggering 15,94,39,266 shares against the 1,37,03,538 shares on offer, underscoring the robust demand for Emcure’s stock. On the second day of bidding, the IPO had already seen a subscription status of 4.98 times, and it was 1.32 times subscribed on the first day. The positive response from individual investors, non-institutional investors, and institutional purchasers contributed significantly to the smooth sailing of the offering.
Emcure Pharmaceuticals, headquartered in Pune, is a global pharmaceutical company engaged in research, development, manufacturing, and sales across a wide range of therapeutic areas. The IPO, with shares priced between ₹960 and ₹1,008, is set to close on July 5.
Emcure Pharmaceuticals IPO Review
Canara Bank Securities: According to Canara Bank Securities, Emcure Pharmaceuticals is a formidable player in the pharmaceutical industry. The brokerage highlights the company’s strong R&D focus, global reach, leadership in the Indian market, and sound financial management as key factors that will ensure its continued growth and profitability. Emcure’s issue is competitively valued compared to its peers, with a P/E ratio of 36.6x. For long-term benefits, Canara Bank Securities recommends subscribing to this IPO.
Master Capital Services: Master Capital Services emphasizes that Emcure Pharmaceuticals aims to utilize the additional funds from the IPO to reduce and eventually eliminate its long-term debt. The brokerage notes that Emcure has consistently strengthened its position in key therapeutic areas such as gynecology. By building on these strengths, the company is well-positioned to support its future development and increase margins. Given its fair valuation in comparison to listed competitors, Master Capital Services advises subscribing to the IPO with a long-term perspective.
Emcure Pharmaceuticals IPO Details
The Emcure Pharmaceuticals IPO includes a fresh issue of ₹800 crore and an offer for sale (OFS) by existing promoters and shareholders worth ₹1,151 crore. At the upper end of the price band, the total issue size is valued at ₹1,952 crore.
The selling shareholders in the OFS include promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta. Additionally, shares will be offloaded by Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, and Sonali Sanjay Mehta, along with BC Investments IV.
The book-running lead managers for the 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.
Emcure Pharmaceuticals IPO GMP Today
The Grey Market Premium (GMP) for Emcure Pharmaceuticals’ IPO today is +₹335, as per investorgain.com. This indicates that Emcure Pharmaceuticals’ shares were trading at a premium of ₹335 in the grey market. Considering the upper end of the IPO price band and the current premium in the grey market, Emcure Pharmaceuticals’ IPO expected listing price is estimated to be ₹1,343 per share. This represents a 33.23% increase over the IPO price of ₹1,008.
Conclusion
The enthusiastic response to Emcure Pharmaceuticals’ IPO reflects strong investor confidence in the company’s growth prospects. The substantial oversubscription by non-institutional investors and significant interest from retail and institutional investors indicate a broad-based appeal. Emcure’s strategic focus on reducing debt, coupled with its robust R&D capabilities and leadership in key therapeutic areas, positions it well for future growth. The competitive pricing of the IPO, as highlighted by brokerage firms, further adds to its attractiveness as a long-term investment. As the IPO progresses, all eyes will be on Emcure Pharmaceuticals as it continues to make strides in the global pharmaceutical industry.
