Emcure Pharma IPO: Issue fully subscribed on day 1; check subscription status, GMP and other details

Emcure Pharmaceuticals initial public offerings (IPO), which opened for subscription on Wednesday, was fully subscribed by the later half of the first day of bidding, driven by strong demand from non-institutional investors.

The issue has been subscribed 1.22 times in the retail category and 1.92 times in the NII portion, on June 3. However, there have been no bids yet in the QIB category.

Before the issue opened, the company secured ₹582 crore from anchor investors. Notable participants in the anchor round include HDFC MF, ICICI Pru MF, SBI MF, Abu Dhabi Investment Authority, Goldman Sachs Asset Management, Nomura, HDFC Life, among others.

Emcure Pharma IPO details

The IPO consists of a fresh issuance of equity shares amounting to ₹800 crore and an Offer For Sale (OFS) of 1.14 crore equity shares by promoters and existing shareholders. Namita Thapar, known from Shark Tank fame, stands to earn approximately ₹127 crore through the stake sale in the OFS.

The IPO opened for subscription on Wednesday, July 3 and will close on Friday, July 5.

Investors can apply for a minimum lot size of 14 shares, with bids allowed in multiples of 14 thereafter. The floor price is set at 96 times the face value of the equity shares, and the cap price at 100.80 times the face value.

The pharmaceutical company intends to utilize the net proceeds to repay and/or prepay certain outstanding borrowings, as well as for general corporate purposes.

In FY24, the company’s revenue from operations increased by 11% year-on-year to ₹6,658 crore from ₹5,985 crore in the previous financial year. However, profit after tax decreased by 6% year-on-year to ₹527 crore from ₹562 crore in the corresponding period.

Kotak Mahindra Capital Company, Jefferies India, Axis Capital, and JP Morgan India are serving as the book-running lead managers for the issue.

Emcure Pharma IPO GMP today

The shares of Emcure Pharma were trading at a premium of ₹310 in the grey market premium (GMP) which is higher than yesterday, according to investorgain.

This indicates that the estimated listing price of Emcure Pharma is likely to be at ₹1318, which is 30.75% higher than the IPO price band of ₹1008. The highest GMP of Emcure Pharma IPO is ₹310 and lowest is ₹0.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.