Emcure Pharmaceuticals IPO opens today: GMP, subscription status, review, other details. Apply or not?

Emcure Pharmaceuticals IPO subscription status: The initial public offering of Emcure Pharmaceuticals Ltd kickstarts for subscriptions today (Wednesday, July 3). At an upper price range of ₹1,008 per equity share, Emcure Pharmaceuticals Ltd picked up ₹582 crore from 48 anchor investors, on Tuesday, July 2.

Bain Capital-backed Emcure Pharmaceuticals IPO, with a price band of ₹960 to ₹1,008 per share, will close on July 5.

Emcure Pharmaceuticals, a Pune-based company, is involved in the development, production, and international marketing of a wide range of pharmaceutical products in several important therapeutic areas. Up to 108,900 equity shares of the employee portion have been earmarked for the IPO. Additionally, qualified institutional investors (QIBs) will get 50% of the issue size, retail investors would receive 35%, and non-institutional investors will receive the remaining 15%. Investors may also place bids for a minimum of 14 shares and for additional shares in multiples of 14.

Also Read: Emcure Pharmaceuticals IPO: Shark Tank’s Namita Thapar likely to earn ₹127 crore from OFS

Emcure Pharmaceuticals IPO Review

Emcure Pharmaceuticals is a well-known participant in both the domestic and global pharmaceutical industries, according to the brokerage. The firm has a robust R&D infrastructure, a big, diverse, and rapidly expanding product range, and a track record of establishing brands.

Emcure has consistently increased its top line, but recent depreciation and interest costs have caused a small drop in profitability.

But certain significant concerns need to be carefully considered. Because the pharmaceutical sector is so heavily regulated, Emcure’s raw material supply chain might be disrupted. Furthermore, the business depends on other partners to sell and distribute its products.

The brokerage thinks the 36.6x P/E value is appropriate given the company’s capabilities, growth trajectory, and potential for debt reduction after the IPO. Applying for this IPO with a long-term perspective is recommended.

Anand Rathi Research

The brokerage claims that, in terms of valuation, the firm is reasonably valued at an upper range of 36x P/E following the issuance of equity shares on an FY24 earning basis. Due to market tailwinds and business scalability, the brokerage thinks the company has room for improvement. For this reason, the brokerage suggests giving the IPO a “SUBSCRIBE – long term” rating.

Also Read: Emcure Pharma IPO: Here’s what GMP signals ahead of opening for subscription

Emcure Pharmaceuticals IPO details

The IPO comprises of a fresh offering of ₹800 crore and an offer by existing promotersand shareholders to sell ₹1,151 crore. The value of the issue size at the top of the price band is ₹1,952 crore.

The selling shareholders in the OFS include promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta.

Furthermore, shares in the OFS will be offloaded by Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, and Sonali Sanjay Mehta, in addition to BC Investments IV.

The book running lead managers for the Emcure Pharma 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.

Also Read: Emcure Pharmaceuticals IPO sets price band at ₹960-1,008 apiece; Namita Thapar to offload stake partially

Emcure Pharmaceuticals IPO GMP today

Emcure Pharma IPO GMP today is +299. This indicates Emcure Pharmaceuticals share price were trading at a premium of ₹299 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, Emcure Pharma IPO expected listing price was indicated at ₹1,307 apiece, which is 29.66% higher than the IPO price of ₹1,008.

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

Also Read: Emcure Pharmaceuticals IPO: Bain Capital backed firm raises ₹582 crore from anchor investors ahead of public issue

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.