Introduction

Emcure Pharmaceuticals Limited, an established name in the pharmaceutical industry, is set to launch its Initial Public Offering (IPO) to raise Rs 1,952.03 crores. This IPO includes a fresh issue of shares worth Rs 800.00 crores and an offer for sale amounting to Rs 1,152.03 crores.

IPO Schedule

• Opens: July 3, 2024

• Closes: July 5, 2024
• Basis of Allotment: July 8, 2024
• Initiation of Refunds: July 9, 2024
• Credit of Shares to Demat: July 9, 2024
• Listing Date: July 10, 2024
• Price Band: ₹960 to ₹1008 per share
• Lot Size: 14 shares

Issue Breakdown

• Total Issue Size: 19,365,346 shares (aggregating up to Rs 1,952.03 Cr)
• Fresh Issue: 7,936,507 shares (aggregating up to Rs 800.00 Cr)
• Offer for Sale: 11,428,839 shares (aggregating up to Rs 1,152.03 Cr)
• Employee Discount: Rs 90 per share

Promoter Holding

• Pre Issue: 98.90%
• Post Issue: [Data Not Available]

Company Overview

Incorporated in 1981, Emcure Pharmaceuticals Limited is an Indian pharmaceutical company that develops, manufactures, and markets a diverse range of pharmaceutical products globally. The company holds a strong position in the domestic market, being ranked 13th in sales among Indian pharmaceutical companies and leading in gynaecology and HIV antiviral therapeutic areas as of September 2023.

Emcure's extensive portfolio includes innovative products across various therapeutic areas, supported by a robust R&D infrastructure with over 552 scientists and five research facilities in India. The company has filed more than 1,800 documents globally, with a significant number of patents granted and pending.

Key Features

• Manufacturing Facilities: 13 facilities across India capable of producing various pharmaceutical and biopharmaceutical products.
• Market Presence: A well-established marketing and distribution network supported by over 5,000 field personnel and 5,000 stockists.
• Research and Development: Strong R&D capabilities with over 552 scientists and significant patent filings.

Financial Performance

Restated Consolidated Financial Information

Key Performance Indicators (KPI)

• Market Capitalization: Rs 19,029.89 Cr
• ROE: 16.90%
• ROCE: 19.37%
• Debt/Equity: 0.67
• RoNW: 16.87%
• P/BV: 6.18

EPS (Earnings Per Share)

• Pre IPO: 29.17
• Post IPO: 27.95
• P/E Ratio:
  • Pre IPO: 34.55
  • Post IPO: 36.07

Objects of the Issue

The net proceeds from the IPO will be utilized for:

1. Repayment and/or prepayment of certain outstanding borrowings.
2. General corporate purposes.

Conclusion

Emcure Pharmaceuticals Limited's IPO presents a significant opportunity for investors, supported by the company's strong market presence, extensive manufacturing capabilities, and robust financial performance. With a strategic focus on R&D and a comprehensive product portfolio, Emcure is well-positioned for future growth and expansion.