Emcure Pharmaceuticals, backed by Bain Capital, will launch its Initial Public Offering (IPO) on July 3. The IPO will end on July 5, with anchor investor bidding open for one day on July 2, according to the Red Herring Prospectus (RHP). The IPO includes new equity shares worth ₹800 crore and an Offer for Sale (OFS) of 1.14 crore shares by promoters and existing shareholders.
Promoter Satish Mehta, who currently holds a 41.85% stake, and BC Investments IV Ltd, which holds 13.07%, are among those selling shares. The funds from the fresh issue will be used to pay off debt and for general corporate purposes.
Emcure Pharma to Use IPO Funds for Debt Payment
Emcure will allocate the IPO’s funds to settle debts and for general corporate purposes. As of September 30, 2023, Emcure had total outstanding borrowings of Rs 2,012.8 crore on a consolidated basis. The net proceeds will be used to pay all or part of the principal amount on certain borrowings and the accrued interest.
Emcure filed a draft red herring prospectus in December and received market regulator Sebi’s approval earlier this month. Initially, Emcure submitted draft papers for its IPO in August 2021, detailing a fresh issue of Rs 1100 crore and an OFS of 18 million equity shares. At that time, the fundraising target was estimated to be around Rs 4500-5000 crore, according to market sources. The company got Sebi’s approval in December 2021 but did not proceed with the IPO then.
Emcure, along with its arm Zuventus, ranked twelfth in the domestic pharmaceutical market as of May 2024, according to Pharmarack. The company’s product portfolio includes orals, injectables, biotherapeutics, and it has a presence in 70 countries, including parts of Europe and Canada.
Emcure Pharmaceuticals, based in Pune, develops, manufactures, and markets a wide range of pharmaceutical products globally. The company recently received approval from Sebi for the IPO. Kotak Mahindra Capital Company, Jefferies India, Axis Capital, and JP Morgan India are managing the issue. Emcure’s shares are expected to list on the BSE and NSE on July 10.
