Emcure Pharma Receives SEBI Nod for INR 800 Cr IPO

According to Emcure Pharmaceuticals, the capital generated from the fresh issue will be allocated towards debt repayment and general corporate purposes.

Pune-based pharmaceutical company Emcure has received approval from the Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO).

The IPO is expected to launch in July this year. Emcure had initially filed preliminary IPO papers with SEBI in December 2023.

The IPO will feature a fresh issuance of equity shares worth INR 800 Cr, complemented by an Offer for Sale (OFS) comprising 1.36 Cr equity shares from promoters and existing shareholders. These specifics were detailed in the latest DRHP submitted last week.

According to Emcure Pharmaceuticals, the capital generated from the fresh issue will be allocated towards debt repayment and general corporate purposes.

Founded in 1981 by Satish Mehta, Emcure is an Indian multinational pharmaceutical company. The company’s product portfolio includes tablets, capsules (both softgel and hard-gel), and injectables. Emcure is a major producer of HIV antivirals, as well as gynecology and blood therapeutic drugs.

The pharmaceuticals specialize in developing, manufacturing, and globally marketing a diverse range of pharmaceutical products across several major therapeutic areas. The company is known for its strong R&D focus.

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

The equity shares are planned to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Emcure’s mission is to develop, manufacture, and market a broad range of pharmaceutical products globally, with a strong presence in therapeutic areas such as gynecology, cardiology, oncology, respiratory health, CNS, and HIV.

Healthcare IPOs in 2024

The IPO of Bengaluru-based healthtech firm Indegene opened for subscription in May. Indegene is a digital-first, life sciences commercialization company. It provides research and commercialization services to biopharmaceutical and healthcare enterprises.

The IPO comprises fresh equity issues worth up to INR 750 Cr and an offer for sale (OFS) of up to 23,932,732 equity shares by existing shareholders and investors. The price band of the issue was fixed at INR 430-452.

Indegene intends to use the proceeds of the fresh issue to fund the repayment of debts of one of its material subsidiaries, ILSL Holdings, Inc.

Earlier this year, Docmode Health Technologies IPO was released. The small and medium-sized enterprise (SME) Docmode Health Technologies received significant investor interest, with the public issue being subscribed 215.24 times on the final day of bidding.

Docmode Health Tech IPO received bids for 17,35,71,200 shares against 8,06,400 shares on the offer.

Additionally, the retail category of the Docmode Health Tech IPO was subscribed over 230 times and received 9,28,88,000 applications against the offered 4,03,200 shares. Meanwhile, the NII portion was subscribed 194.90 times on the last day of subscription.

2024’s maiden and first TPA in India, the Medi Assist IPO was valued at INR 1,171.58 Cr and only involved an offer-for-sale (OFS) by investors and promoters.

The stakeholders of the Bengaluru-based company offloaded INR 2.8 Cr shares from their kitty. Notable participants in the OFS included promoter Dr Vikram Jit Singh Chhatwal, Medimatter Health Management, Bessemer Health Capital LLC, and Investcorp Private Equity Fund I.

In the last fiscal year, the company posted revenue of INR 570.29 million.