Emcure Pharmaceuticals Ltd IPO - Allocation Quota and Company Strategies
Key Highlights:
- Emcure Pharma has plans to increase its market share in domestic markets
- It plans to continue investing in R&D and manufacturing capabilities
- Along with strategic acquisitions, it plans to deepen and expand its international presence
Emcure Pharmaceuticals Ltd is slated to launch its initial public offering (IPO) on 3rd July. The total issue size of Emcure Pharma IPO is Rs 1,952 crores at the upper price band. Like any IPO, the allocation quota has been fixed for different categories of investors. What are these and the company’s strategies going forward? Let’s find out.
Allocation quota for different investors
The table shows the allocation quota of shares for different categories of investors:
| Category | Allocation | Number of shares at the upper price band | Amount in Rs Crores at the upper price band |
|---|---|---|---|
Qualified Institutional Buyers (QIB) including Anchor | 50% | 96,33,084 | 971.01 |
Non-institutional Bidders (NIB) | 15% | 28,89,926 | 291.30 |
Bid above Rs 10 lakhs | 19,26,618 | 194.20 | |
Bid between Rs 2 lakhs to Rs 10 lakhs | 9,63,308 | 97.10 | |
Retail investors | 35% | 67,43,160 | 679.71 |
Employees | - | 1,08,900 | 10 |
Company’s future strategies
As per the RHP, the company has the following strategies as a part of its expansion plan:
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Increase market share in the domestic market
Emcure Pharma intends to consolidate its position and increase its market share in key and leading therapeutic areas, such as gynecology, cardiovascular, anti-infectives, HIV, blood-related, oncology/antineoplastic. It also intends to continue to enhance its position by leveraging its leadership position in key therapeutic areas to increase its market share in certain other therapeutic areas, such as neurology, anti-diabetics, respiratory and gastrointestinal.
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Continue investing in R&D and manufacturing capabilities to grow its differentiated product portfolio
Emcure Pharma intends to continue investing in its R&D initiatives and further strengthening its manufacturing capabilities to grow its differentiated product portfolio for both the domestic and international markets. It also expects to continue investing in formulations and APIs for high-growth therapeutic areas.
The company intends to continue developing, and increasing our manufacturing capabilities for novel drug delivery systems. It also plans to continue developing its pipeline of biotherapeutics projects, which it intends to first launch in India and, subsequently, in various international markets.
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Deepen and expand its international presence with a focused go-to-market approach
This is another future strategy of Emcure Pharma. It has filed over 1,800 dossiers globally for products offered through differentiated product platforms. It intends to continue growing its sales in all its target international markets by registering more of its products and increasing customer penetration. It also intends to continue focusing on technology-driven differentiated products, especially complex oral solids, injectables, and biotherapeutics.
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Pursue strategic acquisitions, partnerships and in-licensing arrangements
Emcure Pharma, in the past, has made strategic acquisitions of companies, such as Tillomed Laboratories in the United Kingdom in 2014 and Marcan in Canada in 2015. It has recently strengthened our presence in the Quebec region of Canada through our acquisition of Mantra in November 2023. It intends to continue to pursue strategic acquisitions of company products and facilities across key markets.
Summing it Up
It will be interesting to watch investors’ reaction to this IPO. Before investing, go through the company’s red herring prospectus for a complete overview and seek professional help if needed.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. Brokerage will not exceed SEBI prescribed limit.
FAQs
What is the bid lot of Emcure Pharma’s IPO?
The bid lot is 14 equity shares and in multiple of 14 equity shares thereafter.
Does Emcure Pharma’s IPO consist of fresh issues and an offer for sale?
Yes, the IPO has a fresh issue and an offer for sale. Fresh issue consists of equity shares worth Rs 800 crores while offer for sale is up to 1,14,28,839 equity shares.
