Analysing Emcure Pharma IPO - Check Issue Price and Offer Details
Key Highlights:
- The total size of Emcure Pharma’s IPO is Rs 1,952 crores at the upper price band
- The IPO’s price band is Rs 960 to Rs 1,008 per equity share
- The bid lot for Emcure Pharma’s IPO is 14 equity shares and in multiples of 14 thereafter
With the dust settling after the Lok Sabha Elections, the Indian primary market is abuzz with activities, with several companies across industry verticals set to launch initial public offerings (IPOs). Emcure Pharmaceuticals Ltd is the latest to join the Indian IPO bandwagon. The pharma giant is all set to come up with its IPO on 3rd July.
About Emcure Pharmaceuticals Ltd
Emcure Pharma is an Indian pharmaceutical company engaged in developing, manufacturing, and globally marketing a broad range of pharmaceutical products across several major therapeutic areas. An R&D-driven company with a differentiated product portfolio comprising orals, injectables and biotherapeutics, the company is ranked as the 13th largest pharmaceutical company in India in terms of domestic sales for the MAT financial year 2024.
IPO details and objectives
The IPO comprises a fresh issue of equity shares up to Rs 800 crores and an offer for sale of up to 1,14,28,839 equity shares. The total issue size of the offer is Rs 1952 crores at the upper price band. Here are the other IPO details:
| IPO opens on | July 3 |
|---|---|
IPO closes on | July 5 |
Price band | Rs 960 to Rs. 1,008 per equity share |
Bid lot | 14 equity shares and in multiples of 14 equity shares thereafter |
Face value | Rs 10 per share |
The company plans to utilise the proceeds for:
- Repayment and prepayment of certain outstanding borrowings
- General corporate purposes
Financial snapshot of Emcure Pharma
Here are some key financials of the company:
| Particulars | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total assets (in Rs crores) | 7806.163 | 6672.531 | 6063.469 |
Total income (in Rs crores) | 6715.241 | 6031.716 | 5918.860 |
Total expenses (in Rs crores) | 5978.082 | 5278.355 | 4946.312 |
Diluted earnings per share | 27.54 | 29.42 | 36.62 |
Return on net worth | 16.87% | 21.27% | 33.32% |
Key strengths
The company boasts of the following strengths
- Well-placed to leverage its position in the domestic market
- Demonstrated capabilities of building brands
- Large, diversified and fast-growing product portfolio in international markets
- Strong R&D capabilities driving a differentiated portfolio of products
- Extensive and diversified manufacturing capacity
- Highly qualified, experienced and entrepreneurial management team and Board
Strategies planned
The company's Board, in a resolution dated 18th June 2024, has approved these strategies for the firm as a part of its expansion plans:
- Increase market share in the domestic market
- Continuing investing in R&D and manufacturing capabilities to enhance and grow its differentiated product portfolio
- Deepening and expanding its international presence with a focused go-to-market approach
- Pursuing strategic acquisitions, partnerships and in-licensing arrangements
Industry overview
The Indian pharmaceutical industry is the world’s third-largest by volume and was valued at Rs 3.6-3.8 trillion as of FY 24. Currently, the low-value generic drugs constitute a large part of Indian exports. India accounts for approximately 3.5% of total drugs and medicines exported globally.
The country has a complete ecosystem for developing and manufacturing pharmaceuticals, with companies with state-of-the-art facilities and skilled/ technical manpower. Moreover, India has several renowned pharmaceutical educational and research institutes and a robust ecosystem of allied industries.
Wrapping it Up
For further details, go through the company's red herring prospectus. Before investing, make sure to factor in your financial goals and risk tolerance.
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
Who is the registrar for Emcure Pharma's IPO?
Link Intime India Private Limited is the registrar for Emcure Pharma's IPO.
Who are the book running lead managers of Emcure Pharma's IPO?
Kotak Mahindra Capital Ltd, Axis Capital Ltd, Jefferies India Pvt Ltd and J P Morgan India Pvt Ltd are the book running lead managers of Emcure Pharma's IPO.
