Emucare Pharma sets price band of Rs 960-1008 a share for upcoming IPO
Emucare Pharma sets price band of Rs 960-1008 a share for upcoming IPO
Pune-based Emucare Pharmaceuticals has set a price band of Rs 960-1008 a share for its initial public offering that will open for subscription on July 3.
The bidding for anchor investors will start on July 2 and the IPO will close on July 5. Allotment will be on July 8, refunds will be made on July 9 and the firm will list on exchanges on July 10.
The IPO consists of a fresh issue of Rs 800 crore and an offer for sale of Rs 1151 crore by existing promoters and shareholders. At the upper price band, the issue size will be worth Rs 1952 crore. The market cap of the company is expected to be around Rs 18,260 crore.
Promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta are the selling shareholders in the OFS.
In addition, Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, BC Investments IV, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, and Sonali Sanjay Mehta will also be offloading shares in the OFS.
The public issue includes a reservation of 1,08,900 equity shares for company's employees who may get those shares at a discount to the final offer price. The issue excluding the employee's portion is the net issue.
The Indian pharmaceutical company with a strong presence in India, Europe and Canada will utilise Rs 600 crore out of the net fresh issue proceeds to repay debt. The remaining funds will be used for general corporate purposes. The company has a debt of Rs 2,091.9 crore on its books at the end of March 2024.
Emcure earned 48.28 percent of its business in FY24 from India, with presence in most of the major therapeutic areas including gynaecology, cardiovascular, vitamins, minerals and nutrients, HIV antivirals, blood-related and oncology/antineoplastics.
The company recorded a 6 percent on-year decline in net profit at Rs 527.6 crore for the year ended March FY24, partly impacted by weak operating margin. Revenue from operations grew by 11.2 percent to Rs 6,658.3 crore, while EBITDA (earnings before interest, tax, depreciation and amortisation) rose by 4.1 percent to Rs 1,229.7 crore but margin dropped 120 bps to 18.5 percent for the year gone by (FY24).
Kotak Mahindra Capital Company, Axis Capital, Jefferies India, and JP Morgan India are the merchant bankers for the issue, while Link Intime India is the registrar to the offer.
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