Emcure Pharma IPO: GMP rises sharply ahead of issue opening for subscription on July 3
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Shares of Emcure Pharmaceuticals are trading at a premium of ₹270 in the unlisted market on Saturday (June 29), days ahead of the issue opening for subscription.
The grey market is an unofficial ecosystem where shares start trading before the allotment in the IPO and until the listing day. Most investors track the GMP to get an idea of the listing price.
The initial public offering (IPO) of the Pune-based company will open for subscription on July 3, and close on July 5.
Emcure Pharma will sell its shares in the range of ₹960 to ₹1,008 apiece, where investors can bid for 14 equity shares in one lot and in multiples thereafter.
At the upper end of the price band, the company is looking to raise a total of ₹1,951.04 crore through the issue.
The IPO includes a fresh share sale of ₹800 crore and an offer-for-sale (OFS) of 1.14 crore equity shares by its promoters and existing shareholders.
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 selling shares in the OFS.
Naerly 50% of the public offer has been set aside for the qualified institutional bidders (QIBs), while non-institutional investors will have 15% of the net offer. The rest 35% of the net offer shall be allocated towards retail investors.
Emcure Pharma has also reserved 1,08,900 shares for the eligible employees of the company, who will get a discount of ₹90 per share.
The proceeds from the fresh issue will be used towards repayment and/or prepayment of all or a portion of certain outstanding borrowings availed by the company; and general corporate purposes. Additionally, proceeds from the OFS shall go to the selling shareholders.
Emcure Pharmaceuticals competes with Dr Reddy's Laboratories, Cipla, Alkem Laboratories, Torrent Pharmaceuticals, Mankind Pharma, Abbott India, and JB Chemicals.
Incorporated in 1981, Emcure Pharmaceuticals develops, manufactures, and globally markets a wide range of pharmaceutical products across several major therapeutic areas.
Emcure's revenue increased by 11.33% and profit after tax (PAT) dropped by -6.1% between the financial year ending with March 31, 2024 and March 31, 2023.
The company EBITDA or earnings before interest, tax, depreciation and amortisation rose 4% to Rs 1,229.7 crore but margin dropped 120 basis points to 18.5% for the last fiscal year (FY24).
Kotak Mahindra Capital Company, Axis Capital, JP Morgan India and Jefferies India are the book running lead managers to the issue, while Link Intime India is the registrar for the issue.
The equity shares of the company will be listed on both BSE and NSE with Wednesday, July 10 as the tentative date of listing.