Emcure Pharma IPO GMP Soars on Share Allotment Day, Predicting Strong Listing at 37% Premium
Emcure Pharmaceuticals has received a good response to its IPO, with shares trading at a premium of Rs 360 in the unlisted market. Based on the upper price band of Rs 960, the stock is expected to list at a 37% premium if current trends continue. The company finalized the share allotment today, with the listing date set for July 10.
It’s important to note that grey market premiums are only an indicator of how shares are performing in the unlisted market and can change quickly.
Subscription Details and Anchor Investors
The IPO, which included a mix of new equity sales and an offer for sale (OFS), was subscribed nearly 68 times, mainly due to strong interest from non-institutional investors.
Before the IPO opened, the company raised Rs 582 crore from anchor investors. Notable investors in this round included HDFC MF, ICICI Pru MF, SBI MF, Abu Dhabi Investment Authority, Goldman Sachs Asset Management, Nomura, and HDFC Life.
The company plans to use the net proceeds from the fresh issue to pay off debt and for general corporate purposes.
Company Overview
Pune-based Emcure Pharmaceuticals develops, manufactures, and markets a wide range of pharmaceutical products across major therapeutic areas globally. Their product portfolio includes orals, injectables, and biotherapeutics, targeting markets in over 70 countries, including India, Europe, and Canada.
The global pharmaceutical market is expected to grow at a compound annual growth rate of about 5.0% to 5.5% from 2023 to 2028, reaching approximately $1,900 billion (around Rs 157 lakh crore) to $1,950 billion (about Rs 161 trillion) by 2028.
Financial Performance
In FY24, Emcure’s revenue from operations grew 11% year-on-year to Rs 6,658 crore from Rs 5,985 crore the previous year. However, profit after tax fell 6% year-on-year to Rs 527 crore from Rs 562 crore a year earlier.
The book-running lead managers for the issue are Kotak Mahindra Capital Company, Jefferies India, Axis Capital, and JP Morgan India.
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