Emcure Pharma IPO Listing Today: What to Expect and Potential Gains!

Emcure Pharmaceuticals is set to debut on the stock market today, July 10, at 10:00 AM IST. According to the BSE website, Emcure’s shares will be listed and traded on both the BSE and NSE during a special pre-open session.

Listing Details

The equity shares of Emcure Pharmaceuticals Ltd will be listed and traded in the ‘B’ Group of Securities on the Exchange starting today.

Analyst Predictions

Prashanth Tapse, Mehta Equities Prashanth Tapse, Research Analyst and Senior Vice President of Research at Mehta Equities, noted that Emcure Pharmaceuticals’ IPO received strong interest from all types of investors. He believes the attractive pricing and opportunity to invest in a leading Indian pharmaceutical company specializing in HIV antiviral therapy and gynecology increased investor interest. Tapse suggests that investors who received allocations should consider booking profits on the listing day, expecting a listing gain of 25-30% over the issue price of ₹1,008 per share.

Amit Goel, Pace 360 Amit Goel, Co-Founder & Chief Global Strategist at Pace 360, mentioned that Emcure Pharmaceuticals, founded in 1981, is involved in the research, development, production, and international marketing of a wide range of pharmaceutical products. While the company showed steady revenue growth, its profit margins were affected by interest and depreciation expenses. Post-IPO debt reduction should improve profits. Goel predicts a listing price of ₹1,370 to ₹1,390 per share, indicating a listing premium of about 37%.

VLA Ambala, SMT VLA Ambala, SEBI Registered RA and Co-Founder of SMT, highlighted that Emcure Pharmaceuticals’ IPO, which raised ₹1,952.03 crores, was subscribed 67.87 times. While the IPO received an impressive response across all investor categories, it didn’t attract much interest from retail investors due to its high price band of ₹960-1,008. Ambala noted that the pre-IPO price-to-earnings (PE) ratio of 34.55 is expected to increase to 36.07, aligning with the average pharma sector PE of 36.80. She anticipates a 20-28% listing gain and suggests that retail investors hold their shares, as the stock could potentially double in value within 3-9 months while maintaining a stop-loss of 10-12% of the lower price band.

Grey Market Premium (GMP)

Today, Emcure Pharmaceuticals’ IPO GMP is +300, indicating that the shares are trading at a ₹300 premium in the grey market. Based on the upper IPO price band and current GMP, the expected listing price is around ₹1,308 per share, which is 29.76% higher than the IPO price of ₹1,008. Over the past 14 sessions, grey market activity suggests a strong listing, with the GMP ranging from ₹0 to ₹390.

The grey market premium indicates that investors are willing to pay more than the issue price, suggesting strong interest and a potentially robust listing for Emcure Pharmaceuticals.