Emcure Pharmaceuticals is set to list its IPO shares tomorrow, Wednesday, July 10. The allotment of shares has been finalized, with the shares credited to demat accounts today, Tuesday, July 9. Refunds for those who did not receive shares will also be processed today.
Strong Subscription Numbers
The Emcure Pharmaceuticals IPO saw strong interest, especially from non-institutional investors. On the third day of bidding, the IPO was oversubscribed by 67.87 times. Non-institutional investors subscribed 48.32 times, retail investors 7.21 times, Qualified Institutional Buyers (QIBs) 195.83 times, and employees 8.81 times.
On the first day, the IPO was subscribed 1.32 times, and on the second day, it was 4.98 times.
Company Background and IPO Details
Emcure Pharmaceuticals, based in Pune, is involved in research, development, production, and marketing of pharmaceutical products worldwide. The IPO, with a price range of ₹960 to ₹1,008 per share, opened for subscription on July 3 and closed on July 5.
Prashanth Tapse, a Research Analyst and Senior Vice President of Research at Mehta Equities, noted that Emcure Pharma received strong interest from all types of investors throughout the subscription period. He attributed this to the company’s reasonable valuations and its leading position in the gynecology and HIV antivirals therapeutic areas. He expects a listing gain of around 25-30%.
GMP and Expected Listing Price
Today, the grey market premium (GMP) for Emcure Pharmaceuticals IPO is +352. This suggests that the shares are trading at a premium of ₹352 in the grey market, indicating an expected listing price of ₹1,360 per share. This is 34.92% higher than the IPO price of ₹1,008.
The GMP has been rising, signaling a potentially strong listing. Over the past 13 grey market sessions, the GMP has ranged from ₹0 to ₹390.
IPO Details
The IPO consists of a fresh issue worth ₹800 crore and an offer for sale (OFS) by existing promoters and shareholders worth ₹1,151 crore, totaling ₹1,952 crore at the top price band.
The selling shareholders in the OFS include promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta, as well as other stakeholders.
The book running lead managers for the IPO are Axis Capital Limited, J.P. Morgan India Private Limited, Jefferies India Private Limited, and Kotak Mahindra Capital Company Limited. The registrar for the offering is Link Intime India Private Ltd.
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