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Emcure Pharmaceuticals IPO Details: Date, Share Price, Size, GMP & Review

Emcure-Pharmaceuticals-IPO-Details-Date,-Share-Price,-Size,-GMP-&-Review

Emcure Pharmaceuticals – About the Company

Emcure Pharmaceuticals is one of the 13th largest pharmaceutical companies in India based on sales in gynaecology, blood related and HIV antivirals therapeutic areas. The company is selling drugs and medicines in areas such as cardiology, gynaecology, anti-infectives (medicines are developed to kill foreign organisms causing the infections) and vitamins.

Emcure Pharmaceuticals is developing and marketing a wide range of pharmaceutical products across several major therapeutic areas across the globe with a presence in more than 70 countries, including the United Kingdom, Canada and Thailand.

Emcure is the fourth largest pharmaceutical company by market share in the covered markets. And largest pharma company in the gynecology and human immunodeficiency virus (HIV) antivirals therapeutic areas in India, holding around 51% market share in HIV antivirals and also involved in developing the orals, injectables and biotherapeutics.

While in gynaecology and blood-related therapeutic areas company holds a domestic market share of 11.85% and 10.26%, respectively in 2021. The company is also developing an RNA vaccine for COVID-19 through its subsidiary Genova Biopharmaceuticals.

Emcure Pharmaceutical operates with 14 manufacturing facilities across India and has approvals from various regulatory bodies includingthe USFDA, Health Canada, EDQM (Europe) and MHRA (United Kingdom). All these manufacturing units are capable of producing a wide range of pharma and biopharmaceutical products in diverse dosage forms.

Emcure Pharmaceuticals IPO Objectives

As per the DRHP prospectus document as of September 2023, the company has a debt amounting to Rs 2,012.9 crore. Hence, one of the main objectives of raising funds through, Emcure Pharmaceuticals IPO is repaying debts amounting to Rs 640 crore.

Also Read: What is IPO: How it Works & Everything Else You Need To know

The IPO is a mix of fresh issuance of shares worth Rs 800, and offer-for-sale. Hence, part of the fund will be also utilized for general corporate purposes.

Emcure Pharmaceuticals IPO Details:

IPO Open Date To be Announced
IPO Close Date To be Announced
Basis of Allotment To be Announced
Listing Date To be Announced
Face Value Rs 10 per share
Price To be Announced
Lot Size To be Announced
Issue Size [.] shares
(aggregating up to Rs 800.00 crore)
Fresh Issue [.] Shares, aggregating up to Rs 800.00 crore
Offer For Sale To be Announced
Issue Type Book Built Issue IPO
Listing At BSE & NSE
QIB Shares Offered Not more than 50% of the Net Issue
Retail Shares Offered Not less than 35% of the Net Issue
NII (HNI) Shares Offered Not less than 15% of the Net Issue

 

Emcure Pharmaceuticals IPO Issue Price & Size

The issue price of Emcure Pharmaceuticals IPO is between the ranges of Rs XXX to Rs XXX. The total issue size of Emcure Pharmaceuticals IPO is Rs 800 crore. Though, earlier in Aug 2021, the company filed the draft papers for its IPO with an issue size of Rs 1,100 crore. But not company has reduced the size of both the fresh issuance and OFS and plans to raise up to Rs 800 crore through fresh issuance, and an OFS by offloading equity shares of 1.37 crore by existing shareholders.

Emcure Pharmaceuticals IPO Launch Date

Emcure Pharmaceuticals IPO will be open on the date of XXXXX and will end on XXXXX. All categories of investors can bid between these dates. Though, the exact launch date of Emcure Pharmaceuticals IPO has been not announced yet but will be declared soon.

Emcure Pharmaceuticals Financial Statements:

Particulars (Rs in Million) FY24 (6M) FY23 FY22 FY21 CAGR
Revenue from Operations 32,192.51 59,858.11 58,553.87 50,334.74 9.05%
Other Income 163.12 459.05 634.73 338.76
Total Income 32,355.63 60,317.16 59,188.60 50,673.50 9.10%
Operational Expenses 18042.04 33778.59 32449.76 27879.62
Other expenses 7904.15 14267.70 12805.03 10292.31
EBITDA 6409.4 12270.9 13933.8 12501.6 -0.93%
EBITDA Margin% 19.91% 20.50% 23.80% 24.84%
Depreciation 1374.51 2601.18 2448.55 2499.94
Interest 1110.14 2136.08 1759.78 1549.41
Profit Before Tax 3924.79 7533.61 9725.48 8452.22  
Total tax 1025.65 1853.70 2699.92 2334.45
PAT 2899.14 5679.91 7025.56 6117.77 -3.65%
PAT Margin% 9.01% 9.49% 12.00% 12.15%  
EPS Basic (Rs) 14.91 29.42 36.62 32.11  

Source: DRHP

Emcure Pharmaceuticals Financial Performance

The revenue of Emcure Pharmaceuticals for the financial year 2023 was Rs 5985.81 crore which has marginally grown at a CAGR of 9% from FY21 of Rs 5033.47 crore. However, for the first six months of FY24, the revenue of the company stood at Rs 3219.25 crore which rose by 15.3% compared to the same period in the previous financial year.

The EBITDA of the company stood at Rs 640.94 crore in the first six months of FY24, and in the full year FY23, the same was at Rs 1227.09 crore. The EBITDA of the company has not shown any significant growth in the last three years, it was almost the same in FY21. The EBITDA margins of the company declined from 24.84% in FY21 to 19.91% in FY23.

Similarly, the net profit of the company for the first six months of FY24 and the full year of FY23 was at Rs 289.91 crore and Rs 567.99 crore respectively. It has marginally gone down from Rs 611.77 crore in FY21. The Net Profit Margin of the company also came down from 12.15% in FY21 to 9.01% in the first half of the financial year 2024.

Emcure Pharmaceuticals IPO Promoters & Shareholding of the Company

Satish Ramanlal Mehta is the main promoter of the company having 41.92% holdings in the company. Though, there are seventeen more members in the promoters group if you count all the promoters holding it would be around 82.97%% stake in the company and the rest is held by public shareholders including BC Investments IV, an affiliate of US-based private equity major Bain Capital, shareholding of 13.09%. For details of all the shareholders see the table below.

S.No. Name of the Shareholder No. of Equity Shares held % of pre-Offer Shareholding
  Promoter Selling Shareholders    
1 Satish Ramanlal Mehta 75,816,748 41.92%
2 Sunil Rajani kant Mehta 2,887,012 1.60%
  Total (A) 78,703,760 43.52%
Promoter Group
1 Everest Trust 14,520,000 8.03%
2 Unity Trust 14,508,000 8.02%
3 Samit Satish Mehta 13,547,632 7.49%
4 Bhavana Satish Mehta 9,388,288 5.19%
5 Namita Vikas Thapar 6,339,800 3.51%
6 Pushpa Rajni kant Mehta 4,336,052 2.40%
7 Sanjay Rajanikant Mehta 3,744,028 2.07%
8 Kamini Sunil Mehta 1,789,960 0.99%
9 Niraj Sunil Mehta 1,100,000 0.61%
10 Rutav Sunil Mehta 1,098,224 0.61%
11 SurekhaUmakant Shah 318,216 0.18%
12 Shaila Sharad Gujar 129,216 0.07%
13 Suhasinee Shah 129,216 0.07%
14 Smita Paresh Shah 129,216 0.07%
15 Swati Hetal kumar Shah 129,216 0.07%
16 Girish Desai 115,716 0.06%
17 Ranjana kumari Desai 28,928 0.02%
  Total (B) 71,351,708 39.46%
  Promoters & Investors Selling Shareholder
1 BC Investments IV Limited 23,673,544 13.09%
2 Arun kumar Purshotam lal Khanna 1,200,000 0.66%
3 Sonali Sanjay Mehta 1,171,040 0.65%
4 Manan Sanjay Mehta 1,100,000 0.61%
5 Vikas Madan Thapar 375,000 0.21%
6 Smita Dilip Shah 216,000 0.12%
7 Berjis Minoo Desai 192,856 0.11%
8 Prakash Kumar Guha 192,856 0.11%
9 Usha Jashvantlal Shah 175,500 0.10%
10 Shree kant Krushna ji Bapat 175,084 0.10%
11 Humayun Dhanrajgir 154,284 0.09%
12 Jashvantlal Chandulal Shah 57,856 0.03%
13 ShriramBalasubramanian 38,572 0.02%
14 Hitesh Sohanlal Jain 25,716 0.01%
15 Devbalaji U 17,356 0.01%
  Total (C) 28,765,664 15.92%
  Grand Total (A+B+ C) 178,821,132 98.90%

Source: DRHP

As per the DRHP offer document filed on December 16, the Promoters and promoter group including Satish Ramanlal Mehta, and Sunil Rajanikant Mehta will be selling 49.85 lakh equity shares in the Offer-For-Sale (OFS), while investor BC Investments IV will be offloading 72.34 lakh equity shares in the company. However, Among other shareholders, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, and Sonali Sanjay Mehta will also be selling shares in the OFS.

Why Invest in Emcure Pharmaceuticals IPO?

While investing in a new company launching the IPO in the primary market or already listed in the secondary market, you need to analyse the various factors. Perform the fundamental analysis to know the competitive strengths and weaknesses of the company.

Also Read: Why is Fundamental Analysis Important for Investing in Stocks

The strength of the company helps it to grow its business, while risk associated with operating the business can affect its growth which can affect the revenue and financial performance of the company. Hence, we brought here the strengths and risk factors of the company that you can consider while investing in the IPO of Emcure Pharmaceuticals.

Also Read: What to Check Before Buying IPO: Things to Know & Is it Safe

Strengths:

  • The pharmaceutical is one the fastest and steadily growing sectors in the world with unlimited opportunities for pharma companies to expand their reach and boost sales with growing demand into various segments of the medicines.
  • Emcure Pharmaceuticals is India's 13th-largest pharmaceutical company with a strong presence in India, Europe and Canada. And by market share in the covered markets Emcure is the fourth largest pharmaceutical company and one of the largest pharmaceutical companies in the gynaecology and HIV antivirals therapeutic areas in India.
  • The company has a strong position in a number of therapeutic areas such as gynecology, cardiovascular, blood-related, pain and analgesics and oncology/anti-neoplastics has been driven by the differentiated product portfolio and first-to-market product launches.
  • The company has demonstrated strong capabilities and a proven track record in building brands. Eight of our brands were ranked among the 300 highest-selling brands, while 17 of its top 20 brands were each ranked among the three highest-selling brands in their respective IPM.
  • The company has a well-established presence in international markets, and operates with believing a strong complement to the domestic business and presents strong opportunities for growth. It has a strong track record of successfully entering and growing its presence in new markets through inorganic expansion.
  • Emcure Pharmaceuticals has strong in-house R&D  expertise,  allowing it to develop a  differentiated portfolio of pharmaceutical products that gives the company a competitive advantage in the markets.
  • The company has 13 manufacturing facilities situated across the states in India. All these facilities are capable of producing pharmaceutical products of a wide range of dosage forms, including oral solids, oral liquids, injectables and including complex injectables.
  • Emcure Pharmaceuticals is managed and operated by the team of highly qualified, experienced and entrepreneurial management team and board helping the company to grow strategically and achieve its business growth with better operational efficiency.
  • Further, the company intends to continue to consolidate its position and increase the market share in the key and leading therapeutic areas, by increasing the penetration of its key brands, and by developing and launching new differentiated products.
  • Moreover, the company also intend to continue to invest in its R&D initiatives and further strengthen its manufacturing capabilities in order to grow the differentiated product portfolio for both the domestic and international markets, with a focus on improving vertical integration to achieve greater control over the product quality, supply chain and operating costs.
  • To deepen and expand its international presence, the company have filed over 1,800 dossiers globally for products offered through differentiated product platforms, such as chiral molecules, complex chemistry products, complex injectables including liposomal and lyophilized injectables, extended-release, iron molecules and biotherapeutics products based on differentiated technologies.
  • To strengthen its presence in the overseas market, the company has pursued strategic acquisitions of companies, products and facilities across key markets as well as in-license pharmaceutical products of other companies for the key and focus therapeutic areas allowing the company to both deepen its presence in the existing markets and facilitate the entry into new markets.

Also Read: What are the Risk Factors Involved in Applying for an IPO

Risks:

  • The pharmaceutical sector is one of the highly regulated industries is and bound to comply with the regulations and quality standards stipulated by various regulatory authorities in respective countries. Getting drug approvals from such authorities is always subject to the risk of disapprovals or penalties in case of being unable to follow the required quality standards and other norms operating in the same industry.
  • Moreover, despite being one of the leading players in a few drug segments, Emcure Pharmaceuticalsis operating in a highly competitive industry and is further expected to face competition in the industry from existing and potential competitors which will be another challenging factor for the company.
  • For the procurement of raw materials and other products, the company is dependent on the various suppliers. Any kind of delay, interruption or reduction in the supply or transportation and cost increase of raw materials, or finished products may also impact the pricing and disrupt the supply of the products and operations of the company.
  • Owing to an increase in operating expenses and high-interest costs, the company is struggling to maintain its operating as well as net profit margins. Hence, dealing with the rise in the cost of raw materials and other operating expenses is another challenging factor for the company.
  • As the company is also exporting its key drugs and medicines to overseas countries, and owing to fluctuations in foreign currency exchange rates the business of the company is also exposed to risks arising from exchange rate fluctuations, which could adversely affect the revenue of the company, especially from the overseas market.
  • Moreover, on the management side, there are outstanding legal proceedings running against the company, promoters, subsidiaries, directors and group companies. Any kind of penalties, impositions or legal actions against any of the entities will not only affect the goodwill but also affect the reputation and brand image of the company.

Also Read: Types of Risks Associated with Investing in the Stock Market

Emcure Pharmaceuticals IPO Grey Market Premium (GMP)

The Grey Market Premium (GMP) of the Emcure Pharmaceuticals IPO is trailing around Rs XXXX. However, depending on the demand and supply of the shares in the grey market, and because of this the GMP will keep fluctuating till the date of the listing.

Also Read: What is Grey Market Premium in IPO: How is GMP Calculated &Reliable

The GMP is not a reliable factor, to know the listing price of any company, including, Emcure Pharmaceuticals IPO. However, it can be considered as the expected listing price of the unlisted company, which launched the IPO and going to list very soon.

Emcure Pharmaceuticals IPO Review & Analysis

The issue price of Emcure Pharmaceuticals IPO is not known yet, as the IPO launch date is not declared by the company. Hence, evaluating the share price of Emcure Pharmaceuticals and comparing the same with its listed peers is not possible right now.

However, while considering the full-year annualized earnings of the company based on its last six months, the EPS is considered at around Rs 29.80 per share. When the share price of Emcure Pharmaceuticals in IPO launch is declared, it can be calculated on the basis of P/E will give an idea of whether the stock price is overvalued or undervalued for investing.

Also Read: What to Know Before Investing in Stocks: 10 Things to Consider

When you compare the share price of Emcure Pharmaceuticals with its peer group companies, and find it is expensive or IPO is launched at a very high premium price compared to its listed, peer you can invest in the company only with the long-term view.

Also Read: Why You Should Invest in the Stock Market: Reasons & Benefits

While, if the Emcure Pharmaceuticals IPO is launched at a discounted price, then you can subscribe for the issue or apply in the IPO with listing gain perspective or keep your investment with the medium to long term investment point of view.

How to Apply for Emcure Pharmaceuticals IPO?

To apply in the Emcure Pharmaceuticals IPO or in any other company, you need a trading account and a demat account in which you can buy or sell and hold your shares allocated in the IPO. If you have already both these accounts with any other broker you can go to their website and find the section to apply in the Emcure Pharmaceuticals IPO.

Also Read: How to Open Demat Account: Benefits and Documents Required

However, if you don’t have any of these accounts, you can apply here at Moneysukh to open atrading and demat account. Moneysukh is one the best discount brokers in India offering the best trading platform to invest or trade in equities, commodities and currency with round-the-clock accessibility through various cross platforms and devices.

Also Read: Equity or Commodity which is better for Trading or more Profitable

With Moneysukh, you will not only get the facility to apply in the secondary market but also can apply in IPOs online using the online trading software like Trade Radar and TradingView charts. Apart from human-backed online trading facilities customers can also trade or invest in the stock market through Algo-trading software to enjoy the best algo-trading platform like Keev to trade with the best Algo-trading intraday strategies to take advantage of high-frequency trading and earn some extra money.

Also Read: How to Start Algo Trading in Moneysukh: A Best Algo Trading Platform

Steps to Apply for Emcure Pharmaceuticals IPO:

Step 1: Wait till the Emcure Pharmaceuticals IPO online bidding opens.

Step 2: Now you have to open trade.moneysukh.com and log in with your User ID & password.

Step 3:After logging under the IPO section you have to select the Emcure Pharmaceuticals IPO.

Step 4:After selecting the open IPO, fill required details like price, quantity, and so on.

Note: Make sure while applying in any IPO, always bid at the cutoff price and then submit your application. 

Step 5:Now make the desired payment and then submit your IPO application successfully.

How to Check Emcure Pharmaceuticals IPO Allotment Status?

Checking the Emcure Pharmaceuticals IPO allotment status is possible once the bidding prices are closed and the basis of allotment is finalized. The allotment of Emcure Pharmaceuticals IPO will depend on the oversubscription into different categories.

Also Read: How to check IPO allotment status on NSE, BSE through Moneysukh

If you have applied through the retail category or HNI category in the Emcure Pharmaceuticals IPO and the IPO is oversubscribed many times, then there are fewer chances of getting the allotment of shares in this IPO. However, you can improve the IPO allotment, if you follow all the rules and regulations while applying for IPOs with tips for investing in the IPOs.

Also Read: How to improve Allotment chances: 15 Tips for investing in IPO

Owing to oversubscription if you don't get an allotment of any shares, your IPO application money will be refunded into the bank account from which you have applied or the fund will be unblocked into your bank account, if you have applied through ASBA.

However, despite the oversubscription of Emcure Pharmaceuticals IPO, if you manage to get the allotment of a few shares then it will be transferred into your demat account before the day of listing. After the listing of the shares, if you are getting good returns, you can sell the shares and book profits or partially keep shares as a long-term investment.

Also Read: Benefits of Investing in the Stock Market: Advantages of Share Market

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