Emcure Pharma Raises Rs 583 Cr from Anchor Investors Pre-IPO

Bain Capital-backed Emcure Pharmaceuticals announced it has raised Rs 583 crore from anchor investors ahead of its initial public offering (IPO). The anchor book includes prominent investors such as HDFC Mutual Fund, ICICI Prudential MF, SBI MF, Nippon India MF, Abu Dhabi Investment Authority, Goldman Sachs Asset Management, Nomura, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, and SBI Life Insurance Company.

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The pharma company has allocated 57.8 lakh equity shares to 48 funds at Rs 1,008 each, totalling Rs 582.6 crore. The IPO will be open for public subscription from July 3 to July 5. The issue price band is set between Rs 960 and Rs 1,008 per share.

IPO Details and Allocation

The IPO consists of a fresh issuance of equity shares worth Rs 800 crore and an offer for sale (OFS) of 1.14 crore equity shares amounting to Rs 1,152 crore at the upper price band. This brings the total public issue size to Rs 1,952 crore. Promoter Satish Mehta and investor BC Investments IV Ltd are among those selling shares in the OFS.

Satish Mehta currently holds a 41.85% stake in Emcure Pharmaceuticals, while BC Investments owns a 13.07% stake. The proceeds from the fresh issue will be used to repay debt and for general corporate purposes.

Market Capitalisation and Investor Allocation

Brokerage firms estimate that Emcure Pharmaceuticals' market capitalisation will exceed Rs 19,000 crore post-issue. The Pune-based company develops, manufactures, and markets a wide range of pharmaceutical products globally across several major therapeutic areas.

In the IPO, up to 108,900 equity shares have been reserved for employees. Additionally, half of the issue size is reserved for qualified institutional investors (QIBs), 35% for retail investors, and the remaining 15% for non-institutional investors.

Subscription Details and Listing

Investors can bid for a minimum of 14 shares and in multiples of 14 shares thereafter. Kotak Mahindra Capital Company, Jefferies India, Axis Capital, and JP Morgan India are the book-running lead managers for the issue. The equity shares are expected to list on the BSE and NSE on July 10.

Earlier this month, Emcure Pharmaceuticals received approval from SEBI to proceed with the initial share-sale.