Emcure Pharmaceuticals Limited, one of India’s major pharmaceutical businesses, has submitted its Draft Red Hearing Prospectus (DRHP) to obtain funds through an initial public offering (IPO) with market regulator Securities and Exchange Board of India (SEBI).
Emcure Pharmaceuticals, headquartered in Pune, Maharashtra, is an Indian pharmaceutical firm. Tablets, capsules (both softgel and hard-gel capsules), and injectables are all part of Emcure’s product line.
Let’s take a look at Emcure Pharmaceuticals IPO Plans
A new issue of up to Rs 1,100 crores in shares and an offer to sell up to 18,168,356 shares were part of the offering. Promoters and a private equity firm, Bain Capital, are among those who will sell their stock.
The company is considering a pre-IPO placement of up to Rs 200 crore. When this position is reached, the fresh issue size will be reduced. The new offering’s proceeds will be used to pay down debt and for other corporate purposes.
In fiscal 2021, the company made a profit of Rs. 418.59 crore on a turnover of Rs. 6091.80 crore. The profit in FY20 was Rs. 100.61 crore, compared to Rs. 202.96 crore in FY19.
Emcure portrays itself as an R&D-driven company with a differentiated product portfolio that includes oral, injectables, and biologics, as well as an mRNA platform via which it is now developing a COVID-19 vaccine, allowing it to target a broad range of markets in over 70 countries.
Axis Capital, BofA Securities India, Credit Suisse Securities, JM Financial NSE -2.59 per cent, and BOB Capital Markets are the Global Coordinators and Book Running Lead Managers for the issue.
Satish and Sunil Mehta, the company’s promoters, will sell up to 2.03 million and 0.25 million shares in the IPO, respectively, while Bain Capital, a private equity firm, will sell up to 9.95 million shares.
According to Crisil, based on sales in India in FY21, Emcure is the largest in the gynaecology, blood-related, and HIV antivirals therapeutic categories.
Dr Shailesh Ayyangar, Vijay Gokhale, Hitesh Jain, and D. Vidya Yeravdekar have been appointed as independent directors ahead of the IPO. Berjis Desai, a lawyer, took over as chairman of the board earlier this year.
In 2014, the business intended to go public on the stock exchange but decided against it after Bain Capital contributed Rs 226 crore to cover its urgent liquidity needs.
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