Emcure Pharmaceuticals IPO (Emcure Pharma IPO) Review

 
Emcure Pharma IPO Review

IPO Open Date: July 3, 2024

IPO Close Date: July 5, 2024

IPO Price: ₹960 to ₹1008 per share

Lot Size: 14 Shares

Listing: July 10, 2024

Emcure Pharma is scheduled to hit the market on July 3, 2024 and close on July 5, 2024. Emcure Pharma plans to raise around ₹1,952.03 Cr through an IPO with a sale of up to 19,365,346 equity shares of ₹10 each. The Retail offered 35%, QIB Shares Offered 50%, HNI Shares Offered 15%.

Emcure Pharmaceuticals Limited, established in 1981, is an Indian pharmaceutical company known for developing, manufacturing, and marketing a diverse range of pharmaceutical products across various therapeutic areas. The company holds a significant position in the Indian pharmaceutical market, ranking 13th in domestic sales and 4th in market share for the MAT September 2023. Emcure Pharma excels particularly in gynaecology and HIV antiviral therapies, and its strong performance is evident in its sales growth of 10.80% CAGR between September 2019 and September 2023, surpassing the industry average.

With a robust presence in India, Emcure Pharma contributes significantly to the company's revenue, with sales in India accounting for over 50% of the total revenue in both the six months ended September 30, 2023, and the Financial Year 2023. The company's commitment to research and development is showcased through its 552 scientists and five research facilities in India. Moreover, Emcure Pharma's expansive manufacturing capabilities, comprising 13 facilities producing various pharmaceutical and biopharmaceutical products, coupled with a well-established marketing and distribution network supported by over 5,000 field personnel, underline its strong foothold in the pharmaceutical industry.

Emcure Pharmaceuticals


Emcure Pharma IPO Details

Emcure Pharma IPO opens on July 03, 2024, and closes on July 05, 2024. The Listing date for Emcure Pharma IPO is on July 10, 2024. The price band for IPO is ₹960 to ₹1008 per share and lot size of 14 Shares.

IPO DateJuly 03, 2024 to July 05, 2024
Listing DateJuly 10, 2024
Price₹960 to ₹1008 per share
Lot Size14 Shares
Issue Size₹1,952.03 Cr
Face Value₹10 per share

Emcure Pharma IPO Tentative Timetable

Emcure Pharma opening date is July 03, 2024 and close date is July 05, 2024. The IPO allotment date is July 08, 2024. The refund initiation of IPO is on July 09, 2024. The credit of shares in demat account is on July 09, 2024. The listing date is on July 10, 2024.

EventDate
IPO OpeningJuly 03, 2024
IPO ClosingJuly 05, 2024
IPO Allotment DateJuly 08, 2024
Refund InitiationJuly 09, 2024
Shares Credit to DematJuly 09, 2024
Lisiting DateJuly 10, 2024

Emcure Pharma IPO Lot Size

Lot Size of this IPO is 14 shares. A retail-individual investor can apply for up to 14 lots (196 shares or ₹197,568).

CategoryLotsSharesAmount
Retail(Minimum)114₹14,112
Retail(Maximum)14196₹197,568
S-HNI (Minimum)15210₹211,680
B-HNI (Minimum)71994₹1,001,952

Emcure Pharma IPO Promoter Holding

Pre Issue Share Holding98.90%
Post Issue Share Holding

Emcure Pharma IPO Review

Emcure Pharmaceuticals Ltd. (EPL) is a prominent Indian pharmaceutical company specializing in developing, manufacturing, and globally marketing a wide range of pharmaceutical products. Established as a research and development-driven company, EPL's product portfolio encompasses orals, injectables, and biotherapeutics. This diverse range has allowed EPL to penetrate multiple target markets across more than 70 countries, with substantial presence in India, Europe, and Canada. As of the financial year 2024, EPL is the 13th largest pharmaceutical company in India in terms of domestic sales, and the largest in the gynecology and HIV antivirals segments. The company’s strategy leverages its differentiated product portfolio to establish a strong market position across major therapeutic areas, including gynecology, cardiovascular, and oncology. By focusing on innovation and specialized products, EPL has carved a niche in the highly competitive pharmaceutical landscape, which is reflected in its robust domestic and international market performance.

Financially, EPL has shown a steady increase in its top-line revenue over the past few years, a testament to its expanding market reach and product acceptance. The company's total income rose from Rs. 5918.86 crore in FY22 to Rs. 6715.24 crore in FY24. However, despite the growth in revenue, EPL's net profit has experienced a declining trend during the same period. The net profit fell from Rs. 702.56 crore in FY22 to Rs. 527.58 crore in FY24, primarily due to higher interest and depreciation costs associated with recent expansions funded through borrowing. This financial strategy aimed to bolster EPL's production capacity and market reach, and while it has temporarily impacted profitability, the anticipated reduction in debt post-IPO is expected to significantly improve the company's bottom line. With an average EPS of Rs. 29.68 and an average RoNW of 21.08% over the last three fiscal years, EPL remains a financially resilient company despite the short-term profit decline.

The upcoming IPO of EPL aims to raise approximately Rs. 1952.03 crore, with the fresh equity share issue amounting to Rs. 800 crore and the remaining Rs. 1152.03 crore through an Offer for Sale (OFS). The funds from the IPO are intended to repay or prepay certain borrowings, enhancing EPL's financial health, and for general corporate purposes. Priced between Rs. 960 to Rs. 1008 per equity share, the IPO appears fully priced based on the company's earnings, with a P/E ratio of 36.13 when annualizing FY24 earnings. This valuation reflects the company's established market position and growth potential. Investors should consider EPL's long-term prospects, particularly its strategic focus on high-margin chronic therapeutic areas and its strong domestic market performance. While the initial valuation might seem high and profit trends are currently declining, the reduction of debt and the company's robust market strategy offer substantial potential for medium to long-term rewards, making it a viable investment for those looking to capitalize on the pharmaceutical sector's growth trajectory.

Emcure Pharma IPO Subscription Status (Bidding Details)

Table not found

Emcure Pharma IPO Broker Recommendations

  • Capital Market: To be updated soon
  • Anand Rathi: To be updated soon
  • SMC Global: To be updated soon
  • Arihant Capital: To be updated soon

Emcure Pharma IPO FAQs

What is Emcure Pharma IPO?

Emcure Pharma is issuing 19,365,346 equity shares with a face value of ₹10 each, totaling up to ₹1,952.03 Cr. The shares are being offered at a price of ₹960 to ₹1008 each, with a minimum order quantity of 14 shares.

Link Intime India Private Ltd is the registrar for the IPO, and the shares are planned to be listed on the BSE and NSE.

When Emcure Pharma IPO will open?

Emcure Pharma will open on July 03, 2024 for QIB, NII, and Retail Investors.

When Emcure Pharma IPO will end?

Emcure Pharma will end on July 05, 2024.

What is Emcure Pharma IPO Size?

Emcure Pharma IPO size is 1,952.03 Cr.

What is Emcure Pharma IPO Price Band?

Emcure Pharma price band is ₹960 to ₹1008 per share.

What is the Emcure Pharma IPO Allotment Date?

Emcure Pharma allotment date is July 08, 2024.

What is the Emcure Pharma IPO Listing Date?

Emcure Pharma listing date is July 10, 2024. The IPO is to be listed on BSE and NSE.

How to Emcure Pharma IPO through Zerodha?

To apply for the IPO “Emcure Pharma” on Zerodha, log in to the Zerodha website or app, go to the Portfolio section, and click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Zerodha.

How to Apply Emcure Pharma IPO through Upstox?

To apply for the IPO “Emcure Pharma” on Upstox, log in to the Upstox website or app, click on IPO. Then, click on the “Apply” button and enter your UPI ID, the desired quantity, and the price. Submit the IPO application form and then approve the mandate on your UPI app. To complete the process, you should have an demat account. If you don't have one, open a demat account with Upstox.

How to check Emcure Pharma IPO Allotment Status?

For Emcure Pharma IPO Allotment status check you can visit this link, select the desired IPO and enter your PAN to check the allotment status.

What is Emcure Pharma IPO GMP?

You can check out here: Emcure Pharma IPO GMP

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About Ishika Agarwal

Ishika Agarwal is a seasoned financial writer with a strong background in the stock market and investment sector. Ishika has a passion for analyzing and interpreting complex financial data to provide valuable insights to her readers.

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