 "Emcure Pharmaceuticals gets market regulator Sebi's approval for IPO")
Pune-based Emcure Pharmaceuticals got the market regulator Sebi’s nod for the launch of its initial public offering (IPO) which comprises a fresh issuance of equity shares worth Rs 800 crore and an offer for sale (OFS) of 13.6 million equity shares.
The IPO is expected to hit the market within a month, sources close to the development indicated.
According to the draft red herring prospectus (DRHP) the proceeds of the fresh issue will be used towards payment of debt and for general corporate purposes. Emcure filed a DRHP in December last year and it got a nod from the regulator last week.
Emcure Pharma had initially filed draft papers for its IPO in August 2021, outlining a fresh issue of Rs 1100 crore and OFS of 18 million equity shares. At that time the fund-raising target was estimated to be around Rs 4500-5000 crore, according to market sources.
The company had also received the Sebi nod to proceed with IPO plans in December 2021. However, it did not launch the IPO at the time.
As on September 30, 2023 the total outstanding borrowings of Emcure was Rs 2012.8 crore on a consolidated basis. The net proceeds would be used towards payment of all or a portion of the principal amount on certain borrowings and the accrued interest.
Promoters and promoter group members, including Satish Ramanlal Mehta and Sunil Rajanikant Mehta, are set to sell 4.98 million equity shares in the OFS.
More From This Section
Other stakeholders, such as Arunkumar Purshotamlal Khanna, Berjis Minoo Desai, and Sonali Sanjay Mehta, will also participate in the OFS.
According to Pharmarack, Emcure (along with its arm Zuventus) ranks 12th in the domestic pharma market as of May 2024.
Its product portfolio includes orals, injectables, biotherapeutics and has presence across 70 countries including India, Europe and Canada.
Emcure has 13 manufacturing facilities across the states of Maharashtra, Gujarat, Sikkim and Karnataka and the union territory of Jammu and Kashmir, in India.
In the December DRHP, Emcure had noted that in the last 18 months it has begun commercial production at three manufacturing facilities- Biotech formulations at Hinjewadi near Pune (June 2023), Oncology injectables at Sanand, Gujarat (April 2023) and orals facility at Mehsana in Gujarat.
The orals facility at Kadu, Gujarat commissioned in September 2023 is in ramp up phase.
“Collectively, these newly operational facilities have increased our installed manufacturing capacities by 22.33 million vials and 1,055.72 million tablets. We expect these new manufacturing capacities and capabilities to help meet the growing demand for our differentiated product portfolio and also allow us to take our products to newer markets,” Emcure had said.
Kotak Mahindra Capital Company, Jefferies India, Axis Capital, and JP Morgan India are the book-running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.
ALSO READ: ixigo IPO to put spotlight on Easy Trip, Yatra; Are they worth your money?