Bain Capital-backed Emcure Pharma IPO fully subscribed on Day 1 of offer

The initial public offering (IPO) of Bain Capital-backed Emcure Pharmaceuticals Ltd got fully subscribed by 1.32 times on the first day of the share-sale on Wednesday amid encouraging participation from institutional investors.

The initial share-sale received bids for 1,80,25,840 shares against 1,37,03,538 shares on offer, as per NSE data. The category for non-institutional investors got subscribed 2.70 times, while the quota for retail individual investors (RIIs) received 1.39 times subscription. The portion for qualified institutional buyers (QIBs) got subscribed 7 per cent.

The issue, with a price band of Rs 960 to Rs 1,008 per share, will be open for public subscription till July 5. The IPO comprises fresh issuance of equity shares worth Rs 800 crore and an offer of sale (OFS) of 1.14 crore equity shares to the tune of Rs 1,152 crore, at the upper end of the price band, by promoters and existing shareholders. This aggregates the total public size to Rs 1,952 crore.

 

Those selling shares in the OFS include promoter Satish Mehta and investor BC Investments IV Ltd, an affiliate of US-based private equity major Bain Capital. Currently, Satish Mehta holds a 41.85 per cent stake in the company and BC Investments owns a 13.07 per cent stake.

Proceeds of the fresh issue will be used towards payment of debt and for general corporate purposes. Emcure Pharmaceuticals on Tuesday said it has garnered Rs 583 crore from anchor investors.

Pune-based firm Emcure Pharmaceuticals is engaged in developing, manufacturing, and globally marketing a broad range of pharmaceutical products across several major therapeutic areas. Kotak Mahindra Capital Company, Jefferies India, Axis Capital, and JP Morgan India are the book-running lead managers to the issue.

The equity shares of the company will list on the BSE and the NSE.