Emcure Pharma IPO subscription status: Issue subscribed 75% so far on Day 1

Emcure Pharma IPO subscription status Day 1: Till 2:00 PM, Emcure Pharma IPO was subscribed 75 per cent, led by employees and non-institutional investors

Emcure Pharmaceuticals subscription status: Pharmaceutical major Emcure Pharma's Rs 1,952-crore initial public offer (IPO) walked past the halfway mark on the first day of the bidding on Wednesday, July 3, 2024.

Till 2:00 PM, Emcure Pharma IPO was subscribed 75 per cent, led by employees and non-institutional investors.

The portion reserved for Emcure Pharmaceuticals employees has been subscribed 1.66 times so far, while the portion reserved for NIIs has been booked 1.26x.

Retail investors followed with a subscription level at 93 per cent thus far in the day. The portion reserved for qualified institutional buyers (QIBs), however, has not received any bids.

 

Emcure Pharmaceuticals Ltd (EPL) is a research-focused company involved in the development, manufacturing, and global marketing of pharmaceutical products across key therapeutic areas.

Its portfolio includes oral medications, injectables, and biotherapeutics. With a presence in over 70 countries, including India, Europe, and Canada, EPL operates 13 manufacturing facilities across Sikkim, Gujarat, Maharashtra, Karnataka, and Jammu and Kashmir.

Read More: Namita Thapar-backed Emcure Pharma IPO opens: GMP, price, apply or not?

Emcure Pharma IPO details

Emcure Pharma aims to raise Rs 1,952 crore through the initial public offer (IPO). The IPO, which has a price band of Rs 960 to Rs 1,008, consists of a fresh issue of Rs 800 crore, along with offer of sale (OFS) of shares worth Rs 1,152 crore.

The company aims to use the proceeds from the IPO for the repayment and/or prepayment of all/portion of certain outstanding borrowings availed by the company (Rs 600 crore) and other general corporate purposes.

Emcure IPO will remain open between July 3 and July 5, 2024. Investors can bid in the lots of 14 shares and in multiples thereof.

Emcure Pharma IPO GMP today

The grey market premium (GNP0 of Emcure Pharmaceuticals stood at Rs 295 as on July 3, 2024. At the upper end of the price band of Rs 1,008, this is a listing gain of around 29 per cent.

Emcure Pharma Financials

Emcure Pharmaceuticals' revenue grew at a compounded annual growth rate (CAGR) of 7 per cent over FY22-24, with domestic contributing 48 per cent (10 per cent CAGR) and outgrowing IPM growth.

Exports grew much faster at 20 per cent CAGR, exceeding industry exports (12 per cent CAGR). Emcure Pharma, however, has struggled to boost its profit due to planned expansion using borrowed funds.

Emcure Pharmaceuticals IPO: Should you apply or not?

Most analysts have given either 'Subscribe' or 'Subscribe for long-term' rating to the offer given Emcure Pharma's leading position in the domestic therapeutic area, plans to increase its market share in both India & globally by focusing on its key brands, launching new differentiated products, increased focus on hospitals/pharmacy chains, and persuing organic/inorganic growth.

According to analysts at Motilal Oswal Financial Services, the IPO is reasonably priced at 36.1x FY24 P/E (on diluted basis). The brokerage believes the commencement of new capacities and potential debt reduction post-IPO would aid recovery in profitability. It recommends 'Subscribe for Long Term' to the issue.

Those at Geojit Financial Services, too, have given 'Subscribe for long-term' rating to Emcure Pharma IPO.

"Emcure Pharma has a strong R&D expertise in differentiated products, established domestic and international presence, strong focus on the women's healthcare market, and diversified product portfolio. It is expected to improve its profitability post IPO. At the upper price band of Rs 1,008, EPL is available at a P/E of 36x (FY24), which appears to be fully priced," the brokerage said in its report.