Emcure Pharmaceuticals is coming up with an IPO worth INR 1,952.03 crores, consisting of a fresh issue of shares worth INR 800 crores and an offer to sell 1.152.03 crores of existing equity shares. The company will use the funds raised for repayment, prepayment of borrowings, and general corporate purposes.
Emcure Pharmaceuticals IPO – Important Dates
| Emcure Pharmaceuticals IPO Date | July 3, 2024 to July 5, 2024 |
| Emcure Pharmaceuticals IPO Listing Date | July 10, 2024 |
| Emcure Pharmaceuticals IPO Price | INR 960-1008 per share |
| Emcure Pharmaceuticals IPO Lot Size | 14 shares |
| Emcure Pharmaceuticals IPO Total Issue Size | INR 1,952.03 crores |
| Emcure Pharmaceuticals IPO Basis of Allotment | July 8, 2024 |
| Emcure Pharmaceuticals IPO Initiation of Refunds | July 9, 2024 |
| Emcure Pharmaceuticals IPO Credit of Shares to Demat | July 9, 2024 |
| Emcure Pharmaceuticals IPO Issue Type | Book Built Issue IPO |
| Emcure Pharmaceuticals IPO Listing At | BSE, NSE |
Emcure IPO – Company Profile
Emcure Pharmaceuticals, a prominent Indian pharmaceutical company, specializes in research, development, and global marketing of a diverse product range. Ranked 13th in India and 4th globally by market share, they lead in gynecology and HIV antivirals domestically, guided by experienced promoters and a dedicated management team.
The company extends its differentiated product portfolio to 70+ countries through international distribution capabilities and strategic alliances. The diversified product range and global presence create a resilient business model, fostering organic growth, brand expansion, acquisitions, and in-licensing arrangements.
Emcure Pharmaceuticals boasts 13 cutting-edge manufacturing facilities in India, enabling the production of diverse pharmaceutical and biopharmaceutical products, including oral solids, injectables, and biotherapeutics. Vertical integration ensures cost-effective manufacturing, quality control, and safeguarding intellectual property for specialty products.
Emcure IPO- Fundamental Analysis
Emcure Pharmaceuticals financial analysis reveals a mixed performance. Revenue has increased steadily, indicating growth. However, declining profitability, EPS, and RoNW suggest challenges in generating returns, despite improved liquidity and increased total assets.
- Revenue Trend: The revenue increased from ₹58,553.87 million in March 2022 to ₹59,858.11 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 66,582.51 million, crossing the previous year’s annual benchmark.
- Equity and Liabilities: Both equity and total liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion.
- Profitability: The profit after tax (PAT) has decreased from ₹7,025.56 million in March 2022 to ₹5,275.75 million by March 2024. This decline in profitability could be a source of concern for investors.
- Earnings per Share (EPS): The diluted EPS has also decreased from ₹36.62 in March 2022 to ₹27.54 by March 2024, reflecting lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has declined from 33.32% to 16.87%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
Emcure Pharmaceuticals Ltd IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in Million) | 58,553.87 | 59,858.11 | 66,582.51 |
| Equity (₹ in Million) | 21,141.42 | 26,496.60 | 31,217.65 |
| Expenses (₹ in Million) | 49,463.12 | 52,783.55 | 59,780.82 |
| Profit and Loss After Tax (₹ in Million) | 7,025.56 | 5,618.45 | 5,275.75 |
| RoNW (%) | 33.32 | 21.27 | 16.87 |
| NAV per Equity Share (₹) | 109.90 | 138.30 | 163.22 |
| Diluted EPS only (₹) | 36.62 | 29.42 | 27.54 |
| Total Assets (in millions) | 60,634.69 | 66,725.31 | 78,061.63 |
| Total Liabilities (in millions) | 39,493.27 | 40,228.71 | 46,843.98 |
| Current Ratio | 1.15 | 1.27 | 1.33 |
Emcure IPO Peer Comparison
Emcure Pharmaceuticals, with robust revenue at ₹59,858.11 million, showcases competitive financials. Among peers, Abbott India stands out with high EPS and RoNW, while Dr. Reddy’s Laboratories presents strong P/E and NAV, providing investors with diverse options for consideration.
| Company | Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Emcure Pharmaceuticals Limited | 59,858.11 | 10 | NA | 29.42 | 29.42 | 21.27 | 138.30 |
| Dr. Reddy’s Laboratories Limited | 246,697.00 | 5 | 20.45 | 271.47 | 270.90 | 19.36 | 1,398.33 |
| Cipla Limited | 227,531.20 | 2 | 34.55 | 34.72 | 34.69 | 11.97 | 290.01 |
| Alkem Laboratories Limited | 115,992.60 | 2 | 58.25 | 82.31 | 82.31 | 10.88 | 756.52 |
| Torrent Pharmaceuticals Limited | 96,201.50 | 5 | 55.66 | 36.79 | 36.79 | 20.09 | 183.13 |
| Mankind Pharma Limited | 87,494.33 | 1 | 57.80 | 32.00 | 32.00 | 17.24 | 185.61 |
| Abbott India Limited | 53,487.30 | 10 | 51.10 | 446.78 | 446.78 | 29.78 | 1,500.54 |
| J. B. Chemicals & Pharmaceuticals Limited | 31,492.83 | 2 | 55.72 | 26.50 | 26.17 | 16.52 | 320.55 |
Emcure Pharmaceuticals Ltd IPO Objective
The main objective of Emcure Pharmaceuticals Limited’s IPO is to repay and prepay all or a portion of certain outstanding borrowings availed by the company.
- Repayment and prepayment of all or a portion of certain outstanding borrowings availed by the company: The company plans to use INR 640 crores from the Net Proceeds to prepay certain loans, subject to varying due amounts and terms. Factors influencing the choice of repayments or prepayments in borrowing arrangements encompass maturity, costs, conditions, penalties, legal compliance, and commercial considerations.
- General Corporate Purposes: The company plans to use the net proceeds for general corporate purposes, including funding organic and inorganic growth, strengthening marketing and brand building, capital expenditure for operational maintenance, investing in subsidiaries, and addressing ongoing corporate contingencies.
Emcure IPO Risks and Challenges
Emcure Pharmaceuticals’ risk includes regulatory compliance, potential product recalls, supply chain disruptions, and dependency on local distributors. Regulatory changes, compliance issues, and delays in approvals can adversely affect business operations, financial conditions, and operational results.
- The pharmaceutical company adheres to regulations from various global agencies. While past inspections yielded no critical remarks, a 2019 USFDA warning letter prompted corrective actions. Recalls occurred due to contamination and packaging issues. Ongoing compliance is crucial to prevent regulatory actions and product liability claims.
- Emcure Pharmaceuticals operates in a highly regulated industry, requiring various permits and approvals. Failure to obtain or maintain these approvals, compliance issues, or regulation changes could adversely impact business operations, financial conditions, and results. Delays in product approvals and reliance on local distributors pose additional risks.
- Supply chain disruptions or price increases in outsourced raw materials and finished products can negatively impact product supply, pricing, and overall business for Emcure Pharmaceuticals, leading to adverse effects on cash flows, financial conditions, and operational results.
Emcure IPO – Industry & Market Potential
The global pharmaceutical industry, traditionally concentrated in high-income regions, has seen significant growth in middle-income countries like India and China. These “Pharmerging” markets are crucial for multinational companies, with notable increases in pharmaceutical exports, though high-income regions lead in research and development expenditures.
As the global population approaches 8 billion in 2023, per capita medicine usage rises, driven by emerging markets like China, India, Brazil, and Indonesia. Factors include improved healthcare infrastructure, increased income, and expanded insurance coverage, narrowing the gap with developed markets. Continued investment will influence future growth.
The Indian pharmaceutical industry’s key growth drivers include the rising prevalence of non-communicable diseases, expected 10-11% CAGR in the chronic segment from FY2023 to FY2028, population growth, and government initiatives like the PLI scheme to encourage domestic ingredient manufacturing.
Emcure Pharmaceuticals IPO – Type of Offer
Emcure Pharmaceuticals plans a fresh issue of shares, seeking INR 800 crores to augment the capital needs of the company. Additionally, the company proposes an offer for sale, intending to sell 1,152.03 crore existing shares.
1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 800 crores. The company intends to utilize the proceeds from the fresh issue for repayment, prepayment of borrowings, and general corporate purposes for the company.
2. Offer for sale: Emcure Pharmaceuticals is offering to sell 1,152.03 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Satish Ramanlal Mehta | 1,730,000 |
| Sunil Rajanikant Mehta | 40,000 |
Emcure Pharmaceuticals IPO Offer Size
The offer size of the Emcure Pharmaceuticals IPO is INR 1,952.03 crore, consisting of a fresh issue of shares worth 800 crores and an offer to sell 1,152.03 crore shares. The funds generated will be used for repayment, prepayment of borrowings, and general corporate purposes for the company.
Emcure IPO Allotment Structure
Emcure Pharmaceuticals allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is also set aside for the eligible employees.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Eligible Employees: A portion of the issue is reserved for eligible employees.
How to apply for an Emcure Pharmaceuticals IPO?
To apply for the Emcure Pharmaceuticals IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Emcure Pharmaceuticals IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Emcure Pharmaceuticals Limited’s IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Emcure Pharmaceuticals IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Emcure Pharmaceuticals IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Emcure Pharmaceuticals IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Emcure Pharmaceuticals IPO:
Registrar’s Website: Visit the website of Link In Time India Private Limited, the registrar of the Emcure Pharmaceuticals IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Emcure Pharmaceuticals IPO Offer Registrar
The registrar for the Emcure Pharmaceuticals IPO is Link In Time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In Time India Private Limited
C-101, 1stFloor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai 400 083
Maharashtra, India
Tel: +91 810811 4949
E-mail: [email protected]
Website: www.linkintime.co.in
Emcure Pharmaceuticals IPO FAQs
1. What is the allotment date of the Emcure Pharmaceuticals IPO?
The allotment date of the Emcure Pharmaceuticals IPO is July 8, 2024.
2. What is the price band of the Emcure Pharmaceuticals IPO?
The price band of the Emcure Pharmaceuticals IPO shares issued by the company is INR 960-1008 per share.
3. What is the size of the Emcure Pharmaceuticals IPO?
The offer size of the Emcure Pharmaceuticals IPO is INR 1,952.03 crore, consisting of a fresh issue of shares worth 800 crores and an offer to sell 1,152.03 crore shares. The funds generated will be used for repayment, prepayment of borrowings, and general corporate purposes for the company.
4. What is the listing date of the Emcure Pharmaceuticals IPO?
The listing date of the Emcure Pharmaceuticals IPO issue is July 10, 2024.
