Emcure files DRHP with market regulator SEBI; eyes raising Rs 4,500 crore via IPO

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The IPO buzz does not seem to fade anytime soon as the pharmaceuticals industry is now going to see new entrants in the stock markets.

Pune-based Emcure Pharmaceuticals filed its draft red herring prospectus (DRHP) on August 20 with the market regulator SEBI to raise money through an initial public offer.

Emcure is one of India’s biggest unlisted pharma companies, is all set to again attempt to publicly list its shares on exchanges. In 2014, the company had attempted to hit the stock exchanges, but reportedly did not pursue it after Bain Capital invested about Rs 226 crore, by which it was able to meet its immediate liquidity needs.

IPO Details

The pharma company is ranked as (i) the 12th largest pharmaceutical company in India and (ii) the largest pharmaceutical company in India in the gynaecology, blood related and HIV antivirals therapeutic areas, based on sales in India in the Financial Year 2021, according to CRISIL.

The company is now looking to raise about Rs 4,500 crore including fresh shares of up to Rs 1,100 crore and an offer for sale by promoters and an existing investor of up to 1.8 crore shares.

As per the prospectus filed with SEBI, the OFS includes promoters Satish Mehta selling up to 2,030,000 equity shares and Sunil Mehta aggregating up to 2,50,000 equity shares. Other selling shareholders include private equity investor Bain Capital.

The company proposes to utilise net proceeds from the fresh issue towards repayment of debt Private equity firm Bain Capital owns about 13% stake in Emcure.

Financials

In terms of financials, in the fiscal 2021, the company reported profit at Rs 418.59 crore on the revenue of Rs 6091.8 crore. This compares with Rs 100.6 crore profit in FY20 and Rs 202.96 crore in FY19.

Axis Capital Limited, BofA Securities India Limited, Credit Suisse Securities (India) Private Limited, JM Financial Limited are the Global Co-Ordinators and BOB Capital Markets Limited is the Book Running lead manager to the issue.

Emcure has a differentiated product portfolio that includes orals, injectables and biologics, as well as an mRNA platform through which it is currently developing a COVID-19 vaccine, which has enabled it to reach a range of target markets across over 70 countries with a strong presence in Europe and Canada.