Emcure Pharmaceuticals, one of the leading pharma companies in India, has filed papers with markets regulator SEBI to raise funds via an initial public offer (IPO). It will list the shares on NSE and BSE.
The company is looking to raise up to Rs 4,500-5,000 crore in an offer that would consist of a fresh issue of shares and an offer for sale (OFS). The fresh issue is likely to be worth Rs 1,100 crore whereas the offer for sale would be worth Rs 3,400 crore. Promoters and private equity investors are looking to offload their shares via the IPO.
Promoters Satish and Sunil Mehta will offload 20.30 lakh and 2.5 lakh shares, respectively. Its investor BC Investments IV will offload 99.5 lakh shares. While the Mehtas hold 41.92 and 6.13 percent (Satish and Sunil, respectively) stake in the company, BC Investment holds a 13.09 percent stake.
Emcure is engaged in the development, manufacturing, and marketing of pharmaceutical products across several therapeutic segments. It claims to be a research and development-driven company with a differentiated product portfolio. Its portfolio includes orals, biologics, injectables, and mRNA platforms. The company is currently developing a COVID-19 vaccine via its mRNA platform, which will enable it to target markets in 70-plus countries.
The company wants to utilise the net proceeds from the fresh issue to repay all or a portion of debt and fund other general corporate issues.
Bank of American Securities India, Axis Capital, JM Financial, Credit Suisse Securities are the global coordinators and managers of the issue. BoB Capital Markets is the primary underwriter to the issue.
It is also looking to launch a pre-IPO placement round to raise up to Rs 200 crore. If the placement is successful, the fresh issue size will reduce.
In FY21, the company had reported a net profit of Rs 418.59 crore, higher than the Rs 100 crore profit reported in FY20 and Rs 202 crore in FY19.