Emcure Pharmaceuticals Limited is launching its IPO on July 3, 2024, with subscriptions closing on July 5, 2024. Established in 1981, the company develops, manufactures, and markets a wide range of pharmaceutical products, including orals, injectables, and biotherapeutics, across several major therapeutic areas. It is the 4th largest by market share in its covered markets and the largest in gynecology and HIV antivirals in India.
The company offers a range of pharmaceutical products, including orals, injectables, and biotherapeutics, reaching markets in over 70 countries. Its differentiated portfolio spans gynecology, cardiovascular, vitamins, minerals and nutrients, HIV antivirals, blood-related, and oncology/anti-neoplastic therapeutic areas. Sales outside India contributed 51.72% of total revenue for the Financial Year 2024.
They have five R&D facilities in India, with a team of 548 scientists. As of March 31, 2024, they had filed over 1,800 dossiers globally and got 220 patents, with 30 pending applications. Furthermore, the company operates 13 manufacturing facilities in India, which can produce a wide range of pharmaceutical and biopharmaceutical products.
| Funds to be Raised in the IPO | Amount |
|---|---|
| Overall | ₹1,952.03 crores |
| Fresh Issue | ₹800.00 crores |
| Offer for sale | ₹1,152.03 crores |
Proceeds from the Issue:
Debt Reduction: The company plans to repay, either fully or partially, certain borrowings obtained by itself and its subsidiaries. This action aims to reduce the debt burden and enhance the company’s financial health.
Working capital requirements: The proceeds will be used to meet the operational expenses and ensure the smooth functioning of the business.
General corporate purposes: The remaining proceeds will be used for other general corporate purposes as decided by the company’s management.
Financial Snapshot
| Financial Year Ended | March 2022 | March 2023 | March 2024 |
|---|---|---|---|
| Total Assets | 6,063.47 | 6,672.53 | 7,806.16 |
| Revenue | 5,918.86 | 6,031.72 | 6,715.24 |
| Profit After Tax | 702.56 | 561.85 | 527.58 |
| EPS | 36.62 | 29.42 | 27.54 |
All figures except EPS are in ₹ Crores.
Risk factors
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Manufacturing and Regulatory Compliance: Potential manufacturing or quality control issues may harm our reputation, trigger regulatory actions, and lead to litigation. We adhere to strict regulations by Indian and international authorities, undergoing frequent inspections.
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Debt Financing and Covenants: Secured by company assets, debt financing imposes conditions and covenants that restrict actions like capital changes, dividends, and investments. Violating these terms could impact financial stability.
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Dependency on Distribution Partners: The company relies on third parties for global product distribution. Failure to maintain or expand these relationships may affect business performance.
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Ongoing Legal Issues: Despite divesting U.S. operations, ongoing U.S. civil proceedings, including antitrust cases and state complaints, pose potential liabilities and financial risks.
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R&D and Product Risks: Developing and commercializing pharmaceutical products entails risks such as R&D failures, product performance issues, regulatory challenges, and compliance demands. Failures could hinder product launches and impact business outcomes.
IPO Schedule
| Issue Period | 03rd July to 05 July 2024 |
|---|---|
| Price band | ₹ 960 to 1008 |
| Minimum Bid quantity | 14 shares |
| UPI Mandate Deadline | 5 PM, 05 July 2024 |
| Allotment Finalization | 08 July 2024 |
| Refund Initiation | 09 July 2024 |
| Share Credit | 09 July 2024 |
| Listing Date | 10 July 2024 |
| Mandate end date | 20 July 2024 |
| Lock-In End Date for Anchor Investors (50%) | 07 August 2024 |
| Lock-In End Date for Anchor Investors (Remaining) | 06 October 2024 |
Note:
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The above schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion.
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The allotment status will be available by July 09, 2024, on the Registrar’s website and the NSE website.
