Pune-based Emcure Pharmaceuticals is set to open for business on July 3 with an initial public offering (IPO) that will allow investors to subscribe for shares through July 5. The price range that the business has specified for each share is Rs.960–1008. A total of Rs.1,952 crore would be issued in this IPO at the higher price band, consisting of a new issue of Rs.800 crore and an offer for sale (OFS) of Rs.1,151 crore by current promoters and shareholders. On July 2, anchor investor bidding will kick off the IPO, and on July 8, shares will be allotted. On July 9, refunds will be handled, and on July 10, the company’s shares will go live on the BSE and NSE.
OFS shares are sold by well-known promoters and shareholders like Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar and Samit Satish Mehta. Other shareholders including Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, BC Investments IV, Arunkumar Purshotamlal Khanna, Berjis Minoo Desai and Sonali Sanjay Mehta are also divesting their shares. The IPO includes reservation of 1,08,900 shares to employees at a discounted price and the net issue is targeted at 50% qualified institutional buyers (QIBs), 35% retail investors and 15% non-institutional investors (high). high value individuals).
Emcure Pharmaceuticals, which operates in India, Europe and Canada, plans to use the net proceeds of the fresh issue of Rs.600 crore to repay its debt, which stood at Rs.2,091.9 crore as of March 2024. The remaining funds are used for general financing of the companies activities goals The market capitalization of the company is expected to be around Rs. 18,260.Emcure Pharmaceuticals competes with industry leaders such as Dr. Reddy’s Laboratories, Cipla, Alkem Laboratories, Torrent Pharmaceuticals, Mankind Pharma, Abbott India and JB Chemicals. The merchant bankers for the issue are Kotak Mahindra Capital Company, Axis Capital, Jefferies India and JP Morgan India, while Link Intime India is the offer registrar.
Investors are advised to update their mobile number and email address with stockbrokers or custodians to receive real-time information about their transactions. This policy ensures that investors receive same-day alerts on all debits and other important transactions in their Demat accounts directly from NSDL/CDSL.The key points to remember about an IPO is that investors do not need to issue checks. Instead, they can authorize their bank to make the payment by providing their bank account number and signing the application form. This method ensures that the money remains in the investor’s account until distribution, eliminating the worry of repayments.
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SOURCE:
MEDICAL DIALOGUES
