Emcure Pharmaceuticals IPO - 7 Things to Know

Emcure Pharmaceuticals IPO

by 5paisa Research Team Last Updated: 2022-12-10T19:36:52+05:30

Emcure Pharmaceuticals Ltd had filed the DRHP for its proposed IPO back in October 2021 and has already got approval from SEBI for its proposed IPO. The company is expected to launch its IPO in February 2022 after the Union Budget announcement.

7 Important Things to know about Emcure Pharmaceuticals IPO

1) Emcure Pharmaceuticals Ltd has filed for a Rs.5,000 crore IPO with SEBI which is already approved. The IPO comprises of a fresh issue of Rs.1,100 crore and there will be an offer for sale component of Rs.3,900 crore in the Emcure Pharmaceuticals IPO. Promoters of Emcure Pharma and some of the early investors in Emcure will take partial exit via the OFS.

2) The fresh issue component of Rs.1,100 crore will allocate nearly Rs.947 crore out of this portion towards repayment of debt. This will repay nearly 75% of the total debt outstanding of Emcure Pharma and will substantially reduce its solvency risk and also improve its interest coverage and debt service ratios post the IPO completion.

3) Currently, promoters Satish Mehta and Sunil Mehta own 41.92% and 6.13% stake in the company respectively. In addition, among the non-promoters, the biggest shareholder is Bain Capital which owns 13.09% stake in Emcure Pharma. Promoter group currently holds over 80% of the capital. Promoters and Bain Capital will take partial exit via OFS.

4) Emcure is the 12ths largest pharma player in India and specializes in HIV anti-viral, gynaecology and blood related therapeutic areas. In HIV antiviral products, it has a dominant 51.5% market share. It has a strong presence across Europe and Canada and Emcure products reach out to more than 70 countries currently. 

5) The product portfolio of Emcure includes orals, injectables and biologics. It also has a mRNA platform through which Emcure is developing a COVID-19 vaccine. It has presence in gynaecology, cardiovascular, vitamins, minerals, nutrients, HIV and in the oncology space. In most of these niche areas, Emcure has a leadership position.

6) For FY21, Emcure reported revenues of Rs.6,092 crore and earned net income of Rs.419 crore implying net profit margins of 6.9%. Between 2019 and 2021, while the pharma industry grew revenues at 5.78%, Emcure saw its sales growing at a compounded annual growth rate (CAGR) of 11.3%, outperforming the industry median by a margin.

7) Emcure employs over 11,000 people in its rolls and runs five R&D facilities since the focus on R&D is a key determinant of success in this industry. Across the world, Emcure has 161 patents in total while there are an additional 98 patent applications pending for final approval from the relevant authorities. The company is 38 years old.

The issue is being lead managed by Axis Capital, BOFA Securities, JM Financials and BOB Caps, who will also act as the book running lead managers (BRLMs) for the issue.

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