Emcure Pharmaceuticals Limited IPO (Emcure Pharma IPO) Review –
Emcure Pharmaceuticals Limited IPO (Emcure Pharma IPO) is set to open from 3rd July 2024 to 5th July 2024. This article will analyze the financials , strengths and weaknesses of the Emcure Pharmaceuticals Limited IPO (Emcure Pharma IPO) . Keep scrolling below to read more!
Emcure Pharmaceuticals Limited IPO (Emcure Pharma IPO) Overview –
Established in 1981, Emcure Pharmaceuticals Limited, is an Indian pharmaceutical company which develops, manufactures, and globally markets a wide range of pharmaceutical products across several major therapeutic areas.
The company has been ranked as
- 13th in domestic sales among pharmaceutical companies in India for MAT Financial Year 2024.
- 4th in market share in its covered markets for MAT Financial Year 2024.
- Additionally, it is the leading pharmaceutical company in gynecology and HIV antiviral therapeutic areas for the MAT Financial Year 2024.
They have significant presence in most of the major therapeutic areas, including gynecology, cardiovascular, vitamins, minerals and nutrients, HIV antivirals, blood-related and oncology/anti-neoplastics.
As of September 30, 2023, company employed 552 scientists and operated five research facilities in India. They filed over 1,800 documents globally, including 204 in the EU and 133 in Canada.
Company has 13 manufacturing facilities in India. These facilities can produce various pharmaceutical and biopharmaceutical products, including pills, liquids, injectables, and complex ingredients such as chiral molecules, iron molecules, and cytotoxic substances.
As of September 30, 2023, the company’s marketing and distribution network in India was supported by over 5,000 field personnel who regularly interacted with healthcare providers. The distribution network included over 5,000 stockists, served by 37 carry-and-forward agents.
Emcure Pharmaceuticals Limited IPO (Emcure Pharma IPO) Synopsis-
Emcure Pharmaceuticals Limited IPO (Emcure Pharma IPO) is set to be open from 3rd July 2024 to 5th July 2024, offering fresh issue of 0.79 crore shares aggregating to Rs 800.00 crores and offer for sale of 1.14crore shares aggregating to Rs 1152.03 crores. This NSE,BSE IPO follows a Book Built Issue IPO.
The total issue size of this IPO amounts to Rs. 1952.03 Crores. The company has allocated shares 35% to retail investors, 50% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 3rd July 2024 |
| Closing Date | 5th July 2024 |
| Lot Size | 14 Shares |
| Face Value | Rs. 10 |
| IPO Size | Rs. 1952.03 Cr |
| Fresh Issue | Rs. 800 Cr |
| IPO Price Range | Rs. 960 – 1008 |
| Min. Investment | Rs. 14,112 |
| Offer for Sale (OFS) | Rs. 1152.03 Cr |
| Employee Discount | Rs 90 per share |
| Basis of Allotment | 8th July 2024 |
| Refunds | 9th July 2024 |
| Listing Date | 10th July 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Emcure Pharmaceuticals Limited IPO (Emcure Pharma IPO) Book Running Lead Managers –
- Kotak Mahindra Capital Company Limited
- Axis Capital Limited
- J.P. Morgan India Private Limited
- Jefferies India Private Limited
Emcure Pharmaceuticals Limited IPO (Emcure Pharma IPO) Registrar to the offer –
The registrar for the Emcure Pharmaceuticals Limited IPO (Emcure Pharma IPO) is Link Intime India Private limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company proposes to utilize the Net Proceeds from the IPO towards the achievement of the following objects:
- Prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the Company and
- General corporate purposes.
Key Performance Indicator –
The market capitalization of Emcure Pharmaceuticals Limited is Rs 19029.89 Cr.
KPI as of December 31, 2023.
| Earning Per Share (EPS): Post IPO | ₹27.95 per Equity Share |
| Price/Earning P/E Ratio: Post IPO | 36.07 |
| Return on Net Worth (RoNW): | 16.87% |
| PAT Margin(%) | N/A |
| Net Asset Value (NAV): | ₹163.22 per Equity Share |
Financial Status –
Emcure Pharmaceuticals Limited’s revenue increased by 11.33% and profit after tax (PAT) dropped by -6.1% between the financial year ending with March 31, 2024 and March 31, 2023.
| Particulars(in Rs. Crores) | FY 23 | FY 22 | FY 21 |
|---|---|---|---|
| Revenue From Operations | 6715.24 | 6031.72 | 5918.86 |
| EBIDTA | N/A | N/A | N/A |
| PAT | 527.58 | 561.85 | 702.56 |
| Total Assets | 7806.16 | 6672.53 | 6063.47 |
| Total Borrowings | 2091.94 | 2202.42 | 2102.19 |
Evaluation of P/E Ratio
The P/E Ratio of Allied Blenders and Distillers Limited IPO (Allied Blenders IPO) is 36.07.
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is 41.4.
Peers of Emcure Pharmaceuticals Limited –
Emcure Pharmaceuticals Limited peer comparison with similar listed entities. (As on March 31, 2023)
| Company Name | EPS (Basic) | NAV (per share) (Rs) | P/E | RoNW (%) | P/BV | Financial statements |
|---|---|---|---|---|---|---|
| Emcure Pharmaceuticals Limited | 27.54 | 163.22 | 21.27 | Consolidated | ||
| Dr. Reddy’s Laboratories Limited | 335.22 | 1693.75 | 17.93 | 19.74 | 3.54 | Consolidated |
| Cipla Ltd. | 51.05 | 330.78 | 30.10 | 15.43 | 4.64 | Consolidated |
| Alkem Laboratories Ltd | 150.19 | 862.46 | 33.86 | 17.41 | 5.90 | Consolidated |
| Torrent Pharmaceuticals Ltd. | 48.94 | 202.57 | 57.74 | 24.15 | 13.95 | Consolidated |
| Mankind Pharma Limited | 47.75 | 233.73 | 45.30 | 20.43 | 9.24 | Consolidated |
| Abbott India Ltd. | 565.28 | 1740.71 | 47.43 | 32.48 | 15.40 | Consolidated |
| J. B. Chemicals & Pharmaceuticals Limited | 35.66 | 188.37 | 50.49 | 18.90 | 9.34 | Consolidated |
Emcure Pharmaceuticals Limited IPO (Emcure Pharma IPO) Strengths –
- Emcure’s strong focus on the Indian market, accounting for over half of its revenue, has propelled it to a top position in key therapeutic areas, showcasing significant growth potential and market dominance.
- With a presence in over 70 countries, particularly in Europe and Canada, Emcure’s diversified product portfolio offers ample growth opportunities internationally, contributing significantly to its overall revenue.
- Emcure’s robust in-house R&D expertise enables the development of a differentiated product range, including complex molecules, novel drug delivery systems, and biotherapeutics, providing the company with a competitive advantage.
Emcure Pharmaceuticals Limited IPO (Emcure Pharma IPO) Weakness –
- Emcure Pharmaceuticals Limited is subjected to comply with the regulatory requirements and quality standards. Failure to comply may lead to regulatory actions which could significantly impact the company’s reputation and financial stability.
- Emcure faces operational risks related to manufacturing and research activities. Any delay, disruptions, shutdowns, or delays in operations due to equipment failures, accidents, or regulatory disputes could impact production, fulfillment of contractual commitments, and overall business performance.
- There are outstanding legal proceedings involving the company , promoters , directors and group companies.
- Company is exposed to counterparty risk and may face delay in receiving payments or non receipt of payments.
- Company may face pricing pressure from customers which in turn could affect the margins and profitability.
Emcure Pharmaceuticals Limited IPO (Emcure Pharma IPO) GMP Today –
Emcure Pharmaceuticals Limited IPO last GMP is ₹275, last updated Jul 1st 2024. With the price band of 1008.00, Allied Blenders and Distillers IPO’s estimated listing price is ₹1283(cap price + GMP). The expected percentage gain/loss per share is 27.28%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
