Emcure Pharmaceuticals is coming up with an IPO. The offer consists of a fresh issue of shares worth INR 800 crores and an offer to sell 1.36 crores of existing equity shares. The company will use the funds raised for repayment, prepayment of borrowings, and general corporate purposes.
Emcure Pharmaceuticals IPO – Important Details
| Emcure Pharmaceuticals IPO Date | NA |
| Emcure Pharmaceuticals IPO Listing Date | NA |
| Emcure Pharmaceuticals IPO Price | NA |
| Emcure Pharmaceuticals IPO Lot Size | NA |
| Emcure Pharmaceuticals IPO Total Issue Size | NA |
| Emcure Pharmaceuticals IPO Basis of Allotment | NA |
| Emcure Pharmaceuticals IPO Initiation of Refunds | NA |
| Emcure Pharmaceuticals IPO Credit of Shares to Demat | NA |
| Emcure Pharmaceuticals IPO Issue Type | Book Built Issue IPO |
| Emcure Pharmaceuticals IPO Listing At | BSE, NSE |
Emcure IPO – Company Profile
Emcure Pharmaceuticals, a prominent Indian pharmaceutical company, specializes in research, development, and global marketing of a diverse product range. Ranked 13th in India and 4th globally by market share, they lead in gynecology and HIV antivirals domestically, guided by experienced promoters and a dedicated management team.
The company extends its differentiated product portfolio to 70+ countries through international distribution capabilities and strategic alliances. The diversified product range and global presence create a resilient business model, fostering organic growth, brand expansion, acquisitions, and in-licensing arrangements.
Emcure Pharmaceuticals boasts 13 cutting-edge manufacturing facilities in India, enabling the production of diverse pharmaceutical and biopharmaceutical products, including oral solids, injectables, and biotherapeutics. Vertical integration ensures cost-effective manufacturing, quality control, and safeguarding intellectual property for specialty products.
Emcure IPO- Fundamental Analysis
Emcure Pharmaceuticals’ IPO financials showcase commendable revenue growth and profitability. With fluctuating Return on Net Worth and evolving financial ratios, prudent investors should conduct due diligence before considering investment.
Revenue Growth:
Emcure Pharmaceuticals demonstrates consistent revenue growth, increasing from ₹50,334.74 million in 2021 to ₹59,858.11 million in 2023, indicating a positive sales trajectory.
Profitability:
Despite a slight decrease in Profit and Loss After Tax from ₹7,025.56 million in 2022 to ₹5,618.45 million in 2023, the company maintains a profitable stance.
Return on Net Worth (RoNW):
RoNW fluctuates, rising from 17.25% in 2021 to 33.32% in 2022 but declines to 21.27% in 2023. This indicates variable efficiency in utilizing equity for returns.
Net Asset Value (NAV) and Equity:
While the NAV per Equity Share fluctuates, reaching ₹138.30 in 2023, the equity increases from ₹23,680.14 million in 2021 to ₹26,496.60 million in 2023.
Earnings per Share (EPS):
Diluted EPS exhibits growth, rising from ₹21.68 in 2021 to ₹36.62 in 2022, then moderating to ₹29.42 in 2023.
Financial Stability:
Total Assets witness a fluctuating trend, from ₹68,073.98 million in 2021 to ₹60,634.69 million in 2022 and then increasing to ₹66,725.31 million in 2023. Total Liabilities also fluctuate, reaching ₹40,228.71 million in 2023.
Financial Ratios:
The Current Ratio improves from 1.09 in 2021 to 1.27 in 2023, indicating enhanced short-term liquidity. The Interest Coverage Ratio remains healthy, with 5.74
Emcure Pharmaceuticals Ltd IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 50,334.74 | 58,553.87 | 59,858.11 |
| Equity (₹ in Million) | 23,680.14 | 21,141.42 | 26,496.60 |
| Expenses (₹ in Million) | 42,221.28 | 49,463.12 | 52,783.55 |
| Profit and Loss After Tax (₹ in Million) | 6,072.52 | 7,025.56 | 5,618.45 |
| RoNW (%) | 17.25 | 33.32 | 21.27 |
| NAV per Equity Share (₹) | 125.68 | 109.90 | 138.30 |
| Diluted EPS only (₹) | 21.68 | 36.62 | 29.42 |
| Total Assets (in million) | 68,073.98 | 60,634.69 | 66,725.31 |
| Total Liabilities (in million) | 44,393.84 | 39,493.27 | 40,228.71 |
| Debt Equity Ratio | NA | NA | NA |
| Current Ratio | 1.09 | 1.15 | 1.27 |
| Interest Coverage Ratio | 6.40 times | 7.92 times | 5.74 times |
Emcure IPO Peer Comparison
Emcure Pharmaceuticals, with robust revenue at ₹59,858.11 million, showcases competitive financials. Among peers, Abbott India stands out with high EPS and RoNW, while Dr. Reddy’s Laboratories presents strong P/E and NAV, providing investors diverse options for consideration.
| Company | Revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| EmcurePharmaceuticalsLimited | 59,858.11 | 10 | NA | 29.42 | 29.42 | 21.27 | 138.30 |
| Dr. Reddy’sLaboratories Limited | 246,697.00 | 5 | 20.45 | 271.47 | 270.90 | 19.36 | 1,398.33 |
| Cipla Limited | 227,531.20 | 2 | 34.55 | 34.72 | 34.69 | 11.97 | 290.01 |
| Alkem LaboratoriesLimited | 115,992.60 | 2 | 58.25 | 82.31 | 82.31 | 10.88 | 756.52 |
| TorrentPharmaceuticalsLimited | 96,201.50 | 5 | 55.66 | 36.79 | 36.79 | 20.09 | 183.13 |
| Mankind Pharma Limited | 87,494.33 | 1 | 57.80 | 32.00 | 32.00 | 17.24 | 185.61 |
| Abbott India Limited | 53,487.30 | 10 | 51.10 | 446.78 | 446.78 | 29.78 | 1,500.54 |
| J. B. Chemicals & Pharmaceuticals Limited | 31,492.83 | 2 | 55.72 | 26.50 | 26.17 | 16.52 | 320.55 |
Emcure Pharmaceuticals Ltd IPO Objective
The company intends to allocate INR 640 crores from Net Proceeds for loan repayment, considering maturity, costs, and legal compliance. Additionally, funds will be utilized for diverse general corporate purposes, encompassing growth, marketing, capital expenditure, subsidiary investments, and addressing contingencies.
- Repayment and prepayment of all or a portion of certain outstanding borrowings availed by the company: The company plans to use INR 640 crores from the Net Proceeds to prepay certain loans, subject to varying due amounts and terms. Factors influencing the choice of repayments or prepayments in borrowing arrangements encompass maturity, costs, conditions, penalties, legal compliance, and commercial considerations.
- General Corporate Purposes: The company plans to use the net proceeds for general corporate purposes, including funding organic and inorganic growth, strengthening marketing and brand building, capital expenditure for operational maintenance, investing in subsidiaries, and addressing ongoing corporate contingencies.
Emcure IPO Risks and Challenges
Emcure Pharmaceuticals faces regulatory challenges with past USFDA warnings, supply chain risks, and legal proceedings. Compliance issues, approval delays, and reliance on distributors threaten business operations, financial stability, and reputation, requiring ongoing diligence.
- The pharmaceutical company adheres to regulations from various global agencies. While past inspections yielded no critical remarks, a 2019 USFDA warning letter prompted corrective actions. Recalls occurred due to contamination and packaging issues. Ongoing compliance is crucial to prevent regulatory actions and product liability claims.
- Emcure Pharmaceuticals operates in a highly regulated industry, requiring various permits and approvals. Failure to obtain or maintain these approvals, compliance issues, or regulation changes could adversely impact business operations, financial conditions, and results. Delays in product approvals and reliance on local distributors pose additional risks.
- Supply chain disruptions or price increases in outsourced raw materials and finished products can negatively impact product supply, pricing, and overall business for Emcure Pharmaceuticals, leading to adverse effects on cash flows, financial conditions, and operational results.
- Emcure Pharmaceuticals faces legal proceedings involving the company, directors, promoters, subsidiaries, and Heritage Group. Unsuccessful defense may adversely impact business prospects, financial condition, ongoing operations, and reputation, posing potential risks to the company’s overall standing.
Emcure IPO – Industry & Market Potential
The global pharmaceutical industry, traditionally concentrated in high-income regions, has seen significant growth in middle-income countries like India and China. These “Pharmerging” markets are crucial for multinational companies, with notable increases in pharmaceutical exports, though high-income regions lead in research and development expenditures.
As the global population approaches 8 billion in 2023, per capita medicine usage rises, driven by emerging markets like China, India, Brazil, and Indonesia. Factors include improved healthcare infrastructure, increased income, and expanded insurance coverage, narrowing the gap with developed markets. Continued investment will influence future growth.
The Indian pharmaceutical industry’s key growth drivers include the rising prevalence of non-communicable diseases, expected 10-11% CAGR in the chronic segment from FY2023 to FY2028, population growth, and government initiatives like the PLI scheme to encourage domestic ingredient manufacturing.
Emcure Pharmaceuticals IPO – Type of Offer
Emcure Pharmaceuticals plans a fresh issue of shares, seeking INR 800 crores to augment the capital needs of the company. Additionally, the company proposes an offer for sale, intending to sell 1.36 crore existing shares.
1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 800 crores. The company intends to utilize the proceeds from the fresh issue for repayment, prepayment of borrowings, and general corporate purposes for company.
2. Offer for sale: Emcure Pharmaceuticals is offering to sell 1.36 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in million) |
| Satish Ramanlal Mehta | 1,730,000 |
| 19.37Sunil Rajanikant Mehta | 40,000 |
Emcure Pharmaceuticals IPO Offer Size
Emcure Pharmaceuticals plans to launch an Initial Public Offering (IPO). This comprises a new issuance of shares totaling INR 800 crores and the sale of 1.36 crores of existing equity shares. The funds generated will be used for repayment, prepayment of borrowings, and general corporate purposes for the company.
Emcure Pharmaceuticals IPO Allotment Structure
Emcure Pharmaceutical’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations. A portion of the issue is also set aside for the eligible employees.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Eligible Employees: A portion of the issue is reserved for eligible employees.
How to apply for an Emcure Pharmaceuticals IPO?
To apply for the Emcure Pharmaceuticals IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Emcure Pharmaceuticals IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for the Emcure Pharmaceuticals Limited’s IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: Post the allotment process; you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Emcure Pharmaceuticals IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Emcure Pharmaceuticals IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Emcure Pharmaceuticals IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Emcure Pharmaceuticals IPO:
Registrar’s Website: Visit the website of Link In time India Private Limited, the registrar of the Emcure Pharmaceuticals IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Emcure Pharmaceuticals IPO Offer Registrar
The registrar for the Emcure Pharmaceuticals IPO is Link In time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In time India Private Limited
C-101, 1stFloor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai 400 083
Maharashtra, India
Tel: +91 810811 4949
E-mail: [email protected]
Website: www.linkintime.co.in
Emcure Pharmaceuticals IPO FAQs
What is the allotment date of the Emcure Pharmaceuticals IPO?
The allotment date of Emcure Pharmaceuticals IPO has not yet been announced.
What is the price band of the Emcure Pharmaceuticals IPO?
The price band of the Emcure Pharmaceuticals IPO shares issued by the company has not yet been announced.
What is the size of the Emcure Pharmaceuticals IPO?
Emcure Pharmaceutical plans to launch an Initial Public Offering (IPO). This comprises a new share issuance of INR 800 crores and the sale of 1.36 crores of existing equity shares. The funds generated will be for repayment, prepayment of borrowings, and general corporate purposes for the company.
What is the listing date of the Emcure Pharmaceuticals IPO?
The listing date of the Emcure Pharmaceuticals IPO issue has not yet been announced.
