Emcure Pharmaceuticals may bring its Rs 5,000 crore Initial Public Offer (IPO) a few days after the budget. The company’s draft paper has already received approval from market regulator SEBI and is now preparing to file its red herring prospectus.
Under the IPO, the company will issue fresh shares worth Rs 1,100 crore, while the remaining Rs 3,900 crore will be brought through offer-for-sale (OFS) by promoters and shareholders. Under the offer-for-sale (OFS), the company’s founder, managing director and CEO Satish Mehta and his son Sunil Mehta will sell their stake. Both hold 41.92 per cent and 6.13 per cent stake in the company, respectively.
Other promoters/shareholders participating in OFS include global private equity firm Bain Capital, which holds 13.09 per cent stake in the Pune-headquartered pharmaceutical company. Apart from this, several other small promoter groups and individuals will also participate in this offer-for-sale, who collectively hold 33.55 per cent stake in the company.
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Emcure Pharmaceuticals is the 12th largest pharmaceutical company in the country. The company will use Rs 947 crore out of the IPO proceeds to pay off the debt on it. As of March 2021, the company had a debt of Rs 1,256.6 crore. Merchant bankers associated with the company’s IPO said that this IPO can be launched in the next month i.e. February, a few days after the budget.
Emcure Pharmaceuticals is the market leader in HIV antivirals, gynecological drugs and blood related therapy segments, with 51.53 per cent, 11.85 per cent and 10.26 per cent market share in these categories, respectively, as per data till March 2021.
Its product portfolio includes oral, injectable and biologics as well as an mRNA platform through which it is developing a COVID-19 vaccine, which has enabled it to reach markets in over 70 countries with a strong presence in Europe and Canada. enabled.
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Amcure Pharmaceuticals’ revenue stood at Rs 6,091.8 crore in FY21, Rs 5,130.8 crore in FY22 and Rs 4,815.6 crore in FY2119. At the same time, its net profit during these years stood at Rs 418.6 crore, Rs 100.6 crore and Rs 202.9 crore respectively.
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