Emcure Pharmaceuticals gets Sebi nod for IPO, launch likely in July

Emcure Pharmaceuticals IPO

Maharashtra-based Emcure Pharmaceuticals has received approval from the capital markets regulator Securities and Exchange Board of India (SEBI) to launch its initial public offering. The IPO may be launched in July, according to people familiar with the development.

The IPO comprises a fresh issue of Rs 800 crore worth of equity shares by the company, and an offer-for-sale (OFS) of 1,36,78,839 equity shares by existing shareholders including promoters.

Satish Ramanlal Mehta, and Sunil Rajanikant Mehta are the promoters selling shareholders in the OFS. Namita Vikas Thapar, Pushpa Rajnikant Mehta, Bhavana Satish Mehta, Kamini Sunil Mehta, BC Investments IV, Arunkumar Purshotamlal KhannaI, Berjis Minoo Desai, and Sonali Sanjay Mehta will also be selling shares in the OFS.

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The SEBI has issued observation letter on the Emcure IPO on June 10, as per the processing status of draft offer documents published by the regulator. The issuance of observation letter means the company can go ahead with its IPO plans.

Emcure filed the preliminary papers for its IPO with the regulator in December 2023.

The pharmaceutical firm that competes with Dr Reddy's Labs, Cipla, Alkem Labs, Torrent Pharma, Mankind Pharma, and Abbott India intends to utilise Rs 640 crore out of the net fresh issue proceeds for repaying its debt, and the remaining amount for general corporate purposes.

At the end of September 2023, it had an outstanding borrowing of Rs 2,012.9 crore.

Kotak Mahindra Capital Company, Axis Capital, Jefferies India, and JP Morgan India are the book running lead managers to the public issue.