Emcure Pharmaceuticals raises Rs 583 crore from anchor investors ahead of IPO

Emcure Pharmaceuticals IPO

Pune-based Emcure Pharmaceuticals has attracted significant interest from institutional investors, raising Rs 582.6 crore via an anchor book launched for a day on July 2. This fundraising was the day before the issue opening on July 3, while the last day will be July 5.

Marquee global investors including Abu Dhabi Investment Authority, Goldman Sachs, and Morgan Stanley bought more than Rs 71 crore worth of shares of the company from the anchor book.

The pharmaceutical firm informed exchanges that it has finalised the allocation of 57,79,850 equity shares to anchor investors at Rs 1,008 per equity share.

In addition, several mutual funds houses including SBI, HDFC, ICICI Prudential, Whiteoak Capital, Aditya Birla Sun Life Trustee, Axis, Kotak, Nippon Life India, Mirae, Franklin India, UTI, Canara Robeco and Motilal Oswal also participated in the anchor book.

"Out of the total allocation of 57,79,850 equity shares to anchor investors, 28,15,962 shares (i.e. 48.72 percent of the total allocation to anchor investors) were allocated to 16 domestic mutual funds through a total of 29 schemes," Emcure said in its filing to exchanges.

Among others, HDFC Life Insurance Company, ICICI Prudential Life Insurance Company, SBI Life Insurance Company, Amundi Funds, Neuberger Berman Emerging Markets Equity Fund, The Prudential Assurance Company, Bajaj Allianz Life Insurance Company, and Max Life Insurance Company, too, invested in the pharma firm.

Emcure intends to raise Rs 1,952.03 crore via an initial public offering which is a mix of fresh issuance of shares worth Rs 800 crore, and an offer-for-sale (OFS) of 1.14 crore shares worth Rs 1,152.03 crore by several existing shareholders including promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta.

The price band for the public issue has been fixed at Rs 960-1,008 per share.

The company has reserved 1,08,900 equity shares for its employees who will get these shares at a discount of Rs 90 per share to the final issue price.

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