Emcure Pharmaceuticals receives Sebi approval to go ahead with IPO plans

Currently, Satish Mehta and Sunil Mehta hold 41.92 percent and 6.13 percent stake in the company respectively, while BC Investments own 13.09 percent stake.

Emcure Pharmaceuticals, which filed preliminary IPO documents with Sebi in August, obtained observations letter on December 8, an update available with the markets watchdog showed on Monday. In Sebi parlance, issuance of observations letter implies its go-ahead for the IPO.

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The company considers a pre-IPO placement aggregating up to Rs 200 crore. If such placement is completed, the fresh issue size will be reduced.

Proceeds of the fresh issue will be used towards payment of debt and for general corporate purposes.

Emcure Pharmaceuticals is engaged in developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas. The company has presence in 70 markets globally. The Pune-based company is currently developing RNA vaccine for COVID-19 through its subsidiary, Gennova Biopharmaceuticals.

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Axis Capital, JM Financial, BOB Capital Markets, BofA Securities India, and Credit Suisse Securities (India) are the book running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.