1 min read.Updated: 19 Aug 2021, 03:20 PM ISTLivemint
Emcure Pharma IPO to comprise of fresh issuance of equity shares worth ₹1,100 crore and an offer of sale of 18,168,356 shares
Emcure Pharmaceuticals Limited, one of the leading Indian pharmaceutical companies engaged in developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas, has filed its Draft Red Hearing Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) to raise funds via initial public offering (IPO).
Sources told Livemint that the offer size could be up to ₹4,500 crore to ₹5,000 crore. The initial public offering (IPO) comprises fresh issuance of equity shares worth ₹1,100 crore and an offer of sale (OFS) of 18,168,356 shares by promoters and existing shareholders, according to the draft red herring prospectus (DRHP).
As a part of the OFS, promoters Satish Mehta and Sunil Mehta will offload 20.30 lakh and 2.5 lakh shares, respectively. Investor BC Investments IV Ltd will divest 99.5 lakh shares. Currently, Satish Mehta and Sunil Mehta hold 41.92 per cent and 6.13% stake, respectively, in the company, while BC Investments owns 13.09%.
The company is considering a pre-IPO placement aggregating up to ₹200 crore. If such placement is completed, the fresh issue size will be reduced. Proceeds of the fresh issue will be used towards the payment of debt and for general corporate purposes.
Axis Capital, JM Financial, BOB Capital Markets, BofA Securities India Limited, Credit Suisse Securities (India) Private Limited have been appointed as merchant bankers to advise the company on the IPO. The equity shares of the company will be listed on the BSE and NSE.
Emcure Pharmaceuticals is engaged in developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas. The company has a presence in 70 markets globally. The Pune-based company is currently developing an RNA vaccine for COVID-19 through its subsidiary Gennova Biopharmaceuticals.
In July, Emcure Pharma said it has strengthened its board with the inclusion of four new independent directors, including former Foreign Secretary Vijay Keshav Gokhale. The others who have joined the company's board are Shailesh Ayyangar, Hitesh Jain and Vidya Yeravdekar. Earlier this year, Berjis Desai had taken over as the chairman of Emcure Board.
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