Emcure Pharma IPO: Here’s what GMP signals ahead of opening for subscription

The Pune-based Emcure Pharma is all set to launch its initial public offerings (IPO) next week. The IPO will open for subscription on July 3 and will close on July 5.

The shares of Emcure Pharma IPO is trading at a premium of ₹255 in the grey market premium (GMP) on Saturday, June 29, just days before the issue opens for subscription, according to investorgain.com.

The grey market is an unofficial platform where shares begin trading before their IPO allotment and continue until the listing day. Many investors monitor the Grey Market Premium (GMP) to gauge the anticipated listing price.

This means that the estimated listing price of Emcure Pharma IPO is ₹1,263, which is 25.3 per cent of the IPO price band of ₹1,008 per share. The lowest GMP of the upcoming IPO is ₹0, while the highest GMP is ₹271.

The company aims to raise over a total of ₹1,951.04 crore through the issue, at the upper price band of ₹1,008. The IPO comprises a fresh share sale worth ₹800 crore and an offer-for-sale (OFS) of 1.14 crore equity shares by its promoters and existing shareholders.

Promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta are the selling shareholders in the OFS.

Nearly 50 per cent of the public offer has been allocated to qualified institutional bidders (QIBs), 15 per cent of the net offer is designated for non-institutional investors, and the remaining 35 per cent is set aside for retail investors.

The proceeds from the fresh issue will be utilized for the repayment and/or prepayment of certain outstanding borrowings by the company, as well as for general corporate purposes. Additionally, the proceeds from the OFS will go to the selling shareholders.

Kotak Mahindra Capital Company, Axis Capital, JP Morgan India, and Jefferies India are the book-running lead managers for the issue, with Link Intime India serving as the registrar.