Emcure Pharmaceuticals Ltd IPO: Review, Valuation, Date & GMP

Emcure Pharmaceuticals Limited IPO-Complete Overview

Emcure Pharmaceuticals Limited was Established in 1981, it is an Indian pharmaceutical enterprise that engages in the development, production, and international distribution of an extensive array of pharmaceutical products spanning multiple major therapeutic domains.

According to MAT September 2023, the company's domestic sales ranking amongst drug manufacturers in India was 13th, while its share of the market in its covered markets during the same time was 4th. Furthermore, as of September 2023, it is the top pharmaceutical company in the fields of HIV antiviral therapy and gynecology.

Sales in India accounted for 50.84% and 53.16% of the company's overall revenue in the six months that ended on September 30, 2023, and the Financial Year 2023, respectively. Between September 2019 and September 2023, the company's domestic sales expanded at a compound annual growth rate (CAGR) of 10.80%, outpacing the pharmaceutical market in India.

Emcure Pharma has five research locations in India and employed 552 scientists as of September 30, 2023. They submitted more than 1,800 documents worldwide, 204 of which were filed in the EU and 133 in Canada. They filed 102 drug master files, had 33 ongoing patent applications, and had 201 awarded patents.

Emcure Pharmaceuticals Limited Director Namita Thapar was also the Shark in SharkTank India Seasons 1,2 and 3 which concluded on March 31, 2024. 

There are thirteen production sites for Emcure Pharmaceuticals in India. These facilities are capable of producing a wide range of pharmaceutical and biopharmaceutical products, such as liquids, injectables, pills, and complicated components including iron, chiral, and cytotoxic compounds.

As of September 30, 2023, more than 5,000 field employees who frequently engaged with healthcare providers supported the company's marketing and distribution network in India.

Dear readers, we are pleased to provide details about the approaching IPO. The company plans to launch its IPO on July 3, 2024.

Let's take a closer look at the IPO's offerings below.

Emcure Pharmaceuticals Limited IPO Overview

Emcure Pharmaceuticals Limited IPO is a MainBoard book-built issue of Rs.1,952.03 crore with a Fresh Issue of 0.79 crore Shares (amounting to Rs.800 crore) and an offer for sale of 1.14 crore Shares (amounting to Rs.1,152.03) out of which 35% is allocated to retail investors, 50% to institutional investors and 15% to non-institutional investors. 

The IPO will be available to investors on July 03, 2024, and conclude on July 05, 2024. The anticipated listing date for the IPO is Wednesday, July 10, 2024, and it will be held on the BSE and NSE. The price band of the share is Rs.960 to Rs.1008.

If You want to apply for this IPO, Click Here to Open a Demat Account.

 

Company Financial

Emcure Pharmaceuticals Limited's revenue climbed by 11.33%, while profit after tax (PAT) decreased by 6.1% during the fiscal years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year that concluded on 31 March 2023.

• The company’s total revenue is over Rs.500 crore.

• The net worth of the company has climbed by 7.55%.

• The company's EBITDA is reduced by 44.82%.

• The total assets of the company rose by 6.77%

• The Liabilities of the company climbed by 3.22%.

(Amount in Crore)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	7,806.16	6,672.53	6,063.47
Total Revenue	6,715.24	6,031.72	5,918.86
PAT	527.58	561.85	702.56
Net worth	2,952.28	2,501.13	1,987.55
Reserve & Surplus	2,722.40	2,293.77	1,791.03
Total Borrowings	2,091.94	2,202.42	2,102.19

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in Crore)

Net Cash flow in multiple Activities	The period of six months ended on,		Financial  Year ended on 31 March 2023
	30 Sep 2023	30 Sep 2022
Net Cash Flow Operating Activities	5,542.78	1891.75	7468.53
Net Cash Flow Investing Activities	1,148.16	2,109.58	4,676.85
Net Cash Flow Financing Activities	4,810.24	1,087.05	1,453.97

 

 

Break-down of revenue from the sale of formulations:

(Amount in Crore)

Formulations Category	Six months ended on Sep 30,		FY ended Mar 31,
	2023	2022	2023	2022
Generic Product	12,286.01	7,902.47	20,114.16	17,652.41
Branded Generics	17,562.51	17,029.51	33,217.63	34,015.82
Patented Products	913.28	1,118.05	2,265.06	2,586.23

 

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Repayment and/or early settlement of all or some of the company's existing debt.

• General corporate work.

 

Peers of Emcure Pharmaceuticals Limited

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Dr. Reddy's Laboratories Limited	5	335.22	17.93
Cipla Ltd.	2	51.05	30.10
Alkem Laboratories Ltd	2	150.19	33.86
Torrent Pharmaceuticals Ltd.	5	48.94	57.74
Mankind Pharma Limited	1	47.75	45.30
Abbott India Ltd.	10	565.28	47.43
J. B. Chemicals & Pharmaceuticals Limited	2	35.66	50.49

 

Evaluation

The price of this IPO is Rs.960 to Rs.1008 for each share.

Evaluation of P/E Ratio

The P/E Ratio of Emcure Pharmaceuticals Limited IPO is not available.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 47.65.

Particulars	P/E Ratio
Highest	58.25
Lowest	20.45
Average	47.65

 

IPO's Strengths

• Ideally positioned to capitalize on a leading role in the home market.

• Vast, various, and quickly expanding product lines in global markets.

• Robust R&D capacities encourage a diverse product portfolio.

• Broad and varied manufacturing capability.

• A board and management team with exceptional qualifications, experience, and entrepreneurship expands its market share in the home market.

• Maintaining investments in manufacturing capabilities and Research & Development to expand and improve its differentiated product portfolio.

 

IPO’s Weaknesses 

• Any issues with production or quality control could harm the company's reputation and could affect the company's finances, operations, and reputation.

• There are operational hazards associated with its manufacturing and R&D operations.  Any halt or delay in its R&D or production processes could harm its company's operations, finances, and overall performance.

• The supply and pricing of its products could be negatively impacted by any disruptions in the availability of raw materials or completed products that it outsources, and this could have a knock-on effect on its cash flows, business, financial situation, and operational outcomes.

 

IPO GMP Today

The Latest GMO of Emcure Pharmaceuticals Limited IPO is Rs.300

 

Emcure Pharmaceuticals Limited IPO timetable (Tentative)

The IPO is scheduled from July 3 to July 5, 2024, with allotment on July 8, refund initiation on July 9, and listing on July 10, 2024.

Events	Date
IPO Opening Date	July 3, 2024
IPO Closing Date	July 5, 2024
IPO Allotment Date	July 8, 2024
Refund initiation	July 9, 2024
IPO Listing Date	July 10, 2024

 

Emcure Pharmaceuticals Limited IPO Details 

The IPO with a face value of Rs.10 per share is set to start on July 3, close on 5 July, and offer a total issue size of 19,365,346 Shares (amounting up to Rs.1,952.03 crore) comprising a fresh issue size of 7,936,507 Shares (amounting up to Rs.800 crore) and offer for sale of 11,428,839 Shares (amounting up to Rs.1,152.03 crore).

IPO Opening & Closing Date	July 3, 2024 to July 5, 2024
Face Value	Rs.10 per Share
Issue Size	19,365,346 Shares of Rs.1,952.03 crore
Offer for Sale	11,428,839 Shares of Rs.1,152.03 crore
Fresh Issue	7,936,507 Shares of Rs.800 crore
Listing at	NSE, BSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

 

Emcure Pharmaceuticals Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 lot (14 shares) amounting to Rs.14112, and 14 lots (196 Shares) amounting to Rs.197568 respectively, while for HNI investors, the minimum lot is 15 (210 Shares) amounting to Rs.211680.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	14 lots
S-HNI (Min)	15 lots
S-HNI (Max)	70 lots
B-HNI (Min)	71 lots

 

Emcure Pharmaceuticals Limited IPO Reservation

QIB Share Portion	50%
Retail Investors Share Portion	35%
NII Shares Portion	15%

 

Promoters and Management of Emcure Pharmaceuticals Limited IPO

• Satish Mehta

• Sunil Mehta

Pre-issue Promoter shareholding	98.90%
Post-issue Promoter shareholding	-

 

 

 

Emcure Pharmaceuticals Limited IPO Lead Managers

• Kotak Mahindra Capital Company Limited 

• Axis Capital Limited 

• J.P. Morgan India Private Limited 

• Jefferies India Private Limited 

 

Dividend Policy

Information on the dividends on equity shares that the company has declared and paid for the last few fiscal years, specifically for the six months that ended on September 30, 2023, is given below in the table.

Particulars	October 1, 2023, until the date of DRHP	Six months concluded on September 30, 2023	FY 2023
Total dividend (crore)	180.85	-	361.70
Dividend per equity Share (Rs.)	1	-	2

. 

Conclusion

The company’s net worth, total assets, and liabilities have increased and EBITDA fell in the last few financial years. To fulfill its objectives, the company is currently conducting an initial public offering (IPO) for the general public.

We believe the information offered in this blog helps you learn about the company's financial performance. So this blog will be very useful to you if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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