Amcure Pharma IPO: Emcure Pharmaceuticals Ltd’s initial public offering, which opened for public subscription on July 3, was oversubscribed 1.31 times on the first day. As of 5:30 pm on Thursday, the IPO received 5.00 times subscription for 6,84,54,596 shares against 1,37,03,538 shares on offer.

The price band of the IPO has been fixed at Rs 960 to Rs 1,008 per share.

The quota of non-institutional investors was subscribed 13.97 times, while the portion of retail individual investors (RIIs) was subscribed 3.53 times. The Qualified Institutional Buyers (QIBs) category has received 97 percent subscription so far.

A day ahead of its IPO, Emcure Pharmaceuticals raised Rs 583 crore from anchor investors on Tuesday.

Shark Tank judge Nimat Thapar, executive director of Emcure Pharmaceuticals, is offloading shares worth Rs 128 crore through the IPO.

The IPO allotment will take place on July 8, while its shares are likely to be listed on BSE and NSE on July 10. Bidding for anchor investors will be open for one day on July 2.

Investors need to apply for a minimum of 14 equity shares and multiples thereof. Therefore, the minimum investment for retail investors will be Rs 14,112 (14 (lot size) x Rs 1,008 (upper price band)).

Emcure Pharma IPO GMP Today

According to market observers, the unlisted shares of Emcure Pharma Ltd are trading Rs 345 higher than its issue price in the gray market. A gray market premium or GMP of Rs 345 means that the gray market is expecting a listing increase of 34.23 percent from the public issue. GMP is based on market sentiment and changes.

The ‘grey market premium’ indicates the willingness of investors to pay more than the issue price.

Amcure Pharma IPO: Analysts’ Recommendations

Analysts have given ‘Subscribe’ recommendations to Amcure Pharma IPO with a long-term horizon.

A brokerage firm Anand Rathi “Emcure Pharmaceuticals has a strong focus on the women’s healthcare market, and it is the leading gynecological treatment in IPM, with a market share of 13.53% in terms of domestic sales for MAT FY24,” it said in its note. is a market leader in the sector. The company’s market share in IPM was 1.70 times the market share of the next largest competitor in this therapeutic sector.”

On the valuation front, the brokerage said that at the upper band, Amcure is well-valued at a post-issue P/E of 36x equity shares based on FY24 earnings. It added that the company has room for business improvement due to industry tailwinds and business scalability.

“We recommend ‘Subscribe – Long’ rating to the IPO,” said Anand Rathi.

Another broker Swastika In its note, “Mcure Pharmaceuticals is a prominent player in the domestic and international pharmaceutical markets. The company boasts of a large, diverse, and rapidly growing product portfolio, with proven branding capabilities and Includes strong R&D infrastructure.”

Emcure has shown consistent revenue growth, although recent profit has seen a slight decline due to interest expense and depreciation, Swastika said.

Risks: However, some important risks need to be carefully considered, Swastika said. The pharmaceutical industry is highly regulated, and Emcure faces potential disruptions in its raw material supply chain. Additionally, the company relies on third parties for product marketing and distribution, the brokerage said.

“Given the company’s strength, growth momentum, and potential for debt reduction post-IPO, we consider a P/E valuation of 36.6x reasonable. We recommend this IPO with a long-term view.” Apply,” Swastika said in the note.

Another broker Reliance Securities “Improving life expectancy, increasing incidence of chronic diseases, and improving awareness will keep domestic tailwinds strong, focusing on market growth,” Amcure Pharma said in its note on the IPO. Deepening the international presence with the approach will improve the financial metrics. Therefore, we recommend subscribing to this issue.”

Amcure Pharma IPO More Details

The IPO includes a fresh issue of equity shares worth Rs 800 crore by the promoters and existing shareholders and an offer for sale (OFS) of 1.14 crore equity shares worth Rs 1,152 crore. This brings the total public volume to Rs 1,952 crore.

Among those selling stakes in OFS are promoter Satish Mehta and investor BC Investments IV Ltd, an affiliate of US-based private equity major Bain Capital. Currently, Satish Mehta holds 41.85 percent stake in the company and BC Investments holds 13.07 percent stake.

The proceeds of the fresh issue will be used for debt repayment and general corporate purposes.

The share of employees in the IPO is reserved up to 108,900 equity shares. In addition, half of the issue size has been allocated to qualified institutional investors (QIBs), 35 per cent to retail investors and the remaining 15 per cent to non-institutional investors.

Further, investors can bid for a minimum of 14 shares and in multiples of 14 shares thereafter.

Emcure Pharmaceuticals, a Pune-based firm, is engaged in the development, manufacturing and global marketing of a wide range of pharmaceutical products across several major therapeutic areas.

Kotak Mahindra Capital Company, Jefferies India, Axis Capital, and JP Morgan India are the lead book-running managers for the issue. The company’s equity shares are expected to be listed on BSE and NSE on July 10.

Earlier this month, the company got Sebi’s approval to start the initial share sale.

Between the fiscal year ending March 31, 2024 and March 31, 2023, Emcure Pharmaceuticals Ltd.’s revenue grew by 11.33% and profit after tax (PAT) declined by 6.1%.