Emcure Pharma shares debut with 31% premium over issue price

The company raised Rs 582 crore from anchor investors before the issue launch. Marquee investors who participated in the anchor round include HDFC MF, ICICI Pru MF, SBI MF, Abu Dhabi Investment Authority, Goldman Sachs Asset Management, Nomura, and , among others.

Most analysts were bullish on the IPO not just for the potential listing gains but also for long-term growth prospects. The company holds a leading position in the domestic therapeutic sector and has plans to expand its market share both in India and in exports.

"The IPO is reasonably priced at 36.1x FY24 P/E on a diluted basis. We believe the commencement of new capacities and potential debt reduction post-IPO would aid recovery in profitability," said Motilal Oswal.

The public offer has been buzzing in the market ever since the launch, thanks to its executive director . The Shark Tank fame promoter will rake in around Rs 127 through the issue.

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The company is looking to utilise the fresh proceeds to pare down long-term debt and bring it to zero.

"Emcure has gone from strength to strength historically with a focus on major therapeutic areas such as gynecology and is looking to double down on its strengths to fuel its future growth and expand its margins," said Master Capital Service.

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

This research and development-driven company offers a differentiated product portfolio that includes orals, injectables, and biotherapeutics. Emcure operates in more than 70 countries, with a significant presence in India, Europe, and Canada.

The global pharmaceutical market is expected to sustain growth at a compound annual growth rate of approximately 5.0% to 5.5% between the calendar years 2023 and 2028, to reach approximately $1,900 billion (approximately Rs 157 lakh crore) to $1,950 billion (about Rs 161 trillion) in the calendar year 2028.

In FY24, the company's revenue from operations grew 11% year-on-year (YoY) to Rs 6,658 crore from Rs 5,985 crore in the preceding financial year. Meanwhile, profit after tax declined 6% YoY to Rs 527 crore from Rs 562 crore a year earlier.

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