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- By Aditya Pratap Singh
- Wed, 03 Jul 2024 06:20 PM (IST)
- Source:JND
Emcure Pharmaceuticals Ltd's initial public offering (IPO) was fully subscribed on Day 1 of its bidding. The initial share sale of Bain Capital-backed Pune-based Pharma firm got 1.32 times subscription on the first day i.e. on Wednesday, boosted by encouraging participation from institutional investors. According to NSE data, the initial share sale received bids for 1,80,25,840 shares against 1,37,03,538 shares on offer.
The non-institutional investors received a subscription rate of 2.70 times, while the category of individual investors (RIIs) received 1.39 times. The Qualified Institutional Buyers (QIBs) portion was subscribed by 7 percent. The issue, with a price range of INR 960 to INR 1,008 per share, will be open for public subscription till July 5.
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The IPO consists of a new issue of equity shares worth Rs 800 crore and an offer for sale (OFS) of Rs 1.14 lakh equity shares worth Rs 1,152 crore, at the upper end of the price range, by the promoters and existing shareholders. This raises the overall turnover to Rs 1,952 crore. Mcure Pharma promoter Satish Mehta and investor BC Investments IV Ltd, a Bain Capital subsidiary, are among those offloading shares through OFS.
Satish Mehta currently owns a 41.85 percent stake in the company and BC Investments owns a 13.07 percent stake. The proceeds from the initial share sales will be used to repay debt and a chunk of it will be used for general corporate purposes. Emcure Pharmaceuticals on Tuesday stated that it had raised Rs 583 crore from anchor investors.
Pune-based Emcure Pharmaceuticals is involved in the development, manufacturing, and marketing of a wide range of pharmaceutical goods globally across several key therapeutic areas. Kotak Mahindra Capital, Jefferies India, Axis Capital, and JP Morgan India are the lead book-running managers for this issue. The company's shares will be listed on the BSE and NSE.