Emcure Pharma To Raise Up To $500 Million Via IPO Next Year: Report

Bain Capital-backed Emcure Pharmaceuticals is planning to raise between $400-$500 million from the initial public offering (IPO), which is planned for next year, two sources were quoted as saying by Reuters.

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According to media reports, the pharma company had shelved its IPO plans in early 2022 due to the Russia-Ukraine war, which roiled up the global market. It had planned to list and raise up to $672 million in early 2022, and had even received regulatory approval to go ahead.

The pharma company has hired investment banks JP Morgan, Jefferies and Kotak for the IPO, and is targeting a valuation of about $3 billion, as per Reuters report. The first sources revealed that Bain Capital, which holds over 13% in the pharma company, is planning to sell a part of its stake.

Emcure, along with other companies, aims to leverage the rising demand for medicines and the increasing health consciousness among the population in the world's most populous country. India's pharmaceutical market is projected to grow from its current $50 billion to a substantial $130 billion by 2030, driving a surge in deal-making within the sector.

The company now plans to file draft IPO papers with the regulator by the end of the year and list next year, sources said.

During the fiscal year ending in March 2022, Emcure's revenue from its operations increased by 16%, reaching $698 million, as reported by the rating agency CareEdge Ratings. The agency also noted that approximately 45-55% of Emcure's total revenues are generated within India.

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India’s pharmaceutical industry is witnessing a surge in deal-making, marked by historically high valuations. Torrent Pharma is actively engaged in discussions to potentially acquire its larger counterpart, Cipla, in a deal estimated at around $7 billion, which could become India's largest-ever pharmaceutical transaction. Additionally, Glenmark recently finalized the sale of its life sciences division to Nirma, a detergent manufacturer, for a notable $680 million.