(You can now subscribe to our(You can now subscribe to our ETMarkets WhatsApp channelThe shares of Emcure Pharmaceuticals will debut on the stock exchanges on Wednesday.
"The IPO is reasonably priced at 36.1x FY24 P/E on a diluted basis.
We believe 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 Namita Thapar.
The shark tank fame promoter will rake in around Rs 127 through the issue.The company is looking to utilise the fresh proceeds to pare down their long-term debt and bring it to zero.
Meanwhile, profit after tax declined 6% year-on-year to Rs 527 crore from Rs 562 crore a year earlier.
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The shares of Emcure Pharmaceuticals will debut on the stock exchanges on Wednesday. Ahead of the listing, the company's shares are commanding a GMP of Rs 360 in the unlisted market.The grey market premium of the company has been on the continuous rise for the past few days, following a strong response for the initial share sale, which was subscribed nearly 68 times.If we take into account the upper price band of Rs 1008, the stock is expected to fetch robust listing gains of around 36% to investors if the current trends sustain.However, it is important to note that grey market premiums are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly.Most analysts have been bullish on the IPO not just for the listing gains, but also from a long term gains point of view, given the company's leading position in the domestic therapeutic area and also the plans to increase its market share both in India and exports."The IPO is reasonably priced at 36.1x FY24 P/E on a diluted basis. We believe 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 Namita Thapar. The shark tank fame promoter will rake in around Rs 127 through the issue.The company is looking to utilise the fresh proceeds to pare down their 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 gynaecology and is looking to double down on its strengths to fuel its future growth and expand its margins," said Master Capital Service.In FY24, the company's revenue from operations grew 11% year-on-year to Rs 6,658 crore from Rs 5,985 crore in the preceding financial year. Meanwhile, profit after tax declined 6% year-on-year to Rs 527 crore from Rs 562 crore a year earlier.
