₹₹₹Shares of Emcure Pharmaceuticals Ltd. debuted on the market with a strong 32% premium over the IPO issue price of1,008.
In fact, the debut price on July 10 (Wednesday) was similar to analysts' expectations as well the grey market investors quoted.The stock started the trade at1,325.05, reflecting a jump of 31.45% on the NSE.
The quota reserved for non-institutional investors was subscribed 48.32 times, while the category set aside for retail investors was booked 7.21 times.
"Shivani Nyati of Swastika Investmart said that Emcure boasts a strong foundation for its anticipated success.
Thapar holds 63.39 lakh shares of Emcure Pharma.
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Shares of Emcure Pharmaceuticals Ltd. debuted on the market with a strong 32% premium over the IPO issue price of1,008. In fact, the debut price on July 10 (Wednesday) was similar to analysts' expectations as well the grey market investors quoted.The stock started the trade at1,325.05, reflecting a jump of 31.45% on the NSE. On the BSE, it listed at1,325.05.Last heard, shares of Emcure Pharmaceuticals were commanding a premium of ₹365 in the grey market, suggesting a listing pop of 36% for the investors.Emcure Pharma had received a strong response from the investors during the three-day bidding process. The issue was overall subscribed a stellar 67.87 times at close.The portion set aside for qualified institutional bidders (QIBs) was booked a whopping 195.83 times. The quota reserved for non-institutional investors was subscribed 48.32 times, while the category set aside for retail investors was booked 7.21 times. The employees portion saw bidding for 8.81 times.Prashanth Tapse of Mehta Equities believed the investor demand has come considering reasonable valuations and an opportunity to invest in the leading pharmaceutical company in India in the gynecology and HIV antivirals therapeutic areas.Considering all the parameters subscription demand and market sentiments, it is indicating a healthy room for listing gain in the range of 25-30%, as against the issue price of ₹1,008 per share, Tapse said.For short term investment perspective, the analyst recommended allotted investors to book profits on listing day, while long term investors can continue to 'Hold' the stock.For long term investors, he said, "Given its strategic focus on high-growth therapeutic areas, innovative product portfolio, successful global expansions coupled and solid R&D foundation, Emcure is well-positioned for sustained growth for long term as well."Shivani Nyati of Swastika Investmart said that Emcure boasts a strong foundation for its anticipated success. The company possesses a diverse and rapidly growing product portfolio catering to both domestic and international markets. Their proven brand-building capabilities and robust R&D infrastructure further solidify their market position.However, some potential risks require investor awareness. The pharmaceutical industry faces strict regulations, and Emcure is susceptible to disruptions in its raw material supply chain, Nyati highlighted.Despite these considerations, the analyst said that the overwhelming investor demand and Emcure's strong fundamentals point toward a positive listing.The company had already raised around ₹583 crore through its anchor book on July 2. Marquee investors like Abu Dhabi Investment Authority, Goldman Sachs, and Morgan Stanley have participated in the anchor book.The initial public offering (IPO) of Emcure Pharmaceuticals was open for subscription from July 3 to July 5. The company sold its shares in the fixed price band of ₹960 to ₹1,008 apiece, with 14 equity shares in a lot.Considering the upper end of the price band, the company is looking to raise a total of ₹1,952 crore through the IPO.The IPO included a fresh share sale of ₹800 crore and an offer-for-sale (OFS) of 1.14 crore equity shares by its promoters and existing shareholders.Investors who offloaded their stakes under the OFS included promoters Namita Thapar, Satish Ramanlal Mehta, Sunil Rajanikant Mehta, and Samit Satish Mehta, as well as BC Investments IV Ltd, an affiliate of the US-based private equity major Bain Capital.Shark Tank fame Namita Thapar is expected to make around ₹127 crore through the issue. Thapar holds 63.39 lakh shares of Emcure Pharma. She had acquired shares in the company at a weighted average price of ₹3.44 apiece.The Shark Tank fame promoter sold a partial stake of about 12.68 lakh shares under the OFS component.The IPO proceeds will be used towards repayment and/or prepayment of all or a portion of certain outstanding borrowings availed by the company; and general corporate purposes. Additionally, proceeds from the OFS shall go to the selling shareholders.
