Emcure Pharma files DRHP for IPO

Mumbai: Pune-based Emcure Pharmaceuticals, one of India’s biggest unlisted pharma companies, filed its draft red herring prospectus (DRHP) with the market regulator Sebi on Thursday to raise money through an initial public offer.

The issue estimated to be around Rs 4,500 crore would comprise fresh shares of up to Rs 1,100 crore and an offer for sale by promoters and an existing investor of up to 18.17 million shares.

The company proposes to utilise net proceeds from the fresh issue towards repayment of debt.

Promoters Satish Mehta and Sunil Mehta are selling up to 2.03 million and 0.25 million shares respectively in the IPO, while private equity Bain Capital has proposed to sell up to 9.95 million shares.

Emcure is the largest in the gynaecology, blood-related, and HIV antivirals therapeutic areas, based on sales in India in FY21, according to rating firm Crisil.

For the year ended March 31, 2021, the company reported a 20% jump in revenues to Rs 6,056 crore compared to Rs 5,049 crore in FY20. Its net profits surged three times in FY21 to Rs 419 crore compared to Rs 101 crore in FY20.

Axis Capital, BofA Securities, Credit Suisse Securities, JM Financial, and BOB Capital Markets are the bankers to the issue.

Ahead of the IPO, the company has appointed four independent directors — Dr Shailesh Ayyangar, Vijay Gokhale, Hitesh Jain, and D. Vidya Yeravdekar. Earlier this year, lawyer Berjis Desai had taken over the chairman of the board.

In 2014, the company attempted to hit the primary market but did not pursue it after Bain Capital invested about Rs 226 crore, taking care of its immediate liquidity needs.