Emcure Pharmaceuticals IPO: Gets Sebi go-ahead to raise fund via initial share sale

Bain Capital-backed Emcure Pharmaceuticals has received capital markets regulator Sebi's go-ahead to raise funds through an initial share sale.

The initial public offering (IPO) comprises fresh issuance of equity shares worth Rs 1,100 crore and an offer of sale (OFS) of 18,168,356 equity shares by promoters and existing shareholders, according to the draft red herring prospectus (DRHP).

As part of the OFS, promoters -- Satish Mehta will offload 20.30 lakh equity shares, Sunil Mehta will sell 2.5 lakh equity shares -- and investor BC Investments IV Ltd will divest 99.5 lakh equity shares among others.

Currently, Satish Mehta and Sunil Mehta hold 41.92 per cent and 6.13 per cent stake in the company respectively, while BC Investments own 13.09 per cent stake.

Emcure Pharmaceuticals, which filed preliminary IPO documents with Sebi in August, obtained observations letter on December 8, an update available with the markets watchdog showed on Monday.

In Sebi parlance, issuance of observations letter implies its go-ahead for the IPO.

The company considers a pre-IPO placement aggregating up to Rs 200 crore. If such placement is completed, the fresh issue size will be reduced.

Proceeds of the fresh issue will be used towards payment of debt and for general corporate purposes.

Emcure Pharmaceuticals is engaged in developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas. 

The company has presence in 70 markets globally.

The Pune-based company is currently developing RNA vaccine for COVID-19 through its subsidiary, Gennova Biopharmaceuticals.

Axis Capital, JM Financial, BOB Capital Markets, BofA Securities India Limited, Credit Suisse Securities (India) Private Limited are the book running lead managers to the issue. 

The equity shares of the company will be listed on the BSE and NSE.