IPO: Bain Capital-Backed Emcure Pharmaceuticals Looks To List

Pune's Emcure Pharma files draft prospectus for IPO.

<div class="paragraphs"><p>Capsules sit in a sample container at a pharma factory. (Photographer: Mikael Sjoberg/Bloomberg).</p></div>
Capsules sit in a sample container at a pharma factory. (Photographer: Mikael Sjoberg/Bloomberg).

Pune-based Emcure Pharmaceuticals Ltd. filed its draft red herring prospectus with the Securities and Exchanges Board of India on Thursday.

The company is looking to raise Rs 1,100 crore through a fresh issue of equity shares and also conduct an offer for sale of 1.82 crore shares owned by promoters, promoter group and other investors.

The selling shareholders include:

  • Promoters Satish Mehta and Sunil Mehta who cumulatively own 48.05% stake in the company

  • Family members of the promoters who own 33.55% stake

  • BC Investments IV Ltd, an affiliate of Bain Capital, which owns 13.09%

  • Other investors who own 4.23%

In the offer for sale, the promoters are looking to sell up to 22.8 lakh equity shares, the promoter group is looking to sell up to 37.35 lakh shares, BC Investments is looking to sell up to 99.5 lakh shares and other shareholders will look to sell 22 lakh shares.

The selling shareholders may also undertake a pre-IPO placement worth Rs 200 crore before filing the red herring prospectus, the DRHP said. Merchant bankers to the IPO include BoB Capital, Axis Capital, BofA Securities, Credit Suisse and JM Financial.

Emcure develops, manufactures and markets a broad range of pharmaceutical products - formulations, biologics, APIs - across major therapeutic areas including gynaecology, cardiology, blood-related, oncology, respiratory, CNS and HIV.

The company has more than 350 brands, 5 R&D centers and 14 manufacturing facilities across India, as per information on its website. It sells in over 70 countries. It is currently developing a Covid-19 vaccine on the mRNA platform, a company statement said.

At least Rs 947.6 crore from the proceeds of the offer will be used to repay either full or a part of Emcure Pharma's borrowings, according to the DRHP. As of March 31, the company's total outstanding borrowings were at Rs 1,712 crore.

Emcure Pharma's lenders include Export Import Bank of India, Aditya Birla Finance, Tata Capital, Shinhan Bank, Bajaj Finance, Bank of Maharashtra and Bank of Baroda.

As of March 31, the company reported a consolidated net profit of Rs 419 crore, up over four times from Rs 101 crore reported a year ago. Consolidated total income for FY21 stood at Rs 6,092 crore, up 19% year-on-year.

On June 4, the Mumbai bench of the National Company Law Tribunal approved the demerger of Emcure Pharma's U.S. market business under its arm Avet Lifesciences Ltd.