Emcure Pharmaceuticals IPO Subscription Reaches 31% in First Hour of Bidding, Analysts Suggest Long-term Investment

The initial public offering (IPO) of Emcure Pharmaceuticals Ltd, supported by Bain Capital, has commenced today, marking the start of public subscription. With a price band between Rs 960 to Rs 1,008 per share, the Rs 1,952 crore IPO is set to close on July 5. In the first hour of bidding, the IPO has recorded a 31% subscription, receiving bids for 41,43,650 shares out of 1,34,86,320 shares on offer.

The non-institutional investors’ quota saw a 43% subscription rate, while the retail individual investors (RIIs) portion attained 42% subscription. Emcure Pharmaceuticals secured Rs 583 crore from anchor investors a day before the IPO went live.

The IPO allotment is scheduled for July 8, with the listing anticipated on NSE and BSE by July 10. Analysts have recommended a ‘subscribe’ stance on the IPO with a long-term investment horizon.

As per market observations, unlisted shares of Emcure Pharma Ltd are trading Rs 299 above the issue price in the grey market. This Rs 299 grey market premium implies an expected listing gain of 29.66% from the public issue.

Acknowledged analyst firms, including Anand Rathi, Swastika, and Reliance Securities, have endorsed the IPO. Anand Rathi noted Emcure’s lead in the women’s healthcare market and proposed a ‘SUBSCRIBE – long term’ rating. Meanwhile, Swastika highlighted the company’s large product portfolio and brand-building capabilities, encouraging investors to consider long-term benefits.

Emcure Pharmaceuticals IPO to be conducted on both NSE and BSE has received approval from Sebi earlier this month. The company saw an 11.33% revenue growth but a 6.1% decline in profit after tax between March 2023 and March 2024.