Emcure Pharmaceuticals IPO Subscription Status

Emcure Pharmaceuticals IPO - Day-2 Subscription at 4.98 times

As of 5.20 pm on 04th July 2024, out of the 137.04 lakh shares on offer in the IPO (excluding anchor portion), Emcure Pharmaceuticals saw bids for 684.87 lakh shares. This implies an overall subscription of 4.98X at a macro level. The granular break-up of subscriptions as of the close of the Day- 2 of the Emcure Pharmaceuticals IPO was as under:

The subscriptions were led by the HNI / NII investors followed by the Retail investors and the QIB investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of QIB bids. Both the QIB and the NII bids pick momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the bulk QIB bids come in. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Data Source: BSE

The IPO is open up to July 05th, 2024, at which point we will know the final subscription status of the IPO. As of today, the IPO subscription status is only updated as of the end of Day-2 of the IPO.

The stock of Emcure Pharmaceuticals has a face value of ₹10 per share and the price band for the book building IPO has been set in the range of ₹960 to ₹1,008 per share. The IPO of Emcure Pharmaceuticals will be a combination of a fresh issue of shares and offer for sale (OFS). The issue closes for subscription on 05th July 2024 and the credits to the demat account to the extent of shares allotted will happen by the close of 09th July 2024 under ISIN (INE168P01015).

Emcure Pharmaceuticals IPO Subscription Status on Day-1 at 1.32 times

As of 5.15 pm on 03rd July 2024, out of the 137.04 lakh shares on offer in the IPO (excluding anchor portion), Emcure Pharmaceuticals saw bids for 180.41 lakh shares. This implies an overall subscription of 1.32X at a macro level. The granular break-up of subscriptions as of the close of the Day-1 of the Emcure Pharmaceuticals IPO was as under:

The subscriptions were led by the HNI / NII investors followed by the Retail investors and the QIB investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of QIB bids. Both the QIB and the NII bids pick momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the bulk QIB bids come in. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Data Source: BSE

The IPO is open up to July 05th, 2024, at which point we will know the final subscription status of the IPO. As of today, the IPO subscription data is only updated as of the end of Day-1 of the IPO.

Emcure Pharmaceuticals - Share Allocation Across Categories

The entire anchor allocation was made at the upper end of the price band of ₹1,008 per share. This includes the face value of ₹10 per share plus a share premium of ₹998 per share, taking the anchor allocation price to ₹1,008 per share. Let us focus on the anchor allotment portion ahead of the Emcure Pharmaceuticals IPO, which saw the anchor bidding opening and also closing on 02nd July 2024. Post the anchor allocation, here is how the overall allocation looked.

Data Source: Company RHP / BSE

Here it must be noted that the 57,79,850 shares allocated to the anchor investors on 02nd July 2024, were actually reduced from the original QIB quota; and only the residual amount would be available to QIBs in the IPO. That change has been reflected in the table above, with the QIB IPO portion reduced to the extent of the anchor allocation. As a result, the QIB quota has reduced from 48.98% before the anchor allocation to 19.31% after the anchor allocation. The overall allocation to QIBs includes the anchor portion, so the anchor shares allotted has been deducted from the QIB quota for the purpose of the public issue.

About Emcure Pharmaceuticals IPO

The IPO of Emcure Pharmaceuticals will be open from July 03rd, 2024 to July 05th, 2024; both days inclusive. The stock of Emcure Pharmaceuticals has a face value of ₹10 per share and the price band for the book building IPO has been set in the range of ₹960 to ₹1,008 per share. The IPO of Emcure Pharmaceuticals will be a combination of a fresh issue of shares and offer for sale (OFS). The fresh issue brings in fresh funds into the company, but is also EPS and equity dilutive. The OFS is just a transfer of ownership; and hence neither EPS nor equity dilutive. The fresh issue portion of the IPO of Emcure Pharmaceuticals comprises the issue of 79,36,507 shares (79.37 lakh shares approximately), which at the upper price band of ₹1,008 per share will translate into a fresh issue size of ₹800.00 crore. 

The offer for sale (OFS) portion of the IPO of Emcure Pharmaceuticals comprises the sale / offer of 1,14,28,839 shares (114.29 lakh shares approximately), which at the upper price band of ₹1,008 per share will translate into an OFS size of ₹1,152.03 crore. The 114.29 lakh shares in the OFS is being offered by a mix of promoter shareholders and investor shareholders. Out of the 114.29 lakh shares offered in the OFS, 17.39 lakh shares will be offered by the promoter shareholders; 10.46 lakh shares will be offered by the promoter group shareholders; 72.34 lakh shares by BC Investments IV Ltd; and the balance by other individual shareholders. Therefore, the total IPO of Emcure Pharmaceuticals will comprise of a fresh issue and an OFS of 1,93,65,346 shares (193.65 lakh shares approximately) which at the upper end of the price band of ₹1,008 per share aggregates to total issue size of ₹1,952.03 crore. The IPO of Emcure Pharmaceuticals will be listed on the NSE and the BSE on the IPO mainboard. The final issue figures could differ marginally.

The fresh funds will be used for repaying / prepaying some of its outstanding debts and partially for general corporate purposes. The promoters of the company are Satish Ramanlal Mehta, Sunil Rajnikant Mehta, Namita Thapar, and Samit Satish Mehta. The promoters currently have 98.90% stake in the company, which will get diluted post the IPO. The IPO will be lead managed by Kotak Mahindra Capital, Axis Capital, Jefferies India, and JP Morgan India; while Link Intime India Private Ltd will be the IPO registrar.

Next Steps in the Emcure Pharmaceuticals IPO

The issue opens for subscription on 03rd July 2024 and closes for subscription on 05th July 2024 (both days inclusive). The basis of allotment will be finalized on 08th July 2024 and the refunds will be initiated on 09th July 2024. In addition, the demat credits are expected to also happen on 09th July 2024 and the stock will list on 10th July 2024 on the NSE and the BSE. Emcure Pharmaceuticals will test the appetite for private sector new age pharma stocks in India. The credits to the demat account to the extent of shares allotted will happen by the close of 09th July 2024 under ISIN (INE168P01015).