IPO: Emcure Pharma’s IPO Subscribed 5.5 times at the start of Day 3
Emcure Pharmaceuticals’ public issue received a good response on the last trading day of the offer on July 5, as the bidding was led by non-institutional and retail investors. The Rs.1,952.03 crore public issue was subscribed to 5.5 times, with bids for 7.5 crore shares as against the 1.37 crore shares on offer.
The IPO of the pharma company comprises Rs.800 crore of fresh offerings of its shares, apart from an offer-for-sale of Rs.1.14 crore of shares valued at Rs.1,152. Shareholders of this amount also include the promoters Satish Ramanlal Mehta, Sunil Rajanikant Mehta, Namita Vikas Thapar, and Samit Satish Mehta.
The bidding was all done by non-institutional investors, and they subscribed to 15.30 times their allotted quota and retail investors paid 3.7 times the amount reserved for such purposes. About the bids, employees of Emcure Pharmaceuticals demonstrated considerable interest, placing bids 5.1 times their allotted quota. The qualified institutional buyers (QIB) also showed their interest in the IPO by bidding for the entire lot.
Brokerages have given positive reactions to the IPO of Emcure Pharma since they considered it well-priced in relation to other listed firms. It may be noted that sixteen brokerage houses have advised investors to subscribe to the issue.
Before the launch of a public offer, Emcure Pharmaceuticals raised funds of Rs.582.6 crore through an anchor book. Top-class global investors including Abu Dhabi Investment Authority, Goldman Sachs and Morgan Stanley bought more than Rs.71 crore worth of shares from the anchor book.
Moreover, several AMCs – SBI mutual fund, HDFC mutual fund, ICICI Prudential fund, Whiteoak Capital, Aditya Birla Sun Life Trustee, Axis mutual fund, Kotak mutual fund, Nippon Life India AMC, Mirae AMC, Franklin India mutual fund, UTI mutual fund, Canara Robeco AM and Motilal Oswal AMC, all took a hand in the anchor book participation.
Other major investors were HDFC Life Insurance Co. Ltd., ICICI Prudential Life Insurance Co. Ltd., SBI Life Insurance Co. Ltd., Amundi Funds, Neuberger Berman Emerging Markets Equity Fund, The Prudential Assurance Co. Ltd., Bajaj Allianz Life Insurance Co. Ltd. and Max Life Insurance Co. Ltd.
The price band for this public issue is Rs.960 to Rs.1,008 per share.
