Emcure Pharmaceuticals, a Pune-based company and a powerhouse in the pharmaceutical industry, has received approval from the market regulator SEBI to launch its much anticipated Initial Public Offering (IPO).
According to various reports, the IPO is expected to likely launch in July.
Details of the IPO
The IPO comprises a two-pronged approach to raise capital. First, the fresh issue, where the company plans to issue equity shares worth Rs 800 crore, and the second, Offer for Sale (OFS), where existing shareholders, including prominent promoters and stakeholders, will offer 1,36,78,839 equity shares.
The key stakeholders participating in the OFS include names like Satish Ramanlal Mehta and Sunil Rajanikant Mehta, alongside other notable investors
Use of IPO Proceeds
The funds raised from the IPO will primarily be allocated towards the following:
i) Debt Repayment - Approximately Rs 640 crore will be allocated towards reducing existing borrowings.
ii) General Corporate Purposes - The remaining funds will support Emcure's operational expansions and other corporate endeavors.
The IPO comprises a two-pronged approach to raise capital | Photo credit: pixabay.com
About the company
The company is founded and backed by Bain Capital. The Emcure Pharmaceuticals has its operations across 70 countries including key markets like India, Europe, and Canada and has carved out a niche in developing, manufacturing, and marketing pharmaceutical products across major therapeutic areas.
It operates 13 state-of-the-art manufacturing facilities across India, located in Maharashtra, Gujarat, Sikkim, Karnataka, and the union territory of Jammu and Kashmir.
