Emcure Pharmaceuticals, engaged in developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas, has filed its Draft Red Hearing Prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) to raise funds via initial public offering (IPO).

The offer size is in the range of Rs 4,500 crores to Rs 5,000 crores. The initial public offering (IPO) comprises fresh issuance of equity shares worth ₹1,100 crores and an offer of sale (OFS) of 18,168,356 shares by promoters and existing shareholders, according to the draft red herring prospectus (DRHP).

As a part of the OFS, promoters Satish Mehta and Sunil Mehta will offload 20.30 lakh and 2.5 lakh shares, respectively. Investor BC Investments IV Ltd will divest 99.5 lakh shares. Currently, Satish Mehta and Sunil Mehta hold 41.92 per cent and 6.13% stake, respectively, in the company, while BC Investments owns 13.09%.

The company is considering a pre-IPO placement aggregating up to Rs 200 crore. Proceeds of the fresh issue will be used towards the payment of debt and for general corporate purposes.

Emcure is ranked as the 12th largest pharmaceutical company in India and is the leader in gynaecology, blood-related and HIV antivirals therapeutic areas, based on sales in India in the Financial Year 2021, according to CRISIL.

The company has over 350 brands, 5 R&D centres and 14 manufacturing facilities across India.

In FY21, the company reported a net profit of Rs 419 crores compared to Rs 101 crores in FY 20 and consolidated total income at Rs 6092 crores, up 19% Y-o-Y

Axis Capital, JM Financial, BOB Capital Markets, BofA Securities India Limited, Credit Suisse Securities (India) Private Limited have been appointed as merchant bankers to advise the company on the IPO. The equity shares of the company will be listed on the BSE and NSE.

Emcure Pharmaceuticals is engaged in developing, manufacturing and globally marketing a broad range of pharmaceutical products across several major therapeutic areas. The company has a presence in 70 markets globally. The Pune-based company is currently developing an RNA vaccine for COVID-19 through its subsidiary Genova Biopharmaceuticals.