Emcure Pharmaceuticals IPO: 10 key risks investors should consider before subscribing to the 1,952-crore issue

Emcure Pharmaceuticals IPO subscription opens with ₹582 crore raised from anchor investors. Price range set at ₹960-1,008 per share. IPO closes on July 5 with allocation percentages for different investor categories.

Emcure Pharmaceuticals IPO sails through first day of bidding smoothly led by non institutional and retail investors. The Pune-based firm's issue get fully subscribed on the day 1 itself. The IPO consists of a new issue of equity shares valued at ₹ 800 crore and an offer of sale (OFS) by promoters and current shareholders for 1.14 crore equity shares, valued at ₹ 1,152 crore, at the top end of the price range. The overall public size as a result comes to ₹ 1,952-crore. Among those selling shares in the OFS are investor BC Investments IV Ltd., a division of US-based private equity behemoth Bain Capital, and promoter Satish Mehta. Right now, BC Investments has 13.07% of the company's equity, while Satish Mehta has 41.85%. Also Read: Emcure Pharmaceuticals IPO opens today: GMP, subscription status, review, other details. Apply or not? The new issue's proceeds will be applied to general company operations and debt repayment. Brokerage firms have estimated that the company's post-issue market capitalisation will exceed ₹ 19,000 crore, according to news reports. A wide range of pharmaceutical treatments spanning numerous important therapeutic areas are developed, manufactured, and marketed internationally by Emcure Pharmaceuticals, a Pune-based company. Also Read: Emcure Pharmaceuticals IPO: Shark Tank’s Namita Thapar likely to earn ₹ 127 crore from OFS Here are some of the key risks listed by the company in its Red-Herring Prospectus (RHP): Also Read: Emcure Pharma IPO: Here’s what GMP signals ahead of opening for subscription Also Read: Emcure Pharmaceuticals IPO sets price band at ₹ 960-1,008 apiece; Namita Thapar to offload stake partially Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.