EmcureIPO 1

EMCURE PHARMACEUTICALS
IPO ANALYSIS
ABOUT THE COMPANY
 Emcure Pharmaceuticals is an Indian Pharmaceutical company engaged in developing,
manufacturing and globally marketing a broad range of pharmaceutical products across
several major therapeutic areas.
 According to the RHP, Emcure Pharmaceuticals Limited is a R&D driven company with a
product portfolio that includes oral injectables and bio therapeutics which has enabled them to
reach a range of target markets across over 70 countries with a strong presence in India,
Canada and Europe.
 Emcure has a strong focus in the women’s healthcare market. As per the RHP, they are a
market leader in the gynecology therapeutic area in the Indian Pharmaceutical market.
INDUSTRY ANALYSIS
 The Global Pharmaceutical market is expected to sustain a 5.0-5.5% CAGR between 2023 and
2028 to reach approximately US$1,900 to US$1,950 billion (approximately ₹157-161 trillion)
by 2028.
 The Indian domestic formulations segment (consumption) is expected to grow at a CAGR of
8-9% over the next five years from the Financial Year 2024 to reach approximately ₹2.9-3.0
trillion in the Financial Year 2029, aided by strong demand because of rising incidence of
chronic diseases, increased awareness and access to quality healthcare.
INDUSTRY ANALYSIS
The time-to-market of new products is an important source of pharmaceutical player’s competitive
advantage. Generic pharmaceutical companies tend to improve their market position by being first in
the market when a patent on an original product expires. The expiry of patents for original products
presents opportunity for generic companies and partner CDMO firms to launch generic versions of
the products.
REVENUE BIFURCATION
KEY API’S
R&D EXPENSES AND PATENTS
 As of March 31, 2024, company have five R&D facilities in India, and have established dedicated
teams for new product development, including complex generic APIs and bio-therapeutics,
technology transfer and life cycle management.
 As of March 31, 2024, the R&D team consisted of 548 qualified scientists, of which 11 are post
doctorates, 48 hold Ph.Ds, 391 are post graduates, and the remaining are graduates.
KEY RISKS
 The pharmaceutical company adheres to regulations from various global agencies. While past
inspections yielded no critical remarks, a 2019 USFDA warning letter prompted corrective
actions. Recalls occurred due to contamination and packaging issues. Ongoing compliance is
crucial to prevent regulatory actions and product liability claims.
 Emcure Pharmaceuticals operates in a highly regulated industry, requiring various permits and
approvals. Failure to obtain or maintain these approvals, compliance issues, or regulation changes
could adversely impact business operations, financial conditions, and results. Delays in product
approvals and reliance on local distributors pose additional risks.
 Supply chain disruptions or price increases in outsourced raw materials and finished products can
negatively impact product supply, pricing, and overall business for Emcure Pharmaceuticals,
leading to adverse effects on cash flows, financial conditions, and operational results.
FINANCIALS
FINANCIALS AND VALUATIONS
 The company's operating profit increased by 3.8% YoY during the fiscal.
Operating profit margins witnessed a fall and stood at 18.3% in FY24 as
against 19.6% in FY23.
 Depreciation charges increased by 20.1% and finance costs increased by
11.0% YoY, respectively.
 Other income grew by 24.1% YoY.
 Net profit for the year declined by 6.1% YoY.
 Net profit margins during the year declined from 9.4% in FY23 to 7.9% in
FY24.
PEERS COMPARISON
ANCHOR INVESTORS
•HDFC Mutual Fund
•ICICI Prudential Mutual Fund
•SBI Mutual Fund
•Abu Dhabi Investment Authority
•Goldman Sachs Asset Management
•Nomura
•HDFC Life Insurance Company
•ICICI Prudential Life Insurance Company
•SBI Life Insurance Company
•Birla Mutual Fund
•Kotak Mutual Fund
•Nippon Mutual Fund
•Mirae Mutual Fund
•IIFL WhiteOak
OBJECTS OF THE ISSUE
Company proposes to utilize the net proceedings towards funding of the following objects:
1. Repayment and/or payment of all or a portion of certain outstanding borrowings availed by
the company.
2. General Corporate Purposes
IPO DETAILS
IPO SUBSCRIPTION DETAILS
GREY MARKET PREMIUM
 Emcure Pharma was listed on the stock exchange on 10-07-2024. The IPO was subscribed 67.87x.
 The last GMP for Emcure Pharma IPO was ₹300, updated on Jul 10th 2024 10:23 AM. As per the last
GMP, the expected profit/loss for the IPO was 29.76%.
 The issue price of Emcure Pharma IPO (EMCURE,544210) was ₹1008.00, listed at a price of ₹1325.05,
which is 31.45% higher than the allotment price.
 The expected IPO listing price as per grey market was ₹1308, listed above GMP price and marked as
positive listing for GMP.
GREY MARKET PREMIUM
THANK YOU

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EMCURE PHARMACEUTICALS

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