{"id":21109,"date":"2024-07-02T15:55:53","date_gmt":"2024-07-02T10:25:53","guid":{"rendered":"https:\/\/www.moneyworks4me.com\/investmentshastra\/?p=21109"},"modified":"2024-07-02T16:05:49","modified_gmt":"2024-07-02T10:35:49","slug":"emcure-pharmaceuticals-ipo-review","status":"publish","type":"post","link":"https:\/\/www.moneyworks4me.com\/investmentshastra\/emcure-pharmaceuticals-ipo-review\/","title":{"rendered":"Emcure Pharmaceuticals IPO Review"},"content":{"rendered":"
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Emcure Pharmaceuticals Ltd IPO Details:<\/strong><\/h2>\n

Estimated Pre-listing Market Cap:<\/strong> ~Rs. 19,000 Cr<\/p>\n

IPO Date:<\/strong> 3rd July to 5th July, 2024<\/p>\n

Total Issue Size:<\/strong> ~1.9 Cr shares<\/p>\n

Fresh Issue:<\/strong> ~0.79 Cr shares<\/p>\n

Offer for Sale:<\/strong> ~1.14 Cr shares<\/p>\n

Price band:<\/strong> Rs. 960 – Rs. 1008 per share<\/p>\n

IPO Issue Size:<\/strong> ~ Rs. ~1,952 Cr<\/p>\n

Lot Size:<\/strong> 14 shares and multiples thereof<\/p>\n

Purpose of Issue:<\/strong> Offer for Sale by Promoter and Investors & Fresh Issue<\/p>\n

Recommendation:<\/strong> Avoid<\/strong><\/p>\n<\/div>\n

About Emcure Pharmaceuticals Ltd: <\/strong><\/h2>\n

Emcure Pharmaceuticals<\/a> is a global pharmaceutical company based in Pune, India, established in 1981. The company focuses on developing, manufacturing, and marketing a wide range of pharmaceutical products, including formulations, active pharmaceutical ingredients (APIs), and biotechnology. Emcure operates in several therapeutic areas such as gynecology, cardiovascular, vitamins, minerals and nutrients, HIV antivirals, blood-related and oncology.<\/p>\n

Financials<\/h3>\n

The company\u2019s profitability has taken a significant hit over the last two years, falling annually by 13%, and revenues have grown at a slow pace of 7% annually. However, these factors miss important nuances. The gross profit margins are stable at 62% of revenue, which suggests that the company has not faced material challenges from competition.<\/p>\n

The decrease in profit can be attributed to the recent capacity expansion undertaken by the company. Employee costs & depreciation have grown at 13% annually which can be attributed to the recent expansion undertaken. The interest cost has grown at a slightly faster rate of 16% annually, a large portion of which is denominated in foreign currency. The increase in other expenses is attributable to increases in advertisement, legal and travelling expenses which have grown at 31%, 16% and 29% annually.<\/p>\n

\"financials\"<\/a><\/p>\n

Despite the recent challenges in profitability and increase in fixed assets that are yet to be fully utilised, the company has maintained healthy ROEs and ROCEs over the last 3 years.<\/p>\n

\"roe<\/a><\/p>\n

\"Emcure<\/a><\/p>\n

Sales by Geography<\/h3>\n

\"sales<\/a><\/p>\n