Emcure to soon file papers for Rs 4,000 crore IPO

Mumbai: Pune-based Emcure Pharmaceuticals, one of India’s biggest unlisted pharma companies likely to file its draft red herring prospectus (DRHP) with the market regulator SEBI next week for Rs 4,000 crore initial public offering (IPO), people aware of the matter told ET.

The IPO will consist of a primary issue and offer for sale from its promoter Satish Mehta and existing investor Bain Capital which acquired about 13 per cent stake in the company seven years back. While the company is looking to dilute up to a 20 per cent stake, its existing investor Bain Capital aims to exit its entire holdings of 13 per cent, said sources.

Ahead of the IPO, the company has appointed four independent directors -- Dr. Shailesh Ayyangar, Vijay Gokhale, Hitesh Jain, and Dr. Vidya Yeravdekar. Earlier this year, Berjis Desai had taken over the chairman of the Emcure board.

While Desai is a former managing partner of JSA, a national law firm, Dr. Ayyangar served as managing director of Sanofi in his latest stint. Vijay Gokhale, an Indian Foreign Service officer, served in a diplomatic assignment in Hong Kong, Hanoi, Beijing, and New York. He has also served as the Deputy Secretary (Finance). Hitesh Jain is the managing partner at Parinam Law Associates. Dr. Vidya Yeravdekar is the Principal Director of Symbiosis Society and the Pro-Chancellor of Symbiosis International University.

Emcure Pharmaceuticals could be the second-biggest IPO in the Indian pharmaceutical sector. Last year Hyderabad based Gland Pharma raised about Rs 6,500 crore through IPO. The other largest IPOs in the pharma space were Rs 1,741 crore raised by Eris Lifesciences in 2017, while Alkem Laboratories and Laurus Labs raised about Rs 1,350 crore each in 2015 and 2016, respectively.

In 2014, the company attempted to hit Dalal Street but did not pursue it after Bain Capital invested about Rs 226 crore, which took care of its immediate liquidity needs.

Last year, Emcure went for a restructuring exercise as its US business faced a headwind with regulatory matters.

Bain Capital had reportedly purchased Blackstone's 13.09 per cent stake for around Rs 650 crore in December 2013.

Emcure Pharma produces healthcare medicines and is also involved in biotechnology drugs. The firm has six manufacturing facilities, including five in Pune and one in Jammu.