Emcure Pharma to make stock market debut on Wednesday; here's what to expect as GMP corrects

Shares of Emcure Pharmaceuticals are to make their Dalal Street debut on Wednesday, July 10 and the drugmaker is expected to deliver a decent listing pop to the investors, even after its grey market premium (GMP) has corrected significantly, post the allotment of shares in the IPO.
 

Ahead of its listing, shares of Emcure Pharma were commanding a grey market premium (GMP) of Rs 320-330 per share, suggesting a listing pop of around 32-33 per cent for the investors. However, the premium in the unofficial market stood at Rs 390-400 on the last day of the bidding for the issue.
 

Emcure Pharma, a leading player in the pharma market, is set for a stellar stock market debut, around a significant 36.9 per cent premium over the issue price. This fervor aligns with the impressive subscription of 67.87 times, showcasing immense investor confidence, said Shivani Nyati, Head of Wealth at Swastika Investmart
 

"The company possesses a diverse and rapidly growing product portfolio catering to both domestic and international markets. Their proven brand-building capabilities and robust R&D infrastructure further solidify their market position. Despite these considerations, the overwhelming investor demand and Emcure's strong fundamentals point toward a positive listing," she said.
 

The IPO of Pune-based Emcure Pharma was open for bidding July 03 and July 05. The drug and pharma company offered its shares in the price band of Rs 960-1,008 apeice with a lot size of 14 shares. The company raised a little more than Rs 1,952 crore via its primary offering, which included a fresh share sale of Rs 800 crore and an offer-for-sale (OFS) of up to 79,36,507 shares.
 

The issue was overall subscribed a stellar 67.87 times. The quota for qualified institutional bidders (QIBs) was booked a whopping 195.83 times The quota for non-institutional investors was subscribed 48.32 times. The portions reserved for retail investors and employees saw bidding for 7.21 times and 8.81 times, respectively during the three-day bidding process.
 

Emcure Pharma is expected to have a decent listing at around Rs 1,370-1390 per share, resulting in a listing premium of around 37 per cent, said Amit Goel, Co-Founder & Chief Global Strategist at Pace 360.
 

"Post listing, investors should book profits and we advise investors to stay away from long term investment in this stock as we believe Indian markets are the biggest bubble ever in the history of world equity markets. However, in the shorter term it might outperform the markets," he said.
 

Emcure Pharma, incorporated in 1981, is a homegrown pharmaceutical company which develops, manufactures, and globally markets a wide range of pharmaceutical products across several major therapeutic areas. The company has 13 manufacturing facilities across pan India.
 

Brokerage firms were mostly positive on the issue suggesting investors to subscribe to it. Axis Capital, Kotak Mahindra Capital, JP Morgan India and Jefferies India were the book running lead managers of the Emcure Pharma IPO, while Link Intime India was the registrar for the issue. Shares of the company shall be listed on both BSE and NSE.
 

 

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