Emcure Pharmaceuticals Limited IPO Review

emcure pharmaceuticals ipo
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Mr Satish Mehta founded Emcure Pharmaceuticals Limited in 1981. It is one of the leading Indian pharmaceutical companies in the country. The Company started their operations in 1983. The first facility of the Company was at Bhosari in Pune. The Company manufactures a range of formulations along with API’s Active Pharmaceutical Intermediates and Ingredients. The Company has ten operational plants in India. It also has vast and global exposure through its subsidiaries. The Company has market exposure in over 65 countries. Some of its associations and subsidiaries are Heritage Pharmaceutical Inc of the USA, Tillomed, which operates in the UK & Europe and Marcan of Canada. The Company has a massive presence in the regulated markets, domestic markets and emerging markets. In this article, we take a closer look at the Emcure Pharmaceuticals IPO Review and its possible future prospects. 

Pharmaceuticals is engaged in manufacturing and formulations of the critical chronic therapeutic segments. It includes anti-HIV, oncology, cardiology and neurology. It is also involved in acute details. The sensitive components include anti-infective, gynaecology, pain management, paediatrics and dermatology. 

The Company has divided their business operation into two major categories. 

  1. Formulation’s business: Under this business, they centre around pharma products in various structures and creative medication conveyance strategies with expanded viability 
  2. APIs: Under this business prospect, they use chiral science for the production of API’s, ability in convoluted APIs, antiretroviral and oncology items.


  • Prepayment of all the loans of the Company, which will be availed on a consolidated basis. 
  • To meet corporate targets. 
  • To fund the working capital requirement   


Emcure Pharmaceuticals Limited has its headquartered in Pune. The Company has submitted its DRHP to SEBI. The Company is waiting for the approval of SEBI to float its IPO in the Market. The IPO issue size is 4500 -5000 Crores; it will comprise an OFS and issue fresh equity shares. The new equity will be Rs.1100 crore and an OFS, consisting of 18,168,356 equity shares.

Through the OFS, the Company’s promoters Satish Mehta and Sunil Mehta will be offloading 20.30 lakh and 2.5 lakh shares, respectively. The other selling stakeholders are Investor BC Investments IV Ltd. It will offload their 99.5 lakh shares. Satish Mehta has a holding of 41.92%, while Sunil Mehta has a holding of 6.13%. BC Investments owns a 13.09% equity stake in the Company. The Company also plans for a pre-IPO offer of ₹200 crores inclusive of the IPO Offer. Check Day by Day IPO Subscription Details (Live Status)

IPO Opening DateNovember 2021
IPO Closing DateNovember 2021
Issue TypeBook Building Type
Face ValueRs.10/ Equity Share
IPO Price 
Market Lot 
Min Order Quantity 
Listing AtBSE, NSE
Issue SizeRs.4500-500 Crores (estimated)
Fresh Issue1,100 Crore
Offer for Sale18,168,356 equity shares
Basis of Allotment DateNovember 2021
Initiation of RefundsNovember 2021
Credit of Shares to Demat AccountNovember 2021
IPO Listing DateNovember 2021
Basis Of Allotment Type% Of IPO Offer
Qualified Institutional Buyer50
Non-Institutional Investor15


  • The Company believes that its key and aligned advertising technique has empowered its situation in existing regions while venturing into new business sectors practically and productively. 
  • Diversified product portfolio along with reach and exposure in more than 68 countries.
  • The Company is majorly an R&D and a production unit firm. The principal strength of the Company is their ability to contemplate, create, and fabricate specific pharmaceutical products. 
  • The Company have a team of 500 scientists along with five specific R&D focuses. The Company till now has obtained 161 patents and had 98 patent applications forthcomings. 
  • The Company is upheld by the solid geographic variety in income, satisfactory and improving results in working productivity. 
  • The Company recorded a revenue development of 8-10%, along with the sustaining operating profitability matrix increased to 18-20% 
  • The Company has formulated a plan for the gradual repayments of debt and interest. Their focus is to be debt-free till FY23.
  • Their business is very much situated to exploit a predominant situation in the Indian Market. 
  • At the Global business level, they have a vast, diversified and quickly developing item portfolio. 
  • Capacities in their R&D department and innovative work driving a Diversified Product Portfolio.
  • Creating their own Brands Proven Abilities. 
  • Their Production Capabilities are Broad and highly specialized. 
  • The Company operates on a De-Risked Business Strategy, working with Diversified Revenue Sources. 
  • Accentuation on Environmental, Social, and Governance (ESG) system. 
  • The Company has a highly experienced and well-qualified management and board of directors group.
  • In FY21, the Company reported a 20% increase in revenues to Rs 6,056 crore from Rs 5,049 crore in FY20. The net profit of the Company has also increased three times in the exact period.
  • From 2019 to 2021, the Company’s total sales in India increased with a CAGR of 11.28%. The Company showed an outperformance concerning the overall pharma sector as the sector sales only increased by 5.8%.
  • Seven of the Company’s products are on the top 300 pharmaceutical products listed as per the domestic market sales.
  • The Company is currently working on an RNA vaccine for COVID-19. It is a growth aspect for the Company. It is working along with its subsidiary Genova Biopharmaceuticals.
  • Emcure Pharma strengthened its board with the inclusion of four new independent directors. 
  • The Company’s operating margin improved to 20% in the first half of 2021. It was due to better product mix and scale-up in high margin domestic. The other factors were better expense management and lower marketing and travelling cost.


  • The COVID-19 pandemic has affected their business operations along with operating margins.
  • Any halt or slowdown in the developing, production and R&D activities may adversely affect the Company’s business. 
  • The inability to effectively foresee interest and the supply and demand matrix and handling the inventories may impede the business operations. 
  • The Company, its Promoters, Directors and Group Companies all are currently facing trial under legal procedures. Any negative news from there can have an impact on the Company.
  • The Company operates in a highly competitive sector. Competition from its peer is another threat to the Company.
  • The inability of the Company to execute its business strategy and development plan effectively can affect the organization. 
  • The Company can also see operational and functional issues due to its subsidiaries or its inability to incorporate acquired businesses effectively. 
  • The business operations might endure if the Company don’t extend and effectively execute their marketing and distribution network plans.
  • The Company is exposed to the dangers related to forex rate changes. 
  • The Company is subject to strict guidelines, rules and regulations. Especially the US FDA guidelines as most of their business is from the USA.
  • The most of the revenue of the Company is from their R&D and production techniques. The raw materials or the process materials used by them are very toxic and combustibles. An outbreak of fire in their production centre and R&D facility is also another risk.
  • They are likely susceptible to counterparty credit risk. Any instalment deferrals may adversely affect the tasks of the Company. 
  • Many of their corporate records, for example, those relating to RoC filings, are untraceable. 
  • The accessibility of fake prescriptions can hurt their products.
  • The Company has an average financial risk profile. It is due to the moderate obligation security measurements, which is a result of the sizeable debt-funded CAPEX plan of Rs.2000 Crore.
  • The working operations of the Company are cost-intensive operations. 
  • Emcure Pharmaceuticals operating performance is impacted mainly due to low revenue growth and operating losses from their US Business.
  • The organization has high gross debt. It was somewhere around 2300 Crore in FY20.
  • The Company had a modest Interest cover of only 2.71x in FY20. 
  • The Company recorded a sharp decline in ROCE from 13.7% to 8.7% only in FY20.
  • Higher-than-anticipated obligation levels, because of enormous obligation subsidized CAPEX or acquisitions, stretching of working capital cycle, or because of extra monetary help delivered to the US business after the demerger. It has led to the debt to EBITDA ratio being at 3.25 – 3.5 times.
  • The significant stakeholders have reduced their stake in the Company over the period.
ParticularsFor the year/period ended ( in Cr.)
Total Assets6,807.406,004.065,810.44
Total Revenue6,091.815,130.864,815.59
Profit After Tax418.59100.61202.97
  • The Revenue/turnover ratio of the Company is over INR 500 Crores.
  • The Net worth of the Company has increased by 20.23 % in the last financial year.
  • The EBITDA of the Company has grown by 75.57 % in the previous financial year.
  • The Total assets of the Company have increased by 25.62 % in the last financial year.
  • The Liabilities of the Company has grown by 29.67 % in the previous financial year.

Bottom of Form

Operating RevenueOver INR 500 Crore
EBITDA 75.57 %
Networth 20.23 %
Debt/Equity Ratio 0.57
Return on Equity 18.27 %
Total Assets 25.62 %
Fixed Assets -1.99 %
Current Assets  20.34 %
Current Liabilities  29.67 %
Trade Receivables -12.20 %
Trade Payables  30.93 %
Current Ratio  1.24


The Promoters of the company are:

  • Satish Mehta
  • Sunil Mehta
Pre-Issue Share Holding48.05 %
Post Issue Share Holding


 Emcure Pharmaceuticals Limited

 Emcure House, T-184, M.I.D.C., Bhosari,

 Pune – 411 026, Maharashtra, India.

 Tel: +(91) 20 35010000/ 40700000

 E-mail: investors@emcure.co.in

 Website: www.emcure.com


Link Intime India Private Limited

 C-101, 1st Floor, 247 Park

 L.B.S. Marg, Vikhroli West,

 Mumbai 400 083

 Maharashtra, India

 Tel: +91 22 4918 6200

 E-mail: emcurepharma.ipo@linkintime.co.in

 Website: www.linkintime.co.in


  • Axis Capital Limited
  • BofA Securities India Limited
  • Credit Suisse Securities (India) Private Limited
  • JM Financial Limited
  • BOB Capital Markets Limited


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