Emcure Pharma IPO Listing Posts 31.45% Gains: Should You Hold, Sell or Buy?

Emcure Pharma IPO Listing: Emcure Pharmaceuticals on Wednesday listed on stock exchanges with a strong 31.45% listing gain. Its shares were listed at Rs 1,325 per share on the BSE, compared with its issue price of Rs 1,008.

“The listing aligns with pre-listing expectations, fuelled by the robust investor response,” said Shivani Nyati, head of wealth, Swastika Investmart Ltd.

The oversubscription and listing gain highlight investor confidence in Emcure’s established brand, diversified product portfolio, and international market reach, she added.

“However, the pharmaceutical industry’s regulatory stringency and potential disruptions in the raw material supply chain still require ongoing monitoring,” Nyati said.

Emcure Pharma IPO Listing: What Should Investors Do?

Emcure Pharma’s listing performance is positive, which aligns with pre-listing anticipation. The strong investor response and listing gain demonstrate confidence in the company’s future potential, Nyati said.

“However, the identified risks within the pharmaceutical industry necessitate ongoing monitoring by investors. Investors may hold their positions by keeping a stop loss at 1,200,” she added.

Emcure Pharma IPO Details

The Rs 1,952-crore Emcure Pharma IPO, which was opened for public subscription between July 3 and July 5, received a whopping 67.87 times subscription garnering bids for 92,99,96,438 shares as against 1,37,03,538 shares on offer.

The price band of the IPO was fixed at Rs 960-Rs 1,008 per share.

Shark Tank judge Namit Thapar, who is the executive director of Emcure Pharmaceuticals, offloaded shares worth Rs 128 crore through the IPO.

The IPO comprises fresh issuance of equity shares worth Rs 800 crore and an Offer For Sale (OFS) of 1.14 crore equity shares to the tune of Rs 1,152 crore, at the upper end of the price band, by promoters and existing shareholders. This aggregates the total public size to Rs 1,952 crore.

Those selling shares in the OFS include promoter Satish Mehta and investor BC Investments IV Ltd, an affiliate of US-based private equity major Bain Capital. Currently, Satish Mehta holds a 41.85 per cent stake in the company and BC Investments owns a 13.07 per cent stake.