Emcure Pharma listing: Stock makes solid debut on NSE, BSE with 31% premium

Emcure Pharmaceuticals listing: Stock made a strong market debut as they got listed at Rs 1,325, a 31 per cent premium over the issue price of Rs 1,008 on the NSE and BSE today

Emcure Pharma listing: Emcure Pharmaceuticals made a strong stock market debut with its shares getting listed at Rs 1,325, a 31 per cent premium over its issue price of Rs 1,008, on the National Stock Exchange (NSE) and BSE on Wednesday.

The stock of the pharmaceutical company, later, moved higher to Rs 1,380, a 37 per cent premium over its issue price on the NSE. Emcure Pharma's strong listing comes on the back of robust demand for its IPO and healthy business prospects.

Emcure Pharma’s IPO had received a strong response from investors with the issue getting an overall subscription of 67.87 times. The portion set aside for qualified institutional bidders (QIBs) was booked a whopping 191.24 times. The quota reserved for non-institutional investors (NII) was subscribed 49.32 times, while the category set aside for retail investors was booked 7.36 times. The employees portion saw bidding for 8.81 times.

Emcure Pharma is a research-focused company involved in the development, manufacturing, and global marketing of pharmaceutical products across key therapeutic areas. Its portfolio includes oral medications, injectables, and biotherapeutics.

Given its strong research & development (R&D) expertise in differentiated products, established domestic and international presence, strong focus on the women’s healthcare market, improved profitability post IPO, and diversified product portfolio, most brokerages had assign a 'Subscribe' rating from a medium to long term basis. Analysts believe that the company has a scope of business improvement on the back of industry tailwinds and business scalability.

"Emcure is the one of the top companies in covered markets and market leader in gynecology therapeutic areas with a strong domestic and international presence. EPL will focus on pharmaceutical products used in chronic (including sub-chronic) therapeutic areas which are expected to register higher growth than acute therapeutic areas over the next five financial years," analysts at Reliance Securities had said in their IPO note.

Emcure Pharma has significant investments in new manufacturing facilities. Initiatives to increase sales force effectiveness will drive higher growth in the coming years, building strong brands. With improving life expectancy, rising incidence of chronic diseases, and improving awareness, the domestic tailwinds are stronger for the company. Besides, deepening the international presence with a focused Go to market approach will improve the financial matrix over the years, the brokerage firm had said.

Emcure has a strong domestic presence with leadership positions across key brands. Increased geographic penetration will help to grow the company’s topline, while debt reduction from proceeds of the issue will augment profitability, SBI Securities said.