Emcure Pharma IPO may debut with huge gains for investors

Pune-based Emcure Pharmaceuticals Ltd. is expected to make a market debut with as much as 30% gains on Wednesday, July 10, analysts said. Robust subscription demand for IPO, healthy business prospects are some of key reasons behind the expected decent listing.

The grey market premium (GMP) of Emcure Pharmaceuticals has jumped sharply following the closure of the three-day bidding process. Last heard, shares of the company were commanding a premium of ₹365, suggesting a listing pop of 36% for the investors.

Emcure Pharma had received a strong response from the investors during the three-day bidding process. The issue was overall subscribed a stellar 67.87 times at close.

The portion set aside for qualified institutional bidders (QIBs) was booked a whopping 195.83 times. The quota reserved for non-institutional investors was subscribed 48.32 times, while the category set aside for retail investors was booked 7.21 times. The employees portion saw bidding for 8.81 times.

Prashanth Tapse, Research Analyst, Sr VP Research at Mehta Equities believes the investor demand has come considering reasonable valuations and an opportunity to invest in the leading pharmaceutical company in India in the gynecology and HIV antivirals therapeutic areas.

Considering all the parameters subscription demand and market sentiments, it is indicating a healthy room for listing gain in the range of 25-30%, as against the issue price of ₹1,008 per share, Tapse said.

For short term investment perspective, the analyst recommended allotted investors to book profits on listing day, while long term investors can continue to ‘Hold’ the stock.

For long term investors, he said, “Given its strategic focus on high-growth therapeutic areas, innovative product portfolio, successful global expansions coupled and solid R&D foundation, Emcure is well-positioned for sustained growth for long term as well.”

Shivani Nyati of Swastika Investmart said that Emcure boasts a strong foundation for its anticipated success. 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.