Emcure Pharmaceuticals has been planning to expand its business as the upcoming initial public offering (IPO) will give the company access to new growth capital which it will use to fund inorganic growth and explore acquisitions.

“The company has primarily focused on organic growth. In addition to expanding its portfolio, Emcure plans to pursue more in-licensing deals similar to its recent distribution agreement with Sanofi India for the exclusive distribution of Sanofi’s cardiovascular brands in India,” said Satish Mehta, MD and CEO, Emcure.

This partnership has positioned them among the top three in the cardiovascular category.

“Over the last 12-15 months, Emcure has added 1,000 field force members to enhance market reach and penetration. The company also plans to enter tier II and III, semi-rural and rural markets,” he said.

As part of its growth strategy, Emcure has launched three new manufacturing facilities in the last 18 months, expanding its capacity.

Pune-based Emcure is the 13th largest pharma company in India, with revenue of INR 6,658 crore in FY24, of which 48.3 percent comes from the domestic market.

Emcure’s IPO will open on July 3 and close on July 5, with the anchor investor offer period on July 2. The price band has been set at INR 960-INR 1,008 per equity share of face value INR 10 each, with bids required for a minimum of 14 equity shares and multiples of 14 equity shares. The INR 1,952.03 crore IPO includes a fresh issue of Rs 800 crore and an offer for sale of IR 1,152.01 crore.

“The company proposes to utilize the net proceeds towards paring a portion of its gross debt at around INR 2,000 crore, “ said Vikas Thapar, President, Corporate Development, strategy and finance, Emcure.

Around INR 600 crore will go for reducing debt and INR 200 crore would be for corporate purposes,” Thapar said.  

The company intends to use the net proceeds to reduce a portion of its gross debt, which stands at around INR 2,000 crore, according to Vikas Thapar, President of Corporate Development, Strategy, and Finance. Approximately INR 600 crore will be allocated for debt reduction, and INR 200 crore will be used for corporate purposes.