Bain-backed Emcure Pharma jumps 35% on listing at $223 mn valuation
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Bain-backed Emcure Pharma jumps 35% on listing at $223 mn valuation

By Reuters

  • 10 Jul 2024
Bain-backed Emcure Pharma jumps 35% on listing at $223 mn valuation
Satish Mehta, MD & CEO, Emcure Pharma

Indian drugmaker Emcure Pharmaceuticals' shares rose 34.9% in debut trade on Wednesday, beating analysts' estimates and valuing the company at 18.64 billion rupees ($223.3 million), as its strong presence in women's healthcare and HIV treatments drew investors in a red-hot IPO market.

In an IPO market where more than 100 companies raised over $4.6 billion so far this year, Bain Capital-backed Emcure is the first drugmaker to go public in 2024.

Analysts expected Emcure's shares to list at nearly a 20% premium.

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The stock opened at 1,325.05 rupees on the National Stock Exchange, compared with its offer price of 1,008 rupees.

The Pune, Maharashtra state-based company's initial public offering was oversubscribed nearly 68 times last week and drew bids worth up to $11 billion with Bain selling nearly a third of its 13.07% stake.

Six pharma companies went public in 2023, the largest of which was the May 2023 debut of Mankind Pharma, whose IPO was also the largest across sectors in the year.

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Emcure's focus on areas such as gynaecology, where it has a market-leading 14% share, and HIV treatments are expected to drive its sales growth, analysts have said.

Its gynaecology portfolio includes medicines for infertility treatment and to aid with menstrual pain.

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