Emcure Pharma hires corporate finance advisors for IPO

Emcure Pharmaceuticals, a leading Indian pharmaceutical company, has hired corporate finance advisors to help prepare for its public listing on the stock exchange.

Through its initial public offering (IPO), Emcure Pharmaceuticals plans to raise between $400 and $500 million, at a valuation of roughly $3 billion. The public float plan is part of its ambition to accelerate growth and capitalise on major opportunities in the pharmaceutical sector.

Currently valued at $50 billion, India’s pharmaceutical market is expected to grow to $130 billion by 2030, driven by factors such as population growth, a maturing healthcare system, greater access to pharma products, and a rise in middle class income.

Emcure Pharmaceuticals generated revenues of over $720 million in its latest financial year, with the Indian market accounting for between 45% to 55% of its revenues.

The company’s Indian footprint spans 14 manufacturing facilities and a retail distribution network that sells products such as vaccinations and medications in the fields of gynaecology, cardiology, anti-infectives, and vitamins. The pharmaceutical company also provides its products to consumers in 70+ countries worldwide, notably in Canada, the United Kingdom, and Thailand.

For its initial public offering, which is planned for early 2024, Emcure Pharmaceuticals has enlisted an IPO team comprising a number of well-known financial advisors, led by JP Morgan, Jefferies, and Kotak, with support from private equity firm Bain Capital, which currently holds a 13% stake in the business.

India’s pharmaceutical industry is currently experiencing a significant surge in merger and acquisitions activity, marked by historically high company valuations. Mergers and acquisitions have been overall on the rise in India, according to a previous study by Nexdigm, thanks in part to high confidence in the long-term potential of India’s economy.