“It’s an emotional morning today. We have listed on the NSE. It was oversubscribed 68 times and listed at a premium of 31% but Mirza Ghalib’s shayari sums up how I feel… Congratulations Team Emcure,” Thapar said.
The successful listing was largely expected given the company’s long-term potential, with analysts advising investors to hold onto their positions to realise healthy gains in the future.
“Strong investor response and gains from the listing indicate confidence in the company’s prospects. However, risks identified within the pharma space require continuous monitoring by investors. Investors can hold on to their positions with stop losses at 1,200,” said Shivani Nyathi, head of wealth at Swastika Investmart.
Headquartered in Pune, Emcure Pharmaceuticals develops, manufactures and globally markets a wide range of pharmaceutical products across several major therapeutic areas. The research and development driven company has a differentiated product portfolio that includes oral, injectable and biopharmaceutical drugs and targets markets in over 70 countries, including India, Europe and Canada. The company proposes to use the net proceeds from the new issue for repayment of debt and general corporate purposes. The global pharmaceutical market is expected to maintain growth at a compound annual growth rate of approximately 5.0% to 5.5% during calendar years 2023-2028, reaching approximately $1.9 trillion (approximately Rs. 157 trillion) to $1.95 trillion (approximately Rs. 161 trillion) in calendar year 2028.
In FY24, the company’s revenue from operations grew 11% to Rs 6,658 crore from Rs 5,985 crore in the previous fiscal, while profit after tax declined 6% to Rs 5,270 crore from Rs 5,620 crore in the previous fiscal.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not represent the views of The Economic Times)
