Emcure Pharma plans to launch $400-500 million IPO in 2024, hires Kotak.

September 26, 2023
News
1 mins read

Source: livemint.com

The development revives the listing plans for Emcure Pharmaceuticals which it shelved as the Russia’s invasion of Ukraine disrupted global markets.

Emcure Pharmaceuticals is planning to raise $400-500 million from initial public offering (IPO) in 2024, news agency Reuters quoted two sources on Monday. The development revives the listing plans for the pharmaceutical company which it shelved in 2022 as Russia’s invasion of Ukraine disrupted global markets. The company has hired investment banks JP Morgan, Jefferies and Kotak for the IPO and the sources said that it is targeting a valuation of about $3 billion.

The Emcure Pharmaceuticals IPO comes as the pharmaceutical market in India is projected to expand from its current valuation of $50 billion to a substantial $130 billion by the year 2030, with a surge in business transactions within the industry.

The pharmaceutical industry is currently experiencing a significant surge in merger and acquisition activity, marked by historically high company valuations. Torrent Pharma, a pharmaceutical manufacturer, is currently engaged in negotiations to purchase its larger competitor, Cipla, in a potential deal worth approximately $7 billion, which would make it the largest pharmaceutical deal ever in the country.

Rising demand for pharmaceuticals

Emcure is one of the firms aiming to seize the opportunity presented by the rising demand for pharmaceuticals in the world’s most populous nation and the increasing health consciousness among its inhabitants.

The company planned its listing in 2022 and wanted to raise around $672 million. Emcure received the regulatory approval for the planned IPO but the Russia’s invasion of Ukraine increased the volatility in the stock market and the company decided to shelve the plans.

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