Emcure Pharmaceuticals, a prominent player in the pharmaceutical industry, is gearing up to reinitiate its initial public offering (IPO) in 2024, with aspirations to raise between $400 million and $500 million. This decision marks a revival of its listing plans, which were put on hold in 2022 due to the global market turbulence caused by Russia’s invasion of Ukraine.
According to sources cited by Reuters, Emcure Pharmaceuticals has engaged the services of esteemed investment banks such as JP Morgan, Jefferies, and Kotak for its IPO preparations. The company is eyeing a valuation of approximately $3 billion when it goes public.
As part of the IPO preparations, it has been reported that Bain Capital, which holds a 13% stake in Emcure Pharmaceuticals, is planning to divest its ownership in the company. This divestment is expected to be a significant component of the IPO, potentially contributing to the overall funds raised.
The decision to revive the IPO plans aligns with the positive growth prospects within the pharmaceutical sector in India. The Indian pharmaceutical market, currently valued at $50 billion, is projected to witness substantial expansion, reaching an estimated valuation of $130 billion by 2030. This anticipated growth is driven by increasing health consciousness among the population and growing demand for pharmaceutical products in the country.
Furthermore, the pharmaceutical industry in India is experiencing a surge in merger and acquisition activity, characterized by historically high valuations of pharmaceutical companies. For instance, Torrent Pharma is currently in negotiations to acquire its larger competitor, Cipla, in a potential deal worth around $7 billion. If successful, this deal would represent the largest pharmaceutical transaction ever in India.
Emcure Pharmaceuticals aims to capitalize on the rising demand for pharmaceutical products in India, as well as the increasing awareness of healthcare among its citizens. The company had originally planned to go public in 2022, with ambitions to raise approximately $672 million. While it had received regulatory approval for the IPO, the decision to postpone the listing was influenced by the heightened market volatility resulting from Russia’s invasion of Ukraine.
The revival of Emcure Pharmaceuticals’ IPO plans signals its confidence in the stability of the financial markets and its readiness to tap into the growing opportunities within the pharmaceutical industry. As it moves forward with its listing preparations, the company anticipates a positive reception from investors eager to participate in India’s expanding healthcare sector.