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Emcure Pharma and Bansal Wire IPOs witness exceptional demand

The initial public offerings of Emcure Pharmaceuticals Ltd and Bansal Wire Industries received an overwhelming response, especially from qualified institutional buyers  on the last day.

The IPO of Bain Capital-backed Emcure Pharma which came out with a price band of ₹960-1,008, was subscribed 67.87 times, while that of Bansal Wire, a 100 per cent fresh issue, was subscribed 59.57 times.

Emcure Pharma hit the market with an IPO size of ₹1,952.03 crore – a fresh issue of 79 lakh shares worth ₹800 crore and an offer-for-sale (OFS) of 1.14 crore shares totalling  ₹1,152.03 crore.

Namita Thapar, one of the pharma major’s promoters, sold over 12.68 lakh shares through offer-for-sale (OFS). Other promoters, Satish Ramanlal Mehta, Sunil Rajanikant Mehta and Samit Satish Mehta offloaded part of their stake in the OFS. BC Investments IV Ltd, an affiliate of US-based private equity major Bain Capital, was also among the shares in the OFS.

The quota reserved for QIBs was subscribed 195.83 times, non-institutional investors 48.32 times, retail investors  7.21 times, and employees 8.81 times.

As part of its IPO, Emcure Pharmaceuticals on Tuesday raised over ₹582 crore from 48 anchor investors by allotting 57,79,850 shares at ₹1,008 a share. The pharmaceutical company plans to use the net proceeds to repay and/ or prepayall or part of certain outstanding borrowings and for general corporate purposes.

Incorporated in 1981, Emcure develops, manufactures, and markets pharmaceutical products. Operating 13 manufacturing facilities in India, the company has a market presence in more than 70 countries.

Bansal Wire Industries which raised ₹745 crore through the initial public offering, in came out with a price band of ₹243-256. The QIBs, who remained lukewarm in the first days, stepped up their bidding on the last day, as their quota was subscribed 146 times. The portion reserved for HNIs saw aggressive bidding of 51.46 times, followed by retail investors at 13.64 times.

Bansal Wire on Tuesday raised ₹223.50 crore from anchor investors by allocating 87.30 lakh shares to 18 funds at ₹256 apiece. Proeeds of the IPO will be used for the payment of debt, to support the working capital requirements of the company, and for general corporate purposes.

Bansal Wire Industries is manufacturer and exporter of steel wires. It operates in three broad segments — high-carbon steel wire, mild steel wire (low-carbon steel wire), and stainless steel wire — producing a diverse range of over 3,000 wire products in various sizes. The company employs a flexible pricing strategy to manage fluctuations in material costs.


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