BackOla Electric, Emcure Pharmaceuticals get SEBI nod for IPO launch
SEBI approves Ola Electric and Emcure Pharmaceuticals' IPOs. Emcure's IPO includes fresh equity issuance of ₹800 crore and OFS of 1.36 crore shares. Proceeds to pay off debt. Ola Electric expects approval for ₹5,500 crore IPO, with anchor investors showing interest.
PremiumThe Securities and Exchange Board of India (SEBI), the capital markets regulator, has approved Ola Electric's and Emcure Pharmaceuticals' initially public offerings. Both firms filed a draft red herring prospectus (DRHP) with SEBI in December 2023.
According to the latest DRHP filed last week, Emcure Pharmaceuticals IPO would consist of a fresh issuance of equity shares worth ₹800 crore and an Offer of Sale (OFS) of 1.36 crore equity shares by promoters and current shareholders.
The proceeds of the new issuance will be used to pay off debt and for other company purposes.
In the OFS, the selling shareholders are Satish Ramanlal Mehta (up to 1,730,000), Sunil Rajanikant Mehta (up to 40,000), Namita Vikas Thapar (up to 1,408,600), Pushpa Rajnikant Mehta (up to 1,150,000), Bhavana Satish Mehta (up to 531,400), Kamini Sunil Mehta (up to 125,000), BC Investments IV Ltd (up to 7,234,085), Arunkumar Purshotamlal Khanna (up to 300,000), Berjis Minoo Desai (up to 144,642), and Sonali Sanjay Mehta (up to 125,000).
The book-running lead managers for the offer are Kotak Mahindra Capital Company, Jefferies India, Axis Capital, and JP Morgan India. The equity shares are proposed to be listed on BSE and NSE.
Emcure Pharmaceuticals is a renowned Indian pharmaceutical company that develops, manufactures, and markets a wide range of pharmaceutical products across many primary therapeutic areas. The firm is a research and development ("R&D")-driven corporation with a differentiated product portfolio that comprises orals, injectables, and biotherapeutics, allowing it to access a wide variety of target markets in over 70 countries, including India, Europe, and Canada.
On June 11, Mint reported that Bhavish Aggarwal-led Ola Electric expected a formal approval for its ₹5,500 crore initial public offering from India's markets regulator.
Investors such as Singapore-based Eastspring, a subsidiary of Prudential Plc, and UK-based Pictet, had expressed interest in becoming anchor investors.
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In December, Ola Electric had filed a draft red herring prospectus (DRHP) with Sebi to raise up to ₹5,500 crore through a fresh equity issue. Additionally, it has proposed an offer for sale (OFS) of 95.12 million equity shares at a face value of ₹10. Founder and chief executive Aggarwal plans to sell the largest chunk of shares: 47.3 million, or half of the total shares offered for sale.
The filing of the draft papers coincided with Ola Electric surging past the 40% market share milestone in electric two-wheeler sales, fuelled by substantial discounts and a broad selection of competitively-priced e-scooters across price ranges. As of May, Ola remained the dominant player in India's e-two-wheeler market by volume.
Also Read: Ola Electric gets Sebi nod to launch ₹5,500 crore IPO
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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