The three-day initial public offering (IPO) of Emcure Pharmaceuticals and Bansal Wire Industries will open for subscription today, looking to collectively raise around ₹2,700 crore. The Pune-based Emcure Pharma aims to garner ₹1,952 crore via IPO route, while Ghaziabad-based Bansal Wire eyes to raise ₹745 crore through public listing of shares on domestic exchanges.
Ahead of the opening of the IPO, Emcure Pharma raised ₹582.6 crore via anchor book by allocating 57,79,850 equity shares at ₹1,008 per equity share, which was launched for a day on July 2. The anchor book saw participation from marquee global investors such as Abu Dhabi Investment Authority, Goldman Sachs, and Morgan Stanley as well as domestic mutual funds houses including Motilal Oswal SBI, HDFC, Axis, Kotak, Nippon Life India, ICICI Prudential, Aditya Birla Sun Life Trustee, Mirae, Franklin India, Canara Robeco, and UTI.
Similarly, Bansal Wire, the Ghaziabad-based stainless steel wire manufacturing company, has raised ₹223.5 crore through anchor investors. The company allotted 87,30,468 equity shares to anchor investors at the upper end of the IPO price band at ₹243-256 per share. The anchor book saw participation from several mutual fund houses like SBI MF, HDFC MF, Kotak Mahindra MF, Eastspring Investments, Optimix Wholesale Global Emerging Markets Share Trust, HSBC Mutual Fund, Edelweiss Trusteeship, Motilal Oswal Mutual Fund, Carmignac Portfolio, Tata Mutual Fund, DSP India, and others.
Key things to know about IPOs before they open for subscription today:
Emcure Pharma
The pharma company has set IPO price band at ₹960-1,008 per share. The three-day IPO will open for subscription on July 3 and close on July 5, while the tentative date for listing of shares on the stock exchanges is July 10, 2024.
The issue is a combination of fresh issuance of 0.79 crore equity shares worth ₹800 crore and offer for sale (OFS) of 1.14 crore shares aggregating to ₹1,152.03 crore.
The minimum lot size for an application is 14 shares, which means retail investors will have to invest ₹14,112 to buy one lot.
The company has reserved half of the issue size for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors. It has also reserved 1,08,900 equity shares for its employees who will be offered at a discount to issue price.
Incorporated in 1981, Emcure Pharmaceuticals develops, manufactures, and globally markets a wide range of pharmaceutical products across several major therapeutic areas.
Bansal Wire Industries
A flagship company of Ghaziabad-based Bansal Group, the company has fixed the price band at ₹243-256 per share for its IPO, which will close on July 5. The shares are expected to debut on July 10.
The issue is completely a fresh issue of ₹745 crore and the market capitalisation of the steel wires manufacturer post listing is pegged at ₹3,262 crore.
The company intends to use IPO proceeds for repayment of loans availed by itself and its subsidiary as well as for funding the working capital requirements of the company and meet general corporate purposes.
Formed in 1985, Bansal Wire Industries is one of the leading manufacturers of stainless steel wire. It has four manufacturing facilities in the National Capital Region (NCR), with three facilities in Ghaziabad (UP) and one facility in Bahadurgarh (Haryana). The company operates in three main segments: high carbon steel wire, low carbon steel wire (mild steel wire), and stainless steel wire. It makes over 3,000 different types of steel wire products, ranging in size from very thin to very thick, and caters to more than 5,000 customers in different industries.
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