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Emcure Pharmaceuticals Limited files DRHP for an IPO

Mumbai, July 2, 2013: Emcure Pharmaceuticals Limited (the “Company” or the “Issuer”) has filed a draft red herring prospectus (the “DRHP”) with the Securities and Exchange Board of India (“SEBI”) for offering of equity shares of face value Rs. 10 each (the “Equity Shares”) for cash at a price per Equity Share including a share premium to be determined through the book building process (the “Issue”). The Issue comprises a fresh issue of Equity Shares aggregating up to Rs. 3,000 million (the “Fresh Issue”) and an offer for sale of up to 2,513,057 Equity Shares by certain existing shareholders of the Company.

In terms of Rule 19(2)(b)(ii) of the Securities Contracts (Regulation) Rules, 1957, as amended (the “SCRR”), the Issue is for at least 10% of the post-Issue capital where the post-Issue capital of the Company calculated at the Issue Price will be more than Rs. 40,000 million. Not more than 50% of the Issue shall be available for allocation on a proportionate basis to qualified institutional buyer (“QIB”) bidders; 5% of the QIB Portion (excluding anchor investor portion) shall be available for allocation on a proportionate basis to mutual funds only, and the remainder of the QIB portion shall be available for allocation on a proportionate basis to all QIBs, including mutual funds, subject to valid bids being received at or above the Issue price. Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to non-institutional bidders and not less than 35% of the Issue shall be available for allocation to retail individual bidders, subject to valid bids being received at or above the Issue price. QIBs (other than anchor investors) and non-institutional bidders shall participate in the Issue through the application supported by blocked amount (“ASBA”) process only providing the details of the bank account which will be blocked by the self certified syndicate banks to the extent of the bid amount for the same. Retail individual bidders may also participate in the Issue through the ASBA process.

The Equity Shares offered in the Issue are proposed to be listed on BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”).

The book running lead managers to the Issue are DSP Merrill Lynch Limited, IDFC Capital Limited and Morgan Stanley India Company Private Limited.

The Company is a fast growing Indian pharmaceutical company engaged in developing, manufacturing and marketing a broad range of pharmaceutical products globally. Its core strength lies in in-house development and manufacturing of differentiated pharmaceutical products. The Company focuses its research and development efforts on developing a portfolio of differentiated products across several platforms, including chiral molecules, biosimilars and novel drug delivery systems. The Company commercializes its products through a combination of its own marketing and distribution infrastructure across geographies as well as relationships with multi-national pharmaceutical companies.

The Company believes its competitive advantage in the domestic market lies in its established presence in all major therapeutic areas. It has a pan India marketing and distribution presence with a field force of more than 4,800 personnel, as of March 31, 2013. The Company has a well-diversified income base in terms of geographies, therapeutic areas and business segments within the pharmaceutical industry. The Company has its own sales and marketing infrastructure in the United States through its subsidiary, Heritage. The Company also sells its portfolio of branded generic products to the rest of world. Its products are currently shipped to over 65 countries, where it has established its presence by focusing on important alliances with local and multi-national companies. The Company has subsidiaries in Brazil, Dubai, Nigeria, Singapore and South Africa and branch offices in Morocco and Russia, which play an important role in its international operations. It operates nine manufacturing facilities, eight of which are located in India and one in the United States. Several of these facilities have approvals from various regulatory bodies, including the USFDA and the UK-MHRA. These facilities are capable of producing APIs and pharmaceutical products encompassing a wide range of dosage forms including oral solids, oral liquids, soft gelatin capsules and injectables (both liquid and lyophilized). The manufacturing capability of the Company allows it to manufacture complex products, including cytotoxic products. The Company also manufactures products for certain pharmaceutical multi-national companies and the Company believes that it has emerged as a technologically dependable and quality conscious company of choice for these companies. The Company is led by highly qualified and experienced management team and the board of directors.

Disclaimer: Emcure Pharmaceuticals Limited (the “Company”) is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its equity shares comprising a fresh issue and an offer for sale by certain existing shareholders of the Company and has filed a draft red herring prospectus ("DRHP") with the Securities and Exchange Board of India ("SEBI"). The DRHP is available on the website of SEBI at www.sebi.gov.in; on the websites of the stock exchanges at www.nseindia.com and www.bseindia.com; and on the respective websites of the book running lead managers at www.dspml.com, www.idfccapital.com and www.morganstanley.com/indiaofferdocuments.

Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section "Risk Factors" of the Draft Red Herring Prospectus. Potential investors should not rely on the DRHP for any investment decision. The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other jurisdiction outside India and may not be offered or sold, and Bids may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction. The Equity Shares have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold (i) within the United States to U.S. QIBs in reliance on Rule 144A under the Securities Act and (ii) outside the United States in reliance on Regulation S under the Securities Act.


For further details contact: Aryan Rana, Adfactors PR, Ph: +91 9930372436/ 09820531932; E-mail: aryan.rana@adfactorspr.com

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