Emcure, Bansal Wire IPOs to raise Rs 2,700 crore, issues open July 3

Bain entered the Pune firm in 2014 through its arm BC Investments, with an investment of around Rs 675 crore, Mehta told TNIE here Friday.
Emcure, Bansal Wire IPOs to raise Rs 2,700 crore
Emcure, Bansal Wire IPOs to raise Rs 2,700 crore

MUMBAI: Two companies from diverse sectors—the pharma major Emcure Pharmaceuticals and the steel wire major, Bansal Wire Industries have announced IPOs worth around Rs 2,700 crore, which will open on July 3.

The Rs 1952-crore issue from the Pune-based Emcure, which is the 13th largest domestic pharma company in terms of sales, and the largest player in the gynaecological drugs with close to 14 per cent market share, consists of Rs 800 crore of fresh issue and Rs 1,152 crore in offer for sale.

the OFS will see the promoters led by founder and managing director Satish Mehta selling around 1.7 per cent, while the external investor Bain Capital divesting 4 per cent of its 13 per cent holding.

Bain entered the Pune firm in 2014 through its arm BC Investments, with an investment of around Rs 675 crore, Mehta told TNIE here Friday.

The Rs 745-crore issue from the Noida-based Bansal Wire is only a fresh issue, as the company is fully owned by the promoter family.

Both issues will open on July 3 and close on the 5th.

While Emcure has set the price band at Rs 960-1008, Bansal Wire has fixed it at Rs 243-256 per share.

Emcure, established in 1989 had revenue of Rs 6,658 crore in FY24 from which it had earned 19 percent in net margins. Emcure is the first pharma IPO after the highly successful issue by Delhi-based Mankind in May 2022 and initially, the company was planning a Rs 5,000 crore issue in January 2023. However, following a court case in the US, the issue was delayed.

Emcure proposes to utilise the Rs 600 crore of the fresh issue proceeds to part-pay of Rs 2,000 crore of which Rs 1,500 crore is net debt and general corporate purposes.

Bansal Wire, which is the second largest steel wires maker after Tata Steel and the largest manufacturer of stainless wires in the country, had a revenue of Rs 2,400 crore in FY24 from which it earned Rs 75 crore of net income.

It operates four plants in Dadri near Noida with a capacity of 2.5 lakh tonne and is building a new one for stainless wires with a capacity of 3.5 lakh tone per annum, in Dadri, which on full commission will be the largest such facility in Asia, Pranav Bansal, the managing director told TNIE here.

Bansal Wire proposes to utilise net proceeds from fresh issues for part-payment of borrowings of Rs 452.7 crore, funding the working capital requirements of Rs 60 crore and general corporate purposes.

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