Emcure Pharma Shares Slip As Bain Capital Plans Rs 492.7 Crore Stake Sale

Emcure Pharmaceuticals Ltd.'s share price declined a day after Bain Capital, via its arm BC Investments IV Ltd., planned to sell shares worth Rs 492.7 crore in Emcure Pharma.

The firm sims to offer nearly 38 lakh shares, or 2% equity, at Rs 1,296.51 apiece, approximately 7% discount to Monday's closing price. BC Investments IV Ltd. held a 6.3% stake as of September, currently valued at Rs 1,660 crore. Kotak Securities Ltd. and Axis Capital Ltd. are the bookrunners for the deal.

The transaction is a secondary sale. The sellers will have to agree to a 90-day lock-in period for their shares.

Emure Pharma, the Pune-based pharmaceutical company, recently partnered with Novo Nordisk India to launch a weight loss injection within the country. The partnership is expected to strengthen the distribution and marketing of Poviztra, semaglutide injection 2.4 mg for weight loss, mainly through pharmacies and in regions beyond those currently served by Novo Nordisk India.

The scrip fell as much as 4.88% to Rs 1,326 apiece. It pared losses to trade 3.84% lower at Rs 1,340 apiece, as of 09:51 a.m. This compares to a 0.37% decline in the NSE Nifty 50 Index.

It has risen 2.96% in the last 12 months. Total traded volume so far in the day stood at 8.6 times its 30-day average. The relative strength index was at 56.88.

Out of six analysts tracking the company, five maintain a 'buy' rating, one recommends a 'hold', according to Bloomberg data. The average 12-month consensus price target implies an upside of 25.4%.