Emcure Pharma Block Deal: Bain Capital To Offload Shares Worth Nearly Rs 500 Crore

Bain Capital, via its arm BC Investments IV Ltd., looks to sell shares worth Rs 492.7 crore in Emcure Pharmaceuticals Ltd. via block deals. according to the term sheet accessed by NDTV Profit.

The firm will 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.

As part of the agreement, Emcure Pharma will be the exclusive distributor responsible for the commercialisation and marketing of Poviztra in India.

Shares of Emcure Pharmaceuticals closed 1.33% higher at Rs 1,390 apiece on the NSE, compared to a 0.4% rise in the benchmark Nifty. The stock has risen 6.81% in the last 12 months and fallen 3.66% on a year-to-date basis.

Out of six analysts tracking the company, five have a 'buy' rating, and one recommends 'hold', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 20.8%.