Emcure Pharma, Bansal Wire end Day 1 of listing on strong note

Emcure Pharmaceuticals Ltd and Bansal Wire Industries on Wedneday made a fabulous listing with a premium of 31 per cent and 37 per cent, respectively.

Against the IPO price of ₹1,008, the stock of the pharma major listed at ₹1,325.05 on the BSE and rose to a high of ₹1,384. However, profit taking dragged the stock to ₹1,358.85 at the end of the day, up 34.81 per cent.

Shares of Bansal Wire opened at ₹352.05, higher 37.5 per cent over the IPO price of ₹256. The stock rose further to a high of ₹368.70 and hit a low of ₹335.85, before closing at ₹350.30, a premium of 36.84 per cent.

Both the IPOs received an overwhelming response, especially from qualified institutional buyers.

The IPO of Bain Capital-backed Emcure Pharma, which came out with a price band of ₹960-1,008, was subscribed 67.87 times, while that of Bansal Wire, a 100 per cent fresh issue, 59.57 times.

Emcure Pharma hit the market with an IPO size of ₹1,952.03 crore — a fresh issue of 79 lakh shares worth ₹800 crore, and an offer-for-sale (OFS) of 1.14 crore shares totalling ₹1,152.03 crore.

Namita Thapar, one of the pharma major’s promoters, sold over 12.68 lakh shares through OFS. Other promoters, Satish Ramanlal Mehta, Sunil Rajanikant Mehta and Samit Satish Mehta offloaded part of their stake in the OFS. BC Investments IV Ltd, an affiliate of US-based private equity major Bain Capital, was also among the shares in the OFS.

As part of its IPO, Emcure Pharma raised over ₹582 crore from anchor investors. The pharma major plans to use the net proceeds to repay and/ or prepay all or part of certain outstanding borrowings and for general corporate purposes.

Bansal Wire Industries, which raised ₹745 crore through the initial public offering, came out with a price band of ₹243-256. It raised ₹223.50 crore from anchor investors. Proceeds of the IPO will be used for the payment of debt, to support the working capital requirements of the company, and for general corporate purposes.

Bansal Wire Industries is manufacturer and exporter of steel wires. It operates in three broad segments — high-carbon steel wire, mild steel wire (low-carbon steel wire), and stainless steel wire — producing a diverse range of over 3,000 wire products in various sizes. The company employs a flexible pricing strategy to manage fluctuations in material costs.

Meanwhile, according to NSE bulk deal data, Kotak Mutual Fund bought 24.62 lakh shares of newly listed company at ₹350.15 a share.