Bain-backed Emcure Pharma withdraws IPO

The Pune-based firm initially filed draft prospectus with the Securities and Exchange Board of India (SEBI) in June last year. The proposed IPO comprised of a fresh issue of shares worth INR3 billion and an offer to sell around 2.51 million equity shares. Bank of America Merrill Lynch, IDFC Capital and Morgan Stanley were managing the proposed issue when it was withdrawn on June 6.

Emcure is engaged in developing, manufacturing and marketing a broad range of pharmaceutical products globally. It has nine manufacturing facilities, eight of which are in India and one in the US.

The proceeds of the IPO would have been used to set up new manufacturing facilities and expand existing ones. Extra capital would have also gone towards research and development and general corporate purposes.

According to AVCJ Research, Blackstone Group invested $50 million in the company in 2006 in return for 13% stake. It then exited its stake to Bain Capital for around $105 million in December last year.

Emcure is not means alone, three other PE backed firms have withdrawn IPO plans in India this year: BSCPL Infrastructure's March IPO would have provided an exit for New Vernon Private Equity but was cancelled in February; Trimax IT Infrastructure and Services, which is backed by Zephyr Peacock India, scrapped its IPO in March; and GMR Energy - which is backed by a consortium of private equity investors including Singapore sovereign wealth fund Temasek Holdings and IDFC Alternatives - withdrew its listing plans in April.

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• Topics
• South Asia
• Healthcare
• Exits
• Exit
• India
• Pharmaceuticals
• IPO
• Bain Capital Asia