Namita Thapar, one of the judges of the famous TV show Shark Tank India will be partially offloading her stake in Emcure Pharmaceuticals. She’ll be selling almost 1.28 million shares in the IPO, earning a return of over 290 times on the initial invested value. Emcure Pharmaceuticals’ IPO will open for bidding on July 03. The return is calculated on the basis of the value derived at the upper end of the price band.
The exact number of shares on sale is 1,268,600 and this will yield a return of Rs 128 crore, if multiplied by the upper end of the price band of the issue of Rs 1008. This is approximately a little over 290 times the invested value. The promoter acquired these shares at a weighted average price of Rs 3.44 per equity share, aggregating her total investment in the company to Rs 43.64 lakh.
Namita Thapar partially offloading stake
Thapar owns a total of 6,339,800 shares of Emcure Pharmaceuticals. Or, it can be said she owns 3.5% of the total equity shares of the company, before diluting her stake in IPO, according to the papers filled with the markets’ regulator.
The promoters and other selling shareholders will be offloading 11.4 million shares to collect a sum of Rs 1,152.03 crore.
While the IPO offers 7.9 million fresh shares of the company for a value of Rs 800 crore. The raised proceeds will be used to pay outstanding borrowings and other general corporate purposes, as per the papers filed with SEBI.
Bain Capital’s paring stake
Along with Thapar, BC Investments IV Limited (a private equity investment firm), an affiliate of US-based private equity player Bain Capital, will also be selling some part of its stake in the company. As of now, it owns 23.67 million shares or 13.07% equity of the company. Out of this, BC Investments IV will be selling 7.23 million shares. At the upper price band, the investment fund will collect Rs 729.2 crore.
Employee Reservation
In the IPO, an employee reservation of up to 108,900 equity shares has been kept aside for the allocation only to eligible employees bidding in the employee reservation portion.
The other promoters selling their shareholdings are Satish Ramanlal Mehta, Sunil Rajanikant Mehta, and Samit Satish Mehta.
