Bain to sell Emcure stake for $200 million in block deal: report

Bain Capital is planning to sell its stake in Emcure Pharmaceuticals Ltd through a significant block deal, Mint reported, citing two people in the know.

The decision comes after the mandatory lock-in period for share sale ended last month.

The global private equity firm, which is likely to sell stake worth about $200 million (about Rs1,700 crore), has reportedly appointed investment bank Kotak Mahindra Capital Co. to help it with the deal.

It is mandatory for certain investor categories, including anchor and pre-listing investors, to hold the shares for a lock-in period, according to Indian market regulations.

Details of the transaction have not been disclosed.

Bain Capital’s move to sell its stake in Emcure comes amid the pharma company’s continued financial growth and expanding market reach.

BC Investments IV Ltd, the entity through which Bain made its investment in Emcure, held about 8.68% of the company’s shares, or about 16.5 million shares, as of December, according to stock exchange records.

Based on the stock’s closing price on Friday, the stake is valued at around Rs1,773.75 crore.

Emcure Pharmaceuticals was founded by Satish Ramanlal Mehta in 1981 and went public on 10 July 2024. Its shares started trading at Rs1,325.05 per share, 31.45% higher than the issue price of Rs1,008.

The Pune-based company manufactures and sells a variety of medicines, including injectables, biotherapeutics, and oral drugs, in over 70 countries. It has a strong presence in India, Canada, and Europe.

For the quarter ending December 2024, Emcure’s net profit rose 30.3% year-on-year to Rs156 crore, up from Rs119.7 crore a year ago. Revenue rose 17.7% to Rs1,962.6 crore against Rs1,667.6 crore in Q3FY24.