Shares of Emcure Pharmaceuticals and steel wire products manufacturer Bansal Wire Industries made their strong debut on the stock exchanges on Wednesday, surpassing pre-listing expectations. The shares of Emcure Pharma listed at ₹1,325.05, up 31.45% against the initial public offering (IPO) price of ₹1,008 on the NSE, while Bansal Wire stock price debuted 39% higher at ₹356 over the issue price of ₹256. On the BSE, Emcure Pharma shares kicked-off trading at ₹1,325.05 apiece, while Bansal Wire opened higher at ₹352.05 level.
Post listing, Emcure Pharma shares gained as much as 37.3% to ₹1,384 on the BSE, while the market capitalisation rose to ₹25,550 crore. In a similar trend, Bansal Wire shares jumped 44% to hit a high of ₹368.7, while market cap increased to ₹5,365 crore.
The listings of both companies were better than Street expectations. Emcure Pharma shares commanded a grey market premium (GMP) of ₹300 apiece in the unofficial market, signaling the listing to be around ₹1,308 per share, up 29.76% over the issue price. On the other hand, the GMP of Bansal Wire shares was ₹70, projecting the listing to be around ₹326 level.
“Bansal Wire Industries surpassed pre-listing expectations with a stellar debut on the stock exchanges. The company is listed at ₹356 per share, translating to a significant 39.4% gain over its issue price of ₹256. This impressive performance outshines even the pre-listing buzz,” says Shivani Nyati, Head of Wealth, Swastika Investmart.
She adds that Bansal Wire's listing performance surpasses pre-listing expectations and signifies investor confidence in the company's potential. She recommended investors to “hold” their position with a stop-loss of ₹321.
On listing of Emcure Pharma, Nyati says the stock debut was in line with pre-listing expectations, fueled by the robust investor response. “Emcure Pharma's listing performance is positive, which aligns with pre-listing anticipation. The strong investor response and listing gain demonstrate confidence in the company's future potential. However, the identified risks within the pharmaceutical industry necessitate ongoing monitoring by investors. Investors may hold their positions by keeping a stop loss at ₹1,200.”
Prashanth Tapse, Senior VP (Research), Mehta Equities, says that Emcure Pharma debuted with strong listing gains in line with expectations along with robust demand received from all types of investors. “We believe the investor demand has come considering reasonable valuations and an opportunity to invest in the leading pharmaceutical company in India in the gynecology and HIV antiviral therapeutic areas.”
Tapse recommend allotted investors to “HOLD” the Emcure Pharmaceuticals for a long term perspective, citing its strategic focus on high-growth therapeutic areas, innovative product portfolio, successful global expansions coupled and solid R&D foundation.
On Bansal Wire Industries, Tapse says that the listing was in line with expectations. “Despite industry challenges and steady stable margin business model, management is confident in having multi-segmental growth coming in the company. We believe that the company can consistently grow its topline in line with historic trends which have grown by 18% CAGR and it can grow more in the next 1 years due to business consolidations.”
“Post listing above 38% to the issue price gives healthy opportunity to allotted investors to book profits as we had anticipated. Post listing, we see the valuations are getting stretched and upside would be limited from here,” he adds.
The Pune-based Emcure Pharma raised ₹1,952 crore via IPO route, while Ghaziabad-based Bansal Wire garnered ₹745 crore through public listing of shares on domestic exchanges. The pharma company had set the IPO price band at ₹960-1,008 per share, while Bansal Group’s company fixed the price band at ₹243-256 per share. Both the IPOs opened for subscription between July 3-5.
The IPO of Emcure Pharma was subscribed 67.87 times, led by strong response from qualified institutional buyers (QIB). The QIB portion was booked 191.24 times, followed by 49.32 times in the non-institutional investors (NII) segment, and 7.36 times in the retail category.
Meanwhile, the public issue of Bansal Wire was booked 62.76 times. The quota reserved for QIB was subscribed 153.86 times, while it was booked 54.21 times in the NII segment and 14.37 times in the retail portion.
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