(Adds details on India IPO market, Emcure offering)
BENGALURU, Aug 19 (Reuters) - India’s Emcure Pharmaceuticals has filed draft papers with the market regulator for an initial public offering, which a source with direct knowledge of the matter said could be worth up to 50 billion rupees ($671.89 million).
Emcure is the latest Indian company to tap capital markets this year in a fund-raising frenzy driven by abundant liquidity and record-high stock markets.
After food-delivery firm Zomato’s stellar market debut last month, Yum Brands’ largest Indian franchisee Devyani International saw strong demand for its initial share sale.
The source requested anonymity as he was not authorised to speak to media.
Emcure's offering will consist of a fresh issue of shares worth 11 billion rupees and a sale of 18.2 million shares by existing shareholders, including U.S. private equity firm Bain Capital, a filing here dated Wednesday showed.
Emcure did not immediately respond to Reuters’ request for comment.
The Pune-based drugmaker primarily manufactures active ingredients for certain treatments, biologics and vaccines. It is also involved in developing biosimilars, a generic version of a biologic.
Emcure, whose unit Gennova Biopharmaceuticals is also developing India’s first indigenous mRNA COVID-19 vaccine, said it would use the proceeds to repay debt and for general corporate purposes. The Indian government had said in April that it would fund the clinical studies of Gennova’s vaccine.
Emcure is one of the five Indian companies licensed to supply Merck & Co Inc’s anti-viral drug molnupiravir to treat mild COVID-19.
Initial share sales by peers Windlas Biotech and Glenmark Life Sciences received tepid response earlier this year. The Nifty Pharma index is about 4.5% off its record level scaled earlier this month.
Axis Capital, BofA Securities India, Credit Suisse Securities (India), JM Financial are the global coordinators and book running lead managers for the Emcure IPO and BOB Capital Markets is the book running lead manager. ($1 = 74.4170 Indian rupees) (Reporting by Chris Thomas and Shivani Singh in Bengaluru and Aditi Shah in New Delhi; Editing by Shounak Dasgupta and Subhranshu Sahu)