Shark Tank India’s Namita Thapar is set to make a massive 29,300% return by selling part of her stake in Emcure Pharmaceuticals’ IPO. Other key promoters, including Satish Ramanlal Mehta and Pushpa Rajnikant Mehta, will also see huge profits, with returns reaching up to 25,20,000%. The IPO, worth Rs 1,952 crore, opens on July 3 and closes on July 5.

Shark Tank’s Namita Thapar Set for Massive 29,300% IPO Windfall!

Namita Thapar, widely recognized as ‘Phar-Maa’ from Shark Tank India, is set to capitalize on a significant financial windfall by selling a portion of her stake in Emcure Pharmaceuticals through its upcoming initial public offering (IPO). The prominent investor, listed as one of the company’s promoters, is expected to reap an astounding 293-fold return on her initial investment.

Thapar currently holds 63,39,800 equity shares in Emcure Pharmaceuticals, representing a 3.5% stake. She initially acquired these shares at an average price of Rs 3.44 per share, bringing her total investment to approximately Rs 2.18 crore. As per the company’s recent advertisement, she now stands to make extraordinary gains when the shares go public.

As part of the IPO, Thapar plans to sell up to 12,68,600 equity shares in an offer-for-sale (OFS) component. Emcure Pharmaceuticals has priced its shares in the range of Rs 960 to Rs 1,008 per share, with the IPO opening on Wednesday, July 3. At the upper end of this price range, Namita Thapar is set to achieve an impressive return of 29,300%, or 293 times, on her initial stake through the OFS.

Following the sale, she will retain 50,71,200 shares in Emcure Pharmaceuticals. Based on the IPO’s upper price band, her remaining holdings will be worth around Rs 511.18 crore. The IPO, which aims to raise Rs 1,952 crore, will close on Friday, July 5, 2024.

Apart from Namita Thapar, other Emcure promoters are also poised to gain substantially. Satish Ramanlal Mehta, one of the company’s major shareholders, currently owns 7,58,16,748 shares, accounting for a 41.85% stake. He has proposed selling up to 4,20,000 shares in the OFS. With a weighted average cost of acquisition (WACA) of Rs 19.37 per share, Mehta stands to achieve an impressive 98,900% return, or 989 times his initial investment, from the share sale.

Additionally, Pushpa Rajnikant Mehta, another key promoter group member, is set to earn even higher percentage returns. Holding a 2.39% stake in Emcure Pharmaceuticals with 43,36,052 shares, she plans to sell up to 4,50,000 shares. Her WACA is just Rs 0.04 per share, making her potential profit a staggering 25,20,000% or 25,200 times her original investment.

These exceptional returns stem from the long-term holdings of these investors. Namita Thapar and Satish Ramanlal Mehta have been associated with Emcure Pharmaceuticals since its establishment in May 1982, while Pushpa Rajnikant Mehta acquired her stake in February 1994. Over the years, their holdings have been adjusted due to corporate actions such as stock splits and bonus issues, contributing to the substantial gains they stand to realize through the IPO.

Apart from individual promoters, BC Investments IV, which currently holds 2,36,73,544 shares, representing a 13.07% stake in Emcure Pharmaceuticals, is also offloading a significant portion of its holdings. The private equity firm is set to sell up to 72,34,085 shares in the OFS, making a profit of 3.63 times its initial investment.

Overall, the Emcure Pharmaceuticals IPO is generating significant interest due to the massive returns its promoters and early investors are set to achieve. While some investors, like BC Investments IV, will secure a more modest return, others, such as Pushpa Rajnikant Mehta, will see historic percentage gains. With the IPO set to open for bidding on July 3 and close on July 5, market participants are closely watching how this major public offering unfolds.