Akums Drugs and Pharmaceuticals IPO Opens for Subscription on July 30
The much-anticipated Akums Drugs and Pharmaceuticals IPO is set to open for subscription on Tuesday, July 30. This pharmaceutical contract development and manufacturing organization (CDMO), established in 2004, has a diverse portfolio of pharmaceutical products and services offered both in India and internationally. The company’s extensive capabilities include product development, production, research and development (R&D) on formulations, regulatory dossier preparation, and a variety of testing services. Additionally, Akums produces and markets branded medications and active pharmaceutical ingredients (APIs).
Comprehensive Pharmaceutical Solutions
Akums Drugs and Pharmaceuticals has developed 4,025 marketed formulations across more than 60 dosage formats. In the fiscal year 2023, the company produced formulations for 26 of the top 30 pharmaceutical companies in India. As of September 30, 2023, Akums’ 10 manufacturing facilities have a combined production capacity of 49.21 billion units annually for its CDMO division.
To further expand its production capacity, Akums plans to commission two additional manufacturing units by FY 2025. Several of its manufacturing sites are accredited by international regulatory organizations, including the US National Sanitation Foundation (US NSF), the World Health Organization (WHO-GMP), and the European Good Manufacturing Practice (EU-GMP). Despite a 13.81% increase in revenue between March 31, 2024, and March 31, 2023, the company’s profit after tax (PAT) fell by -99.19%.
Key Details of Akums Drugs IPO
Here are the ten key things to know about the Akums Drugs and Pharmaceuticals IPO:
1. Akums Drugs IPO Date
The IPO opens for subscription on Tuesday, July 30, and closes on Thursday, August 1.
2. Akums Drugs IPO Price Band
The price band has been set between ₹646 to ₹679 per equity share with a face value of ₹2.
3. Akums Drugs IPO Lot Size
Investors can bid for a minimum of 22 equity shares and in multiples of 22 thereafter.
4. Anchor Investors
The allocation to anchor investors is scheduled to take place on Monday, July 29.
5. Akums Drugs IPO Details
The IPO comprises a fresh issue of ₹680 crore and an offer-for-sale (OFS) of 17,330,435 equity shares by the promoters and other investors, totaling ₹1,857 crore.
6. Akums Drugs IPO Objective
The funds raised from this new offering will be allocated to clearing the company’s debts and those of its subsidiaries, including Pure and Cure Healthcare, Maxcure Nutravedics, and Pure. Additionally, the proceeds will support inorganic growth initiatives and address the increased working capital needs. In the Offer for Sale (OFS), promoters Sanjeev and Sandeep Jain will each divest 15.12 lakh equity shares, while Ruby QC Investment Holdings Pte Ltd will sell 1.43 crore shares.
7. Akums Drugs IPO Reservation
The company has reserved 75% of the shares for qualified institutional buyers (QIB), 15% for non-institutional investors (NII), and 10% for retail investors. Eligible employees bidding in the employee reservation portion are offered a discount of ₹64 per equity share.
8. Lead Manager and Registrar
The book-running lead managers for the offering are ICICI Securities Ltd, Axis Bank Ltd, Citigroup Global Markets India Private Ltd, and Ambit Private Ltd. Link Intime India Private Ltd will serve as the registrar.
9. Akums Drugs IPO Listing Date and Allotment Details
Allottees will receive shares in their demat accounts the day after the refund, with refunds initiated on Monday, August 5. The basis for share allocation is tentatively scheduled for Friday, August 2, with the listing likely on BSE and NSE on Tuesday, August 6.
10. Akums Drugs IPO GMP Today
The grey market premium (GMP) is currently +190, indicating a trading premium of ₹190 over the issue price. Considering the upper end of the price band, the estimated listing price is ₹869 per share, a 27.98% increase over the IPO price of ₹679. The GMP indicates the extent to which investors are prepared to pay above the issue price.
Akums Drugs and Pharmaceuticals is well-positioned for growth with its robust production capabilities, international accreditations, and strategic expansion plans. The IPO offers a significant opportunity for investors looking to capitalize on the pharmaceutical sector’s growth.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of OSTP Media. We advise investors to check with certified experts before making any investment decisions.
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