Akums Drugs and Pharmaceuticals IPO opens today

30 Jul 2024 , 11:55 AM

The initial public offering (IPO) of Akums Drugs and Pharmaceuticals begins today, Tuesday, July 30, with a total value of ₹1,856.74 Crore.

At the time of writing on day 1 of the subscription on July 30, 2024 at 11:05 am, the IPO shows an overall subscription of 0.23 times. The Non Institutional Investors (NII) is subscribed 0.27 times, Retail Individual Investors (RII) is subscribed 0.87times.

Shares are offered in a fixed price band of ₹646-679 per share, with a lot size of 22 equity shares and multiples thereof. The IPO will be open for bidding until Thursday, August 01.

Akums Drugs and Pharmaceuticals is a contract development and manufacturing organization (CDMO) engaged in the manufacture and sale of branded drugs and active pharmaceutical ingredients (APIs).

The IPO includes a fresh share sale worth ₹680 Crore and an offer-for-sale (OFS) of up to 1,73,30,435 shares by promoters and existing shareholders. Net proceeds will be used for debt repayment/prepayment, funding working capital requirements, inorganic growth, and general corporate purposes.

75% of the net offer is reserved for qualified institutional bidders (QIBs), 15% for non-institutional investors (NIIs), and 10% for retail investors. 

Akums offers end-to-end solutions for product development, manufacturing, research and development (R&D) of formulations, regulatory dossier preparation, and other testing services.

The company manufactures a variety of dosage forms, including tablets, capsules, liquid medicines, vials, ampoules, blow-filled closures, topical preparations, eye drops, dry powder injections, and gummy bears.

Akums has produced a total of 4,025 commercialized formulations in over 60 dosage forms. In FY 2023, Akums manufactured formulations for 26 of the top 30 pharmaceutical companies in India by revenue.

The company operates 10 manufacturing units with a cumulative production capacity of 49.21 billion units annually for its CDMO business.

For the six months ending September 30, 2023, Akums reported a net loss of ₹154.75 Crore with revenue of ₹2,166.01 Crore. In FY 2022-23, the company recorded a net profit of ₹97.82 Crore with revenue of ₹3,700.93 Crore.

Shares worth ₹15 Crore are reserved for eligible employees, who will receive a discount of ₹64 per share.

ICICI Securities, Axis Bank, Citigroup Global Markets India, and Ambit are the lead managers for the IPO, with Link Intime India as the registrar. Shares will be listed on both BSE and NSE on Tuesday, August 06.