Akums Drugs and Pharma IPO opens on July 30; check price band, issue size & more

The initial public offering (IPO) of Akums Drugs and Pharmaceuticals opens for bidding on Tuesday, July 30 and can be subscribed until Thursday, August 01. The pharma player will be offering its shares in the fixed price band of Rs 646-679 apiece. Investors can bid for a minimum of 22 equity shares and its multiples thereafter.
 

Akums Drugs and Pharmaceuticals, Incorporated in 2004, is a pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services in India and overseas. The company is engaged in the manufacture and sale of branded drugs and active pharmaceutical ingredients (APIs).
 

The IPO of Akums Drugs and Pharma includes a fresh share sale component of Rs 680 crore and offer-for-sale (OFS) of up to 1,73,30,435 equity shares by its promoters and existing shareholders amounting to Rs 1,176.74 crore, at the upper end of the price band. The company is looking to raise a total of Rs 1,856.74 crore via IPO.
 

The net proceeds from the issue shall be utilized towards repayment/prepayment of indebtedness of the company and its subsidiaries; funding incremental working capital requirements of the company; pursuing inorganic growth initiatives through acquisitions; and general corporate purposes. Anchor book for the issue opens for bidding on Monday, July 29.
 

Akums Drugs and Pharma provides end-to-end solutions for product development and manufacturing as well as research and development (R&D) of formulations, preparation and submission of regulatory dossiers in the Indian and global markets and other testing services.
 

Akums Drugs and Pharma manufactures a wide range of dosage forms including tablets, capsules, liquid medicines, vials, ampoules, blow-filled closures, topical preparations, eye drops, dry powder injections and gummy bears, to name a few. The company has produced a total of 4,025 commercialized formulations in over 60 dosage forms.
 

Akums Drugs and Pharma manufactured formulations for 26 of the top 30 pharmaceutical companies in India in terms of revenue in the financial year 2023. For its CDMO business, the company operates 10 manufacturing units with a cumulative production capacity of 49.21 billion units annually.
 

Akums Drugs and Pharma reported a net loss of Rs 154.75 crore with a revenue of Rs 2,166.01 crore for the six months ended on September 30, 2023. The company clocked a net profit of Rs 97.82 crore with a revenue of Rs 3,700.93 crore in the financial year 2022-23.
 

Akums Drugs and Pharma has reserved shares worth Rs 15 crore for its eligible employees, who will get a discount of 64 per share. It has reserved 75 per cent of the net for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the net offer. Remaining 10 per cent of the net offer shall be allocated towards the retail investors.
 

ICICI Securities, Axis Bank, Citigroup Global Markets India and Ambit are the book running lead managers of the Akums Drugs and Pharmaceuticals IPO, while Link Intime India is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE, with August 06, Tuesday as the tentative date of listing.