Akums Drugs shares climb 65% in 9 sessions! BSE, NSE seek clarification on stock price movement

The recent stock market debutant Akums Drugs and Pharmaceuticals Ltd, whose shares are up 65 per cent over the IPO issue price of Rs 679, is in focus today after stock exchanges BSE and NSE sought clarification, with reference to the significant price movement on the counter.

A pharmaceutical contract development and manufacturing organization (CDMO), Akums Drugs and Pharmaceuticals offers a wide range of pharma products and services in India and overseas. It is engaged in the manufacture and sale of branded drugs and active pharmaceutical ingredients (APIs).

BSE on August 20 said the clarification is being sought in a bid to ensure that stock investors have latest relevant information about the company and to inform the market so that the interest of the investors is safeguarded. On Monday, the stock was locked at its 5 per cent upper circuit limit at Rs 1,118.95 on BSE.

Earlier, on August 19, NSE said a significant movement in price has been observed in Akums Drugs and Pharmaceuticals Limited. "The exchange, in order to ensure that investors have latest relevant information about the company and to inform the market place so that the interest of the investors is safeguarded, has written to the company. The response from the company is awaited," it said.

Akum Drugs & Pharmaceuticals had on August 6 got listed at Rs 725 apiece on NSE, up 6.77 per cent over its issue price of Rs 679. Its IPO ran from July 30 and August 1. The company had sold its shares in the price band of Rs 646-679 per share. The IPO raised a total of Rs 1,856.74 crore, which included a fresh share sale of up to Rs 680 crore and an offer-for-sale (OFS) up to 1,73,30,435 equity shares.