Akums Drugs and Pharmaceuticals Limited

About Akums Drugs and Pharmaceuticals Limited  Incorporated in 2004, Akums Drugs and Pharmaceuticals Limited is one of India's largest CDMOs (Contract Development and Manufacturing Organisation). It offers pharmaceutical products such as tablets, capsules, liquid orals, vials, ampoules, blow-filled seals, topical preparations, along with other pharma products  It also offers services such as formulation research and development, preparation and filing of regulatory dossiers in the Indian and global markets, other testing services, and manufacturing and sale of branded pharmaceutical formulations and active pharmaceutical ingredients.  Since its inception, it has manufactured 4,146 commercialised formulations across over 60 dosage forms. These products are prepared at its 10 manufacturing units, which are accredited by regulatory agencies such as the European Good Manufacturing Practice (EU-GMP), the WHO-GMP, and the United States National Sanitation Foundation (US NSF). It also operates four R&D units with a team of 406 R&D scientists.  The company sells its products to companies in India and abroad. In FY24, it manufactured formulations for 26 of the leading 30 pharmaceutical companies in India, including Alkem Laboratories, Cipla, Dabur India, Dr. Reddy’s Laboratories, Mankind Pharma, MedPlus Health Services, Micro Labs, and more.  It also has clients in 65 other countries, such as Allegens (Vietnam), Ambica International (Philippines), Caferma SAC (Peru), JDS (Myanmar), Master Pharma (Cambodia), Olainfarm (Latvia), Pharma Apex (Myanmar), Planet Pharmaceutical (Tanzania), and Unisel (Kenya), among others as of 31 March 2024.  The company’s subsidiaries, Akumentis and Unosource, operate its domestic and international businesses, respectively. It also operates a domestic marketing and distribution network of medical representatives, field managers, distributors, and retailers and sold over 140 brands as of March 31, 2024.  In 2021, it acquired Akums Lifesciences Limited (formerly Parabolics Drugs Limited), along with its manufacturing units in Dera Bassi and Lalru in Punjab and Barwala in Haryana and an R&D centre in Barwala, Haryana.  Between FY22 and FY24, Akums Drugs saw a 4% CAGR growth in its revenue from operations. Moreover, the Indian domestic CDMO market is forecasted to grow at a 14% CAGR between FY24 and FY28 to reach $2.8 billion, which could benefit the company.  And now, Akums Drugs and Pharmaceuticals Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹1,856.74 crore, comprising fresh issue, aggregating to ₹680.00 crore, as well as an offer for sale, aggregating to ₹1,176.74 crore. The money raised from the fresh issue will be utilised to fund incremental working capital requirements, repay indebtedness, pursue inorganic growth, and for general corporate purposes. Its shares will be listed on the NSE and BSE.  Here are key details about the Akums Drugs and Pharmaceuticals IPO:     Company Name  Akums Drugs and Pharmaceuticals Limited Limited   Company Type  Private    Company Established On  2004   Akums Drugs and Pharmaceuticals Limited IPO Opening Date  30th July 2024    Akums Drugs and Pharmaceuticals Limited IPO Closing Date  1st August 2024   Akums Drugs and Pharmaceuticals Limited IPO Allotment Status  2nd August 2024    Credit of Shares to the Demat Account  5th August 2024   Akums Drugs and Pharmaceuticals Limited IPO Listing Date  6th August 2024    Akums Drugs and Pharmaceuticals Limited IPO Face Value  ₹ 2 per share   Akums Drugs and Pharmaceuticals Limited IPO Lot Size  22 shares    Akums Drugs and Pharmaceuticals Limited IPO Issue Size  Approx ₹ 1,856 crore   Akums Drugs and Pharmaceuticals Limited IPO to be Listed on  BSE, NSE    Akums Drugs and Pharmaceuticals Limited IPO Price band  ₹ 646 – ₹ 679 per share        Financial snapshot     Particulars  FY22  FY23  FY24    Revenue  ₹ 3,671 crore  ₹ 3,654 crore  ₹ 4,178 crore    Net Profit/Loss  ₹ -250.8 crore  ₹ 97.8 crore  ₹ 0.79 crore              Here’s a quick look at Akums Drugs and Pharmaceuticals Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Largest India-focused CDMO in terms of revenue, production capacity and clients in FY23, with a market share of 30% by value in the Indian domestic CDMO market as of FY24.  As of 31 March 2024, the diverse client base comprises 1,524 Indian and multinational pharmaceutical and wellness companies.  Longstanding relationship with clients with repeat orders from 38 of its 50 largest clients in the last five years as of FY24.  Large R&D capabilities with 1,448 trademarks across various dosage forms and formulations, 927 DCGI approvals, and five patents as of 31 March 2024. It has also received approval for 923 formulations from FSSAI.  Strategic presence across 65 countries in the globe with 289 dossiers under registration as of FY24.   Risks and threats   Exposed to economic, regulatory, political, or other risks related to the geographical concentration of its manufacturing facilities in Uttarakhand.  Some of its raw materials are imported from China, and so do its domestic suppliers, which may be disrupted by the imposition of new rules, regulations, or directives.  Incurred a loss of ₹250 crore in FY22 pertaining to fair value changes to financial instruments of ₹494 crore in FY22.  Has consistently experienced negative cash flows from investing activities in the last three financial years.  Operates in a market subjected to extensive regulation and requires compliance with the Air Act, the Water Act, the waste management legislation, the Hazardous Waste Rules, the E-waste Rules, and the BioMedical Waste Management Rules, 2016, amongst other things.            Akums Drugs and Pharmaceuticals Limited IPO details  | Akums Drugs and Pharmaceuticals Limited IPO date  According to the offer document filed by the company with the SEBI, the Akums Drugs and Pharmaceuticals IPO’s opening date—in other words, the Akums Drugs and Pharmaceuticals IPO launch date—will be 30 July 2024. The Akums Drugs and Pharmaceuticals IPO closing date is 1 August 2024. After this, investors will be updated about the allotment status on 2 August 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 5th August 2024. The Akums Drugs and Pharmaceuticals IPO listing date is 6th August 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  | Akums Drugs and Pharmaceuticals Limited IPO Price Band  The IPO is a fresh issue and an offer for sale. The Akums Drugs and Pharmaceuticals IPO price band has been set between ₹646 and ₹679 per share. Interested investors can choose a price within this band to apply for the IPO.  The Akums Drugs and Pharmaceuticals IPO listing price will be determined on 6th August 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Akums Drugs and Pharmaceuticals Limited IPO Lot size  The Akums Drugs and Pharmaceuticals IPO details have been declared. The Akums Drugs and Pharmaceuticals IPO lot size is set at 22 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Akums Drugs and Pharmaceuticals IPO issue size is approx ₹1,856 crore.           How to pre-apply for the Akums Drugs and Pharmaceuticals Limited IPO?  You can pre-apply for the Akums Drugs and Pharmaceuticals Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Akums Drugs and Pharmaceuticals Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Akums Drugs and Pharmaceuticals Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Akums Drugs and Pharmaceuticals Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Akums Drugs and Pharmaceuticals Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Akums Drugs and Pharmaceuticals Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Akums Drugs and Pharmaceuticals Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Akums Drugs and Pharmaceuticals Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Akums Drugs and Pharmaceuticals Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Akums Drugs and Pharmaceuticals Limited IPO  To apply for the Akums Drugs and Pharmaceuticals Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Akums Drugs and Pharmaceuticals Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Akums Drugs and Pharmaceuticals Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.