Akums Drugs and Pharmaceuticals IPO opens on July 30: 5 key points to know

Akums Drugs and Pharmaceuticals Limited IPO subscription will open on July 30. The ₹1,856.74 crore book-building issue, which will conclude on August 1, has set the price band at ₹646 to ₹679 per share.

The mainboard initial public offer (IPO) is a combination of a fresh issue of 1 crore shares aggregating to ₹680 crore and an offer for sale of 1.73 crore shares amounting to ₹1,176.74 crore.

The promoters of the company, Sanjeev Jain, Sandeep Jain, and Akums Master Trust, hold 84.94% stake in the company before the issue.

Ahead of the opening of the subscription window, here are key details to know things to know about the IPO.

Akums Drugs and Pharma IPO details

The pharmaceutical company has reserved 75% of the net issue for qualified institutional buyers (QIBs) and 10% of the net issue for retail investors. The remaining 15% of the net issue has been set aside for non-institutional investors (NIIs).

Akums Drugs and Pharma IPO: Lot size and minimum investment

Akums Drugs and Pharmaceuticals IPO price band has been fixed at ₹646 to ₹679 per share. Retail investors interested in applying for the public issue can place bids for a minimum of 1 lot comprising 22 shares, which aggregates to an investment of ₹14,938.

Small Non-Institutional Investors (sNII) can place bids for a minimum of 14 lots or 308 shares, which translates to an investment of ₹2,09,132. Big Non-Institutional Investors (b-NII) can place bids for a minimum of 67 lots or 1,474 shares, amounting to ₹10,00,846.

Akums Drugs and Pharma IPO subscription, allotment status and listing date

Akums Drugs and Pharmaceuticals IPO subscription window will open on Tuesday, July 30, and will close on Thursday, August 1. The allotment of shares is likely to be finalised on Friday, August 2. After the allotment of shares is finalised, refunds will be initiated for unsuccessful bidders on Monday, August 5, and successful bidders will receive shares of Akums Drugs and Pharmaceuticals in their Demat accounts the same day.

Akums Drugs and Pharmaceuticals shares will be listed on the NSE and BSE. The tentative listing date for the IPO is August 6.

Akums Drugs and Pharma IPO objective

The company plans to use the money raised via the public issue for repayment or prepayment of debt. The company also plans to use the money raised to fund incremental working capital requirements and inorganic growth initiatives through acquisitions.

Akums Drugs and Pharma key financials and competitors

Akums Drugs and Pharmaceuticals’ revenue grew nearly 14% to ₹4,212.21 crore in FY24 compared to ₹3,700.93 crore in FY23. The company’s profit-after-tax declined nearly 99.1% to ₹79 lakh in FY24 compared to ₹97.82 crore in FY23. The pharma company’s net worth fell 1% to ₹709.5 crore compared to ₹717.19 crore in FY23.

Akums is among the largest domestic market-focused Indian Contract Development and Manufacturing Organisations (CDMOs) on a revenue basis. The company had a market share of 9.3% by value in FY23 in the total addressable Indian domestic CDMO market and 8.8% by volume in the total Indian Pharmaceutical Market in FY23. In the Indian domestic CDMO market, Akums had a market share of 29.4% by value in FY23.

The company’s primary competitors are other contract manufacturers who provide outsourcing services for the production of pharmaceutical and nutraceutical products. Tirupati Medicare and Innova Captab Ltd are the company’s key competitors.

About the company

Akums Drugs and Pharmaceuticals Limited, established in 2004, is a contract development and manufacturing organisation (CDMO) for the pharmaceutical industry. The company offers a diverse range of products and services in India and overseas.

It provides end-to-end solutions for product development and manufacturing as well as research and development (R&D) of formulations and other such services. The company also manufactures and sells branded drugs and active pharmaceutical ingredients (APIs).

The pharma major operates 10 manufacturing units with a cumulative production capacity of 49.21 billion units annually as of September 30, 2023). The company plans to expand its production capacity with two additional production units for its CDMO business to be commissioned in FY 2025. Its employee headcount stood at 16,463, including 7,211 full-time employees and 9,252 contract employees, as of September 2023.