Akums Drugs and Pharmaceuticals is going to open its IPO for subscription on July 30. The price band has been fixed at INR 646-679 per share. The IPO, which runs until August 1, has a fresh issuance of shares aggregating to INR 680 crore and an OFS of 1.73 crore equity shares by selling shareholders. Anchor bidding will be open for a day on July 29 ahead of the public subscription period.
At the upper price band the, the valuation of OFS shall be INR 1175 Cr, for 1.73 Cr Shares, which makes IPO size to INR 1857 Cr.
Promoter and Shareholder Participation
Under the OFS, promoters Sanjeev Jain and Sandeep Jain would sell 15.12 lakh equity shares each. Besides, investor Ruby QC Investment Holdings Pte Ltd would sell 1.43 crore shares. Ruby QC’s weighted average cost of acquisition was INR 231.64 per share. Promoters currently hold an 82.44 per cent stake in the company, while Ruby QC Investment holds 14.65 per cent, and the remaining 2.91 per cent shares are with employee trusts.
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Share Allocation and Reservations
The IPO also reserves shares worth INR 15 crore for its employees and the net issue, after excluding the employee portion, is allocated as follows: 75 per cent for qualified institutional buyers, 15 per cent for non-institutional investors, and 10 per cent for retail investors. Finalisation of allotments would happen on August 2; refunds would be initiated on and equity shares would be credited on August 5, and listing of the company is expected to happen on August 6 on the exchanges.
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Operational Capacity and Future Expansion
The company has 10 manufacturing units with a cumulative formulation manufacturing capacity of 49.23 billion units per annum as of FY24. Akums would also operationalise a new injectable facility in FY25 that would not only increase its production capacity but also better equip it to meet growing market demand.
The IPO is being managed by ICICI Securities, Axis Capital, Citigroup Global Markets India, and Ambit as the book-running lead managers, with Link Intime India as the registrar to the offer.
About Akums
Akums Drugs and Pharmaceuticals was founded in 2004 and is the largest Indian-focused CDMO by revenue, production capacity, and clients served for FY23. The value market share of Akums Drugs and Pharmaceuticals in the Indian domestic CDMO marketplace stood at 30.2% in the fiscal year 2024. The Indian CDMO market size is expected to grow at a CAGR of 14.3% throughout FY24 to FY28 and likely to be $2.8 billion by FY28.
About the Author
Ms Akshita Siddhapura is a Business Analytics student at SCMS-B, passionate about finance and research. She has a keen interest in financial analysis and strategic growth, showing a strong commitment to business and finance.
