Akums Drugs and Pharmaceuticals IPO: Price band set at ₹646-679 per share; check issue details, key dates, more

Akums Drugs and Pharmaceuticals IPO price band: The Akums Drugs and Pharmaceuticals Limited IPO price band has been set in the range of ₹646 to ₹679 per equity share of the face value of ₹2. The Akums Drug IPO date of subscription is scheduled for Tuesday, July 30, and will close on Thursday, August 1. The allocation to anchor investors for the Akums Drug IPO is scheduled to take place on Monday, July 29.

The floor price is 323 times the face value of the equity shares and the cap price is 339.50 times the face value of the equity shares. The Akums Drugs and Pharmaceuticals IPO lot size is 22 equity shares and in multiples of 22 equity shares thereafter.

Akums Drug IPO has reserved not more than 75% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 10% of the offer is reserved for retail investors. A discount of ₹64 per equity share is being offered to eligible employees bidding in the employee reservation portion.

Tentatively, Akums Drug IPO basis of allotment of shares will be finalised on Friday, August 2, and the company will initiate refunds on Monday, August 5, while the shares will be credited to the demat account of allottees on the same day following refund. Akums Drugs share price is likely to be listed on BSE and NSE on Tuesday, August 6.

As a pharmaceutical contract development and manufacturing organisation (CDMO), the firm provides a wide variety of pharmaceutical goods and services both domestically in India and internationally. Providing end-to-end product development and manufacturing solutions to clients is the company's major activity. As one of the top CDMOs in India, they control the intellectual property for the manufacturing processes of numerous of its formulations.

According to the red herring prospectus (RHP), the company's listed peers are Divi's Laboratories (with a P/E of 74.99), Suven Pharma (with a P/E of 69.54), Gland Pharma (with a P/E of 42.45), Torrent Pharma (with a P/E of 60.20), Alkem Laboratories (with a P/E of 34.18), Eris Lifesciences (with a P/E of 34.95), JB Chemicals (with a P/E of 51.38), Mankind Pharma (with a P/E of 44.65), and Innova Captab (with a P/E of 29.91).

Between March 31, 2024, and March 31, 2023, Akums Drugs and Pharmaceuticals Limited's profit after tax (PAT) decreased by -99.19% while its sales climbed by 13.81%.

Akums Drugs and Pharmaceuticals IPO details

Akums Drug IPO, which is worth ₹1,857 crore, comprises a fresh issue of ₹680 crore, and an offer-for-sale (OFS) of 17,330,435 equity shares by the promoters and other investors.

In the OFS, investors Ruby QC Investment Holdings Pte Ltd would be offloading 1.43 crore shares, while promoters Sanjeev and Sandeep Jain will each sell 15.12 lakh equity shares.

The net proceeds from the new issuance will be used to pay off the company's and its subsidiaries' (Pure and Cure Healthcare, Maxcure Nutravedics, and Pure) obligations. The proceeds from the IPO will also be used for inorganic growth projects and increased working capital needs.

The book running lead managers for the Akums Drugs and Pharmaceuticals IPO are ICICI Securities Ltd, Axis Bank Ltd, Citigroup Global Markets India Private Ltd, and Ambit Private Ltd. The registrar for the offering is Link Intime India Private Ltd.

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