Akums Drugs IPO opens tomorrow: GMP, issue details, 10 key things to know

Akums Drugs and Pharmaceuticals IPO opens for subscription on tomorrow (Tuesday, July 30). This pharmaceutical contract development and manufacturing organisation (CDMO), founded in 2004, provides a wide range of pharmaceutical products and services both domestically in India and internationally.

The organisation mainly offers comprehensive solutions for product development and production, in addition to doing research and development (R&D) on formulations, preparing and submitting regulatory dossiers for both domestic and international markets, and carrying out various testing services. Additionally, the firm produces and markets branded medications and active pharmaceutical ingredients (APIs).

The business has created 4,025 marketed formulations in more than 60 dosage formats. In terms of revenue, the company produced formulations for 26 out of the top 30 pharmaceutical companies in India during the 2023 fiscal year. As of September 30, 2023, the company's 10 manufacturing facilities together have the potential to produce 49.21 billion units yearly for its CDMO division.

For its CDMO business, which is scheduled to be commissioned in FY 2025, the firm intends to install two more manufacturing units to increase its production capacity. A few of its manufacturing sites hold accreditation from international regulatory organisations, including the US National Sanitation Foundation (US NSF), the World Health Organisation (WHO-GMP), and the European Good Manufacturing Practice (EU-GMP).

Revenue at Akums Drugs and Pharmaceuticals increased by 13.81% between March 31, 2024 and March 31, 2023, but the company's profit after tax (PAT) fell by -99.19%.

Here are the 10 key things to know about Akums Drugs and Pharmaceuticals IPO:

Akums Drugs IPO date: Akums Drugs and Pharma IPO opens for subscription on Tuesday, July 30, and closes on Thursday, August 1.

Akums Drugs IPO price band: Akums Drugs and Pharmaceuticals IPO price band has been fixed in the range of ₹646 to ₹679 per equity share of face value of ₹2.

Akums Drugs IPO lot size: Akums Drugs and Pharmaceuticals IPO lot size is 22 equity shares and in multiples of 22 equity shares thereafter.

Anchor investors: The allocation to anchor investors for Akums Drugs IPO is scheduled to take place today (Monday, July 29).

Akums Drugs IPO details: The issue, 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.

Akums Drugs IPO objective: In the OFS, promoters Sanjeev and Sandeep Jain would each sell 15.12 lakh equity shares, while investors Ruby QC Investment Holdings Pte Ltd will dump 1.43 crore shares.

The company's and its subsidiaries' (Pure and Cure Healthcare, Maxcure Nutravedics, and Pure) debts will be settled with the net proceeds of the new offering. Inorganic growth initiatives and higher working capital requirements will also be funded by the IPO's revenues.

Akums Drugs IPO reservation: The company 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.

Lead Manager and Registrar of Akums Drugs IPO: ICICI Securities Ltd, Axis Bank Ltd, Citigroup Global Markets India Private Ltd, and Ambit Private Ltd are the book running lead managers for the Akums Drugs and Pharmaceuticals IPO. Link Intime India Private Ltd is the offering's registrar.

Akums Drugs IPO listing date and allotment details: Allottees' demat accounts will get credit for their shares the day after the refund, with the business initiating refunds on Monday, August 5. The Akums Drug IPO basis for share allocation is tentatively scheduled to be finalised on Friday, August 2. Akums Drugs share price is likely to be listed on BSE and NSE on Tuesday, August 6.

Akums Drugs IPO GMP today: Akums Drugs and Pharmaceuticals IPO GMP today or grey market premium is +190. This indicates Akums Drugs share price were trading at a premium of ₹190 in the grey market on Tuesday, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Akums Drugs share price was indicated at ₹869 apiece, which is 27.98% higher than the IPO price of ₹679.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.