Akums Drugs IPO fully booked on the first day of bidding led by retail, NIIs; check GMP

Akums Drugs IPO subscription status: The initial public offering of Akums Drugs and Pharmaceuticals Ltd's retail portion has been fully subscribed within an hour of opening. The public subscription period for the issue, which has a price band of ₹646 to ₹679 per share, will begin on July 30 and end on August 1. One day before its share sale opened to the public for subscription, the company said on Monday that it had received ₹829 crore from anchor investors.

Akums Drugs and Pharmaceuticals IPO subscription status was 1.37 times. The portion for retail investors got subscribed 3.35 times and that of non-institutional investors received 1.96 times subscription. Qualified Institutional Buyers (QIBs) is booked 43%. The employee portion had been subscribed 1.07 times.

The initial share sale received bids for 2,08,08,172 shares against 1,51,62,239 shares on offer, as per BSE data.

75% of the issue size has been set aside by the firm for qualified institutional buyers, while 15% for non-institutional investors and 10% for retail investors. Investors can bid for a minimum of 22 equity shares and in multiples thereof.

Established in 2004, Akums is a contract development and manufacturing organisation (CDO) for pharmaceuticals, providing a wide variety of pharmaceutical goods and services both domestically in India and internationally.

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).

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.

Akums Drugs IPO GMP today

Akums Drugs and Pharmaceuticals IPO GMP today or grey market premium is +204. This indicates Akums Drugs share price were trading at a premium of ₹204 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 ₹883 apiece, which is 30.04% higher than the IPO price of ₹679.

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

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