Akums Drugs and Pharmaceuticals IPO; Pharmaceutical company IPO to begin from July 30; Key Details here

Akums Drugs & Pharmaceuticals is into Healthcare & Pharmaceuticals Pharmaceutical and is looking raise funds through Fresh Issue & Offer for Sale

Akums Drugs & PharmaceuticalsIPO: Akums Drugs and Pharmaceuticals to raise around Rs 1,857 crores through public issue IPO

Akums Drugs and Pharmaceuticals IPO is a public offering of shares by Sanjeev Jain, Sandeep Jain, and Akums Master Trust. The IPO will open on July 30 and will close on August 01. The price band is ₹646 to ₹679 per share and the lot size is 22 shares. The issue size is ₹1,856.74 crore. The shares are expected to be listed on NSE, BSE on August 06 (^). Some additional information that you may find useful are: During FY24/FY23/FY22, CDMO business share was at 78.2%/74.5%/72.5%. Branded and generic formulations business share was at 16.7%/20.7%/24.6%. API business share was at 5.1%/4.9%/3.0%. : (**) - based on higher price band (^) indicative date

Also READ: Delhi based Pharmaceutical Company Akums Drugs and Pharmaceuticals files DRHP with SEBI for the proposed IPO; Key Details here

Key Pointers of Akums Drugs and Pharmaceuticals IPO:

Promoters of the company are Sanjeev Jain, Sandeep Jain, and Akums Master Trust Currently promoters hold 82.44% stake in the company. While post-equity promoters stake will be 75.27%

Company has not undertaken Pre-IPO placement.

• Company aims to raise between Rs 1,800 to 1,857 crs through this IPO.
• The net proceeds of the issue will be utilized to 1) Repayment/prepayment of debt - Rs159.91 Cr 2) Repayment/prepayment of borrowings of Subsidiaries - Rs227.09 Cr 3) Working Capital - Rs55 Cr 4) Pursuing inorganic growth initiatives through acquisitions and 5) General corporate purposes
• Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 29-Jul-24.
• Price band for the IPO has been fixed at Rs 646 to 679 per share and bid lot are in multiple of 22 shares. The implied market cap post-issue at Rs 10,199 to 10,685 crs.
• As per the tentative schedule, allotment date of this IPO is most likely on August 02 and share are expected to be listed on NSE, BSE on August 06.
• Company has direct peer competition in India'a Pharmaceutical segment. Mainboard listed peers includes Divi's Lab, Suven Pharma, Gland Pharma, Torrent Pharma, Alkem Lab, Eris Life, JB Chemicals, Mankind Pharma, Innova Captab amongst others.
• ICICI Securities, ICICI Securities, Citigroup Global Markets India, Ambit has been appointed as Merchant Banker to the issue. Link Intime India Private Limited has been appointed as official registrar of the issue.

About Akums Drugs and Pharmaceuticals Limited

Akums Drugs and Pharmaceuticals Limited

Company is pharmaceutical contract development and manufacturing organization, providing pharmaceutical products and services both in India and internationally. Product offerings include branded pharmaceutical formulations and the manufacturing of active pharmaceutical ingredients. Additionally, company specialize in formulation research and development, regulatory dossier preparation and filing for Indian and global markets, and various testing services. Company's has manufacturing units and has received accreditations from global regulatory agencies such as the European Good Manufacturing Practice (EU-GMP), the World Health Organization (WHO) Good Manufacturing Practice, and the United States National Sanitation Foundation.

During FY24/FY23/FY22, CDMO business share was at 78.2%/74.5%/72.5%. Branded and generic formulations business share was at 16.7%/20.7%/24.6%. API business share was at 5.1%/4.9%/3.0%.

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About Industry

The pharmaceutical industry in India is characterized by significant challenges, including, high capital expenditure required to establish and maintain sizeable manufacturing units, research and development expertise, trained manpower, consistent quality control, pricing pressure, disruptions within the supply chain, and the long-drawn regulatory and client approval and inspection processes, among others. An increase in chronic patient population, insurance penetration, trade generics, demand from tier II and III cities, and Government schemes focused on drug access are supporting growth in the Indian pharmaceutical market. Contract Development and Manufacturing Organizations assist pharmaceutical companies to employ an asset-light model and access global and specialized expertise while staying abreast with rapid innovation launches.

Source: SEBI, BSE, NSE, DRHP, IPO Status, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please review DRHP or Prospectus for more details about the company, fundamentals and other details. Please visit respective sources to verify and know more details about the IPO. SME IPOs can be more volatile due to smaller market capitalization and liquidity. Prices may fluctuate significantly in response to market conditions. We advise investors to take opinion from certified and SEBI registered experts before taking any investment decisions.