Akums Drugs and Pharmaceuticals IPO will open for subscription from 30 July 2024. The company aims for an issue size of ₹1,856.74 Cr through this IPO.
Company Overview
| Full name | Akums Drugs and Pharmaceuticals Limited |
| Sector | Healthcare |
| Industry | Pharmaceuticals & Drugs |
| Company Website | https://www.akums.in/ |
About Company
Founded in 2004, Akums Drugs and Pharmaceuticals has emerged as a prominent player in the pharmaceutical contract development and manufacturing (CDMO) sector, offering an extensive array of pharmaceutical products and services in India and internationally. Distinguished as one of India’s leading CDMOs, Akums holds intellectual property for numerous manufacturing processes for its formulations.
The company has manufactured 4,146 commercialized formulations across over 60 dosage forms. The company manufactured formulations for 26 of the leading 30 pharmaceutical companies in terms of sales in India. The CDMO business, operates 10 manufacturing units, with a cumulative formulations manufacturing capacity of 49.23 billion units annually, as of 31 March 2024.
The company has presence in 60 countries worldwide such as Vietnam, Philippines, Peru, Myanmar, Cambodia, Latvia, Myanmar, Tanzania, and Kenya, among others. As of 31 March 2024, key clients for the CDMO business include Alembic Pharmaceuticals, Alkem Laboratories, Cipla, Dabur India, Dr. Reddy’s Laboratories, Mankind Pharma, MedPlus Health Services, Natco Pharma, Sun Pharmaceutical Industries, and Amishi Consumer Technologies (The Mom’s Co), among others.
The Objectives of the Issue
- Repayment/ prepayment of indebtedness of the company and its Subsidiaries;
- Funding incremental working capital requirements of the company;
- Pursuing inorganic growth initiatives through acquisitions; and
- General corporate purposes.
Akums Drugs and Pharmaceuticals IPO Timetable
| IPO Opening date | 30 July 2024 |
| IPO Closing | 01 August 2024 |
| Basis of Allotment | 02 August 2024 |
| Initiation Refund | 05 August 2024 |
| Credit to Demat Account | 05 August 2024 |
| Listing Date | 06 August 2024 |
Akums Drugs and Pharmaceuticals IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹1,856.74 Cr – 27,345,162 shares |
| Fresh Issue | ₹680.00 Cr – 10,014,727 shares |
| Offer for sale | ₹1,176.74 Cr – 17,330,435 shares |
| Face value | ₹02 per share |
| Price Band | ₹646 to ₹679 per share |
| Lot size | 22 Shares |
| Employee Discount | ₹64 per share |
| Shareholding pre-issue | 147,356,280 |
| Shareholding post-issue | 157,371,007 |
| Listing Exchange | BSE & NSE |
Akums Drugs and Pharmaceuticals IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 22 | ₹14,938 |
| Retail (Max) | 13 | 286 | ₹194,194 |
| S-HNI (Min) | 14 | 308 | ₹209,132 |
| S-HNI (Max) | 66 | 1,452 | ₹985,908 |
| B-HNI (Min) | 67 | 1,474 | ₹1,000,846 |
Akums Drugs and Pharmaceuticals Offer Documents
Akums Drugs and Pharmaceuticals IPO Reservation Details
Akums Drugs and Pharmaceuticals IPO offers 27,368,151 shares. 8,137,276 (29.73%) to QIB, 4,068,637 (14.87%) to NII, 2,712,424 (9.91%) to RII, 243,902 (0.89%) to employees and 12,205,912 (44.60%) to Anchor investors. 123,292 RIIs will receive minimum 22 shares and 4,403 (sNII) and 8,806 (bNII) will receive minimum 308 shares. (in case of oversubscription)
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | 12,205,912 (44.60%) | NA |
| QIB Shares Offered | 8,137,276 (29.73%) | NA |
| NII (HNI) Shares Offered | 4,068,637 (14.87%) | |
| bNII > ₹10L | 2,712,425 (9.91%) | 8,806 |
| sNII < ₹10L | 1,356,212 (4.96%) | 4,403 |
| Retail Shares Offered | 2,712,424 (9.91%) | 123,292 |
| Employee Shares Offered | 243,902 (0.89%) | NA |
| Total Shares Offered | 27,368,151 (100%) | – |
Akums Drugs and Pharmaceuticals Financial Performance
| FY 2022 | FY 2023 | FY 2024 | |
| Revenue | 3,671.89 | 3,654.82 | 4,178.18 |
| Expenses | 3,874.95 | 3,475.93 | 4,231.45 |
| Net income | (250.87) | 97.82 | 0.79 |
| Margin (%) | (6.83) | 2.68 | 0.02 |
Akums Drugs and Pharmaceuticals Valuations & Margins
| FY 2022 | FY 2023 | FY 2024 (Post-Issue)* | |
| EPS | (17.02) | 6.64 | 0.05 |
| PE Ratio | – | – | 12,053.22 – 12,668.94 |
* Calculated on the basis of annualized Profits After Tax for FY 2024
| FY 2022 | FY 2023 | FY 2024 | |
| RONW (%) | (40.60) | 13.23 | (0.57) |
| NAV | 42.20 | 48.66 | 48.13 |
| ROCE (%) | (18.89) | 24.60 | 3.37 |
| EBITDA (%) | (1.87) | 10.38 | 3.73 |
| Debt/Equity | 0.58 | 0.75 | 0.69 |
Company Promoters
- Sanjeev Jain
- Sandeep Jain
- Akums Master Trust
Promoter Holding
| Pre Issue Share Holding | 84.94% |
| Post Issue Share Holding |
Akums Drugs and Pharmaceuticals Offer GMP Update
| Date | Day-wise IPO GMP | Kostak | Subject to Sauda |
| 5 August 2024 | 100 | – | 1,500 |
| 3 August 2024 | 130 | – | 2,100 |
| 2 August 2024 | 150 | – | 2,300 |
| 1 August 2024 | 180 | – | 2,800 |
| 31 July 2024 | 193 | – | 3,000 |
| 30 July 2024 | 193 | – | 3,000 |
| 29 July 2024 | 180 | – | 2,750 |
| 27 July 2024 | 175 | – | 2,650 |
| 26 July 2024 | 150 | – | 2,500 |
Akums Drugs – Comparison With Listed Peers
| Company | PE ratio | EPS | RONW (%) | NAV | Revenue (Cr.) |
| Akums Drugs and Pharmaceuticals | 12,668.94 | 0.05 | (0.57) | 48.13 | 4,178.18 |
| Divi’s Laboratories | 74.99 | 60.27 | 11.79 | 511.21 | 7,845.00 |
| Suven Pharma | 69.54 | 11.80 | 14.64 | 80.56 | 1,051.35 |
| Gland Pharma | 42.45 | 46.89 | 8.85 | 529.65 | 5,664.72 |
| Torrent Pharma | 60.20 | 48.94 | 24.15 | 202.57 | 10,728.00 |
| Alkem Laboratories | 34.18 | 150.19 | 17.41 | 862.46 | 12,667.58 |
| Eris Lifesciences | 34.95 | 28.79 | 15.16 | 190.12 | 2,009.14 |
| JB Chemicals | 51.38 | 34.85 | 18.90 | 188.37 | 3,484.18 |
| Mankind Pharma | 44.65 | 47.68 | 20.43 | 233.73 | 10,334.77 |
| Innova Captab | 29.91 | 18.66 | 11.35 | 145.20 | 1,081.31 |
Akums Drugs and Pharmaceuticals IPO Subscription Update
| Category | Subscription (times) |
|---|---|
| QIB | 90.09 |
| NII | 42.10 |
| bNII (bids above ₹10L) | 47.43 |
| sNII (bids below ₹10L) | 31.45 |
| Retail | 20.80 |
| Employee | 4.14 |
| Total | 63.44 |
Akums Drugs and Pharmaceuticals IPO Allotment Status
Akums Drugs and Pharmaceuticals IPO allotment status will be available on Link Intime’s website. Click on Link Intime IPO weblink to get allotment status.
Listing Details
| Listing Date | 06 August 2024 |
| BSE Scrip Code | 544222 |
| NSE Symbol | AKUMS |
| ISIN | INE09XN01023 |
| Final Issue Price | ₹679 per share |
Listing Day Update
| Listing Exchange | BSE | NSE |
| Final Issue Price | ₹679.00 | ₹679.00 |
| Open | ₹725.00 | ₹725.00 |
| Low | ₹724.50 | ₹725.00 |
| High | ₹797.45 | ₹797.50 |
| Last Trade | ₹796.35 | ₹796.25 |
Akums Drugs and Pharmaceuticals IPO Lead Manager(s)
- ICICI Securities Limited
- Axis Bank Limited
- Citigroup Global Markets India Private Limited
- Ambit Private Limited
Akums Drugs and Pharmaceuticals Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park Lal Bahadur Shastri Marg,
Vikhroli (West) Mumbai 400 083, Maharashtra, India
Tel: (+91) 81081 14949
E-mail: akumsdrugs.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Details
AKUMS DRUGS AND PHARMACEUTICALS LIMITED
Plot no. 131 to 133, Block C, Mangolpuri, Ind. Area,
Phase 1, Delhi – 110 083, India
Phone: +91 11 6904 1000
Email: cs@akums.net
Website: www.akums.in
Akums Drugs and Pharmaceuticals IPO FAQs
How many shares in Akums Drugs IPO are reserved for HNIs and retail investors?
The investors’ portion for QIB – 75%, NII – 15%, and Retail – 10%.
How to apply for an Akums Drugs Public Offer?
The best way to apply for Akums Drugs public offer is through Internet banking ASBA (know all about ASBA here). You can also apply online through your stock broker using UPI. If you prefer to make paper applications, fill up an offline IPO form and deposit the same to your broker.
What is Akums IPO GMP today?
Akums Drugs IPO GMP today is ₹ 100 per share.
What is Akums Drugs kostak rate today?
Akums Drugs kostak rate today is ₹ NA per application.
What is Akums Drugs Subject to Sauda rate today?
Akums Drugs Subject to Sauda rate today is ₹ 1,500 per application.
Final thoughts
Akums Drugs and Pharmaceuticals IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. Study the company well and subscribe if you feel good about it. I hope this post will give you enough details to research the company fundamentally. learn well and make wise decisions.
Happy Investing
