Akums Drugs and Pharma IPO Opens Tomorrow: Price Band, GMP, and 10 Key Points You Must Know!

The initial public offering (IPO) of Akums Drugs and Pharma will open for subscription on July 30 and will close on August 1. The company aims to raise around ₹1,952 crore through this public offer. Here are 10 key points to know before subscribing to the Akums Drugs and Pharma IPO:

What does Akums Drugs and Pharma do?

Akums Drugs is a contract development and manufacturing organization (CDMO) in the pharmaceutical industry. They offer a wide range of pharmaceutical products and services in India and overseas. They also sell branded pharmaceutical formulations and manufacture active pharmaceutical ingredients (APIs).

What is the industry overview for Akums Drugs and Pharma?

The Indian pharmaceutical market is growing due to an increase in chronic diseases, higher insurance coverage, demand from smaller cities, and government schemes to improve drug access. CDMOs like Akums Drugs help pharmaceutical companies adopt an asset-light model and access global expertise while keeping up with rapid innovation.

What is the current grey market premium (GMP) for Akums Drugs and Pharma?

Market analysts report that the current GMP for Akums Drugs and Pharma is ₹180 in the unlisted market, indicating a 26% premium over the issue price.

What is the size of the Akums Drugs and Pharma IPO?

The IPO includes a fresh issue of shares worth ₹680 crore and an offer for sale (OFS) of up to 1.73 crore shares, each with a face value of ₹2.

What is the price band for the Akums Drugs and Pharma IPO?

The IPO is priced between ₹646 and ₹679 per share. Investors can bid for shares in lots of 22. At the upper end of the price range, the company plans to raise ₹1,857 crore.

What is the structure of the Akums Drugs and Pharma IPO?

In the public offer, 75% of the shares are reserved for qualified institutional buyers (QIBs), 10% for retail investors, and 15% for non-institutional investors (NIIs).

How has Akums Drugs and Pharma performed financially?

In FY24, the company’s revenue from operations increased by 14% year-on-year to ₹4,178 crore, up from ₹3,655 crore in the previous financial year. However, profit after tax dropped significantly to ₹79 lakh from ₹97.8 crore the previous year.

What are the objectives of the Akums Drugs and Pharma IPO?

The proceeds from the IPO will be used to repay the company’s and its subsidiaries’ debt, fund additional working capital needs, pursue growth through acquisitions, and cover general corporate expenses.

Who are the lead managers for the Akums Drugs and Pharma IPO?

Axis Capital, ICICI Securities, Citigroup Global Markets India, and Ambit are the book running lead managers for the issue. Link Intime India is the registrar.

When are the share allotment and listing dates for the Akums Drugs and Pharma IPO?

The share allotment is likely to be finalized on August 2, and the company is expected to list on the stock exchanges on August 6.