Akums Drugs and Pharmaceuticals is set to list its shares on the stock exchanges tomorrow, Tuesday, August 6. The IPO share allotment was finalized on Friday, August 2. Today, Monday, August 5, the shares will be credited to the demat accounts of those who have been allocated shares, and refunds will be processed for those who did not receive shares.
The IPO saw strong demand, especially from qualified institutional buyers and non-institutional investors. According to BSE data, the IPO was subscribed 63.44 times overall. Retail investors subscribed 20.80 times, non-institutional investors 42.10 times, employees 4.14 times, and qualified institutional buyers (QIBs) 90.09 times.
The public subscription period started on July 30 and ended on Thursday, August 1. The issue price was set between ₹646 and ₹679. Before the public subscription opened, Akums raised ₹829 crore from anchor investors.
The company reserved 75% of the issue size for qualified institutional buyers, 15% for non-institutional investors, and 10% for retail investors. Investors could bid for a minimum of 22 equity shares and multiples thereof.
Established in 2004, Akums is a pharmaceutical contract development and production organization (CDO). It offers a wide range of pharmaceutical products and services both in India and internationally.
Some of Akums’ major clients include Alembic Pharmaceuticals, Alkem Laboratories, Cipla, Dabur India, Dr. Reddy’s Laboratories, Hetero Healthcare, Ipca Laboratories, Mankind Pharma, MedPlus Health Services, Micro Labs, Mylan Pharmaceuticals, Natco Pharma, Sun Pharmaceutical Industries, and Amishi Consumer Technologies (The Mom’s Co).
Prashanth Tapse, Senior VP (Research) at Mehta Equities Ltd, believes that despite market pressure, Akums Drugs can debut with gains of 10-15% above the issue price.
Akums Drugs IPO Grey Market Premium
The grey market premium (GMP) for Akums Drugs IPO today is +58, indicating that the shares are trading at a ₹58 premium in the grey market. Based on the upper end of the IPO price band (₹679) and the current GMP, the expected listing price is around ₹737 per share, an 8.54% increase from the IPO price.
Recent grey market activity shows that the GMP has been trending downward. Over the last 13 sessions, the GMP ranged from ₹0 to ₹211.
The GMP indicates how much investors are willing to pay above the issue price.
Akums Drugs and Pharmaceuticals IPO Details
The Akums Drugs IPO, worth ₹1,857 crore, includes a fresh issue of ₹680 crore and an offer-for-sale (OFS) of 17,330,435 equity shares by promoters and other investors. In the OFS, Ruby QC Investment Holdings Pte Ltd will sell 1.43 crore shares, and promoters Sanjeev and Sandeep Jain will each sell 15.12 lakh equity shares.
The net proceeds from the fresh issue will be used to pay off debts of the company and its subsidiaries (Pure and Cure Healthcare, Maxcure Nutravedics, and Pure), fund inorganic growth projects, and meet increased working capital needs.
ICICI Securities Ltd, Axis Bank Ltd, Citigroup Global Markets India Private Ltd, and Ambit Private Ltd are the book-running lead managers for the IPO. Link Intime India Private Ltd is the registrar for the offering.
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