The shares of Akums Drugs and Pharmaceuticals will start trading on the stock exchanges this Tuesday.
Before the listing, the stock is showing a Grey Market Premium (GMP) of ₹140. With the upper price set at ₹679, this suggests the stock might list with a 21% premium. The IPO was very popular, receiving 63.5 times more subscriptions than available shares.
Analysts suggest subscribing to the IPO, noting that it’s priced reasonably. Akums Drugs is the largest Contract Development and Manufacturing Organization (CDMO) in India’s pharmaceutical industry. The company has a solid reputation and a wide range of clients.
The money raised from the IPO will be used to pay off debt, fund working capital, make acquisitions, and cover general business expenses. Akums offers a full range of pharmaceutical services both in India and internationally. They operate across the entire pharmaceutical supply chain, from manufacturing to marketing.
The Indian pharmaceutical market is growing due to more chronic patients, increased insurance coverage, higher demand in smaller cities, and government programs to improve drug access.
The CDMO model helps pharmaceutical companies be more flexible, access global expertise, and keep up with innovation.
For FY24, Akums’ revenue grew by 14% to ₹4,178 crore, up from ₹3,655 crore last year. However, their profit after tax fell to ₹79 lakh, down from ₹97.8 crore the previous year.
Axis Capital, ICICI Securities, Citigroup Global Markets India, and Ambit managed the IPO, while Link Intime India was the registrar.
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