CONTENTS: Akum Drugs IPO Priced to be ₹10000 Crore

Akum Drugs IPO priced ₹646-₹679/share

Akum Drugs IPO Priced to be ₹10000 Crore

Akum Drugs and Pharmaceuticals Limited has set a price range of ₹646 to ₹679 per share for its upcoming initial public offering (IPO), through which it aims to raise ₹1,857 crore. The IPO will open for subscription from July 30 to August 1, with anchor investor bidding starting on July 29.

The IPO consists of a fresh issue of equity shares amounting to ₹680 crore and an offer-for-sale (OFS) of 1.73 crore shares valued at ₹1,177 crore at the upper end of the price band. The OFS shares are being sold by promoters Sanjeev Jain, Sandeep Jain, and Ruby QC Investment Holdings Pte Ltd.

Additionally, the company has allocated ₹15 crore worth of shares for its employees. Funds raised from the fresh issue will be used to repay debt, support working capital needs, pursue acquisitions for growth, and for general corporate purposes.

Brokerage firms have estimated Akum Drugs and Pharmaceuticals Limited’s market capitalization to be ₹10,697 crore following the IPO.

The company has allocated 75% of the issue to qualified institutional buyers, 15% to non-institutional investors, and the remaining 10% to retail investors. Investors can bid for a minimum of 22 shares, and in multiples of 22 thereafter.

Established in 2004, Akums is a pharmaceutical contract development and manufacturing organization (CDMO) that provides a wide array of pharmaceutical products and services both in India and internationally.

As of September 30, 2023, some of its key 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).

ICICI Securities, Axis Capital, Citigroup Global Markets India, and Ambit Pvt Ltd are the lead managers for the IPO.