Akums Drugs and Pharmaceuticals IPO Price: ₹646 to ₹679 per share
IPO Dates: 30 July 2024 – 1 August 2024
Company Overview
Established in 2004, Akums Drugs and Pharmaceuticals Limited is a leading pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services in India and overseas.
Services and Capabilities
The company provides comprehensive end-to-end solutions for product development, manufacturing, research and development (R&D) of formulations, and preparation and submission of regulatory dossiers in both Indian and global markets. It also offers various testing services. Additionally, Akums is involved in manufacturing and selling branded drugs and active pharmaceutical ingredients (APIs).
As a CDMO, Akums manufactures a diverse range of dosage forms, including tablets, capsules, liquid medicines, vials, ampoules, blow-filled closures, topical preparations, eye drops, dry powder injections, and gummy bears. The company holds intellectual property rights for the manufacturing processes of several of its formulations. Its primary focus is on delivering end-to-end product development and manufacturing solutions to its clients, along with formulation research, regulatory dossier preparation and filing, and other testing services.
Achievements and Production Capacity
Akums has produced a total of 4,025 commercialized formulations in over 60 dosage forms. In the financial year 2023, the company manufactured formulations for 26 of India’s top 30 pharmaceutical companies by revenue. For its CDMO business, Akums operates 10 manufacturing units with a cumulative production capacity of 49.21 billion units annually as of September 30, 2023.
The company plans to expand its production capacity with two additional production units to be commissioned in FY 2025. Some of its production facilities have been accredited by various global regulatory bodies, such as the European Good Manufacturing Practice (EU-GMP), the World Health Organization Good Manufacturing Practice (WHO-GMP), and the United States National Sanitation Foundation (US NSF).
Market Position
Akums is the largest India-focused CDMO in terms of revenue, production capacity, and clients served during the financial year 2023, according to the F&S Report. During the financial year 2024, Akums held a 30.2% market share of the Indian domestic CDMO market by value, up from 26.7% in the financial year 2021.
Bidding Starts In
Akums Drugs and Pharmaceuticals IPO Specifics:
| IPO Date | July 30, 2024 to August 1, 2024 |
| Listing Date | Tuesday, August 6, 2024 |
| Face Value | ₹2 per share |
| Price Band | ₹646 to ₹679 per share |
| Lot Size | 22 Shares |
| Total Issue Size | 27,345,162 shares (aggregating up to ₹1,856.74 Cr) |
| Fresh Issue | 10,014,727 shares (aggregating up to ₹680.00 Cr) |
| Offer For Sale | 17,330,435 shares (aggregating up to ₹1,176.74 Cr) |
| Employee Discount | Rs 64 per share |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 147,356,280 |
| Share holding post issue | 157,371,007 |
Akums Drugs and Pharmaceuticals IPO Lot Size
Bidders have the opportunity to bid for a minimum of 22 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| 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 IPO Reservation
| QIB Shares Offered | Not more than 75% of the Net offer |
| Retail Shares Offered | Not less than 10% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
Akums Drugs and Pharmaceuticals IPO Timetable (Important Dates)
| IPO Open Date | Tuesday, July 30, 2024 |
| IPO Close Date | Thursday, August 1, 2024 |
| Basis of Allotment | Friday, August 2, 2024 |
| Initiation of Refunds | Monday, August 5, 2024 |
| Credit of Shares to Demat | Monday, August 5, 2024 |
| Listing Date | Tuesday, August 6, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 1, 2024 |
Akums Drugs and Pharmaceuticals Limited IPO Financial Information
Akums Drugs and Pharmaceuticals Limited witnessed a 13.81% growth in revenue, while the profit after tax (PAT) declined by -99.19% from the financial year ending on March 31, 2024, compared to March 31, 2023.
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 |
|---|---|---|---|
| Assets | 3069.05 | 3266.53 | 3516.37 |
| Revenue | 3694.52 | 3700.93 | 4212.21 |
| Profit After Tax | -250.87 | 97.82 | 0.79 |
| Net Worth | 621.98 | 717.79 | 709.50 |
| Reserves & Surplus | 787.79 | 868.70 | 861.01 |
| Total Borrowing | 868.70 | 536.97 | 491.56 |
Key Performance Indicator – Akums Drugs and Pharmaceuticals IPO
| KPI | Values |
|---|---|
| ROE | 0.11% |
| ROCE | 3.37% |
| Debt/ Equity | 0.69 |
| RoNW | -0.57% |
| P/BV | 13.69 |
| PAT Margin | 0.02% |
Objects of the Issue:
“The company intends to use the net proceeds for the following purposes:
- Repaying or prepaying debts of the company and its subsidiaries.
- Pursuing growth opportunities through acquisitions.
- Meeting additional working capital needs.
- General corporate purposes.
Prospectus Links:
Prospectus: Official documents that provide detailed information about the IPO and the company.
