Akums Drugs and Pharmaceuticals IPO

Akums Drugs and Pharmaceuticals Limited IPO

Akums Drugs and Pharmaceuticals IPO Price: ₹646 to ₹679 per share
IPO Dates:
30 July 2024 – 1 August 2024

Akums Drugs and Pharmaceuticals Logo

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 DateJuly 30, 2024 to August 1, 2024
Listing DateTuesday, August 6, 2024
Face Value₹2 per share
Price Band₹646 to ₹679 per share
Lot Size22 Shares
Total Issue Size27,345,162 shares
(aggregating up to ₹1,856.74 Cr)
Fresh Issue10,014,727 shares
(aggregating up to ₹680.00 Cr)
Offer For Sale17,330,435 shares
(aggregating up to ₹1,176.74 Cr)
Employee DiscountRs 64 per share
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE
Share holding pre issue147,356,280
Share holding post issue157,371,007

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.

ApplicationLotsSharesAmount
Retail (Min)122₹14,938
Retail (Max)13286₹194,194
S-HNI (Min)14308₹209,132
S-HNI (Max)661,452₹985,908
B-HNI (Min)671.474₹1,000,846

Akums Drugs and Pharmaceuticals IPO Reservation

QIB Shares OfferedNot more than 75% of the Net offer
Retail Shares OfferedNot less than 10% of the Offer
NII (HNI) Shares OfferedNot less than 15% of the Offer

Akums Drugs and Pharmaceuticals IPO Timetable (Important Dates)

IPO Open DateTuesday, July 30, 2024
IPO Close DateThursday, August 1, 2024
Basis of AllotmentFriday, August 2, 2024
Initiation of RefundsMonday, August 5, 2024
Credit of Shares to DematMonday, August 5, 2024
Listing DateTuesday, August 6, 2024
Cut-off time for UPI mandate confirmation5 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 Ended31 Mar 202231 Mar 202331 Mar 2024
Assets3069.053266.533516.37
Revenue3694.523700.934212.21
Profit After Tax-250.8797.820.79
Net Worth621.98717.79709.50
Reserves & Surplus787.79868.70861.01
Total Borrowing868.70536.97491.56
Amount in ₹ Crore

Key Performance Indicator – Akums Drugs and Pharmaceuticals IPO

KPIValues
ROE0.11%
ROCE3.37%
Debt/ Equity0.69
RoNW-0.57%
P/BV13.69
PAT Margin0.02%

Objects of the Issue:

“The company intends to use the net proceeds for the following purposes:

  1. Repaying or prepaying debts of the company and its subsidiaries.
  2. Pursuing growth opportunities through acquisitions.
  3. Meeting additional working capital needs.
  4. General corporate purposes.

Prospectus Links:

Prospectus: Official documents that provide detailed information about the IPO and the company.

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