The issue is a combination of fresh issue of 1 crore shares aggregating to Rs 680.00 crores and offer for sale of 1.73 crore shares aggregating to Rs 1,176.74 crores.Akums Drugs and Pharmaceuticals IPO is a book built issue of Rs 1,856.74 crores.
Akums Drugs and Pharmaceuticals IPO opens for subscription on July 30, 2024 and closes on August 1, 2024. The allotment for the Akums Drugs and Pharmaceuticals IPO is expected to be finalized on Friday, August 2, 2024. Akums Drugs and Pharmaceuticals IPO will list on BSE, NSE with tentative listing date fixed as Tuesday, August 6, 2024.
Akums Drugs and Pharmaceuticals IPO price band is set at ₹646 to ₹679 per share. The minimum lot size for an application is 22 Shares. The minimum amount of investment required by retail investors is ₹14,938. The minimum lot size investment for sNII is 14 lots (308 shares), amounting to ₹209,132, and for bNII, it is 67 lots (1,474 shares), amounting to ₹1,000,846.
The issue includes a reservation of up to 243,902 shares for employees offered at a discount of Rs 64 to the issue price.
ICICI Securities Limited, Axis Bank Limited, Citigroup Global Markets India Private Limited and Ambit Private Limited are the book running lead managers of the Akums Drugs and Pharmaceuticals IPO, while Link Intime India Private Ltd is the registrar for the issue.
About Akums Drugs and Pharmaceuticals Limited
Established in 2004, Akums Drugs and Pharmaceuticals Limited is a pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services in India and overseas.
The company primarily provides end-to-end solutions for product development and manufacturing as well as research and development (R&D) of formulations, preparation and submission of regulatory dossiers in the Indian and global markets and other testing services. The company is also engaged in the manufacture and sale of branded drugs and active pharmaceutical ingredients (APIs).
As a CDMO, the company manufactures a wide range of dosage forms including tablets, capsules, liquid medicines, vials, ampoules, blow-filled closures, topical preparations, eye drops, dry powder injections and gummy bears, to name a few.
The company 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 the top 30 pharmaceutical companies in India in terms of revenue. For its CDMO business, the company 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 for its CDMO business 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).
As of September 30, 2023, Akums Drugs and Pharmaceuticals had a total of 16,463 employees, including 7,211 full-time employees and 9,252 contract employees.
Refer to Akums Drugs and Pharmaceuticals IPO RHP for detailed information.
Akums Drugs and Pharmaceuticals IPO Details
| IPO Date | July 30, 2024 to August 1, 2024 |
| Listing Date | [.] |
| 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 of ₹2 |
| (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 Reservation
Akums Drugs and Pharmaceuticals IPO offers 27,368,151 shares. 8,137,276 (29.73%) to QIB, 4,068,637 (14.87%) to NII, 2,712,424 (9.91%) to RII, 243,902 (0.89%) to employees and 12,205,912 (44.60%) to Anchor investors. 123,292 RIIs will receive minimum 22 shares and 4,403 (sNII) and 8,806 (bNII) will receive minimum 308 shares. (in case of oversubscription)| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | 12,205,912 (44.60%) | NA |
| QIB Shares Offered | 8,137,276 (29.73%) | NA |
| NII (HNI) Shares Offered | 4,068,637 (14.87%) | |
| bNII > ₹10L | 2,712,425 (9.91%) | 8,806 |
| sNII < ₹10L | 1,356,212 (4.96%) | 4,403 |
| Retail Shares Offered | 2,712,424 (9.91%) | 123,292 |
| Employee Shares Offered | 243,902 (0.89%) | NA |
| Total Shares Offered | 27,368,151 (100%) |
Akums Drugs and Pharmaceuticals IPO Anchor Investors Details
Akums Drugs and Pharmaceuticals IPO raises Rs 828.78 crore from anchor investors. Akums Drugs and Pharmaceuticals IPO Anchor bid date is July 29, 2024. Akums Drugs and Pharmaceuticals IPO Anchor Investors list| Bid Date | July 29, 2024 |
| Shares Offered | 12,205,912 |
| Anchor Portion Size (In Cr.) | 828.78 |
| Anchor lock-in period end date for 50% shares (30 Days) | September 1, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | October 31, 2024 |
Akums Drugs and Pharmaceuticals IPO Timeline (Tentative Schedule)
Akums Drugs and Pharmaceuticals IPO opens on July 30, 2024, and closes on August 1, 2024.| 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 IPO Lot Size
Investors can bid for a minimum of 22 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.| 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 Promoter Holding
Sanjeev Jain, Sandeep Jain, and Akums Master Trust are the company's promoters.| Share Holding Pre Issue | 84.94% |
| Share Holding Post Issue |
Akums Drugs and Pharmaceuticals Limited Financial Information (Restated Consolidated)
Akums Drugs and Pharmaceuticals Limited's revenue increased by 13.81% and profit after tax (PAT) dropped by -99.19% between the financial year ending with March 31, 2024 and March 31, 2023.| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets | 3,516.37 | 3,266.53 | 3,069.05 |
| Revenue | 4,212.21 | 3,700.93 | 3,694.52 |
| Profit After Tax | 0.79 | 97.82 | -250.87 |
| Net Worth | 709.50 | 717.19 | 621.98 |
| Reserves and Surplus | 861.01 | 868.70 | 787.79 |
| Total Borrowing | 491.56 | 536.97 | 357.95 |
Key Performance Indicator
| 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 (Akums Drugs and Pharmaceuticals IPO Objectives)
The Company proposes to utilize the Net Proceeds towards the funding of the following objects:
- Repayment/ prepayment of indebtedness of the company and its Subsidiaries;
- Funding incremental working capital requirements of the company;
- Pursuing inorganic growth initiatives through acquisitions; and
- General corporate purposes.
Akums Drugs and Pharmaceuticals Limited Contact Details
304, Mohan Place,
LSC Saraswati Vihar,
Delhi – 110 034
Phone: +91 11 6904 1000
Email: cs@akums.net
Website: http://www.akums.in/
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