The First Public Offering (IPO) of Akums Drugs and Pharmaceuticals Ltd is about to take place, and the price range for each share is set between Rs 646 and Rs 679. The subscription period for this IPO is set to begin on July 30 and end on August 1. Starting on July 29, anchor investors will be able to submit bids; the final allocations will be verified on August 2. August 5 is when refunds and the crediting of equity shares to investors’ accounts are anticipated to happen. August 6 is when the company is scheduled to go public on stock exchanges.
The IPO would consist of two primary parts: an offer for sale (OFS) by current shareholders and promoters of up to 1.73 crore shares, and a new issue of shares valued at Rs 680 crore. The OFS is valued at Rs 1,175 crore at the upper end of the pricing range, making the total IPO size Rs 1,855 crore. The market capitalization of Rs 10,000 crore for Akums is reflected in this figure.
The investor Ruby QC Investment Holdings Pte Ltd would sell 1.43 crore shares in the OFS, while promoters Sanjeev and Sandeep Jain each want to sell 15.12 lakh shares. Ruby QC made a significant profit on their investment, as seen by their average purchase cost per share of Rs 231.64.
At the moment, the promoters own a commanding 82.44 percent of Akums, with Ruby QC Investment controlling the remaining 14.65 percent. The remaining 2.91 percent of the shares are owned by employee trusts.
The company’s debts as well as those of its subsidiaries, Maxcure Nutravedics, Pure, and Cure Healthcare, will be settled using the proceeds of the new issuance. The money will also help with prospective inorganic expansion projects and additional working capital needs.
As of FY23, Akums asserts that it is the biggest Contract Development and Manufacturing Organization (CDMO) with an emphasis on India in terms of revenue, production capacity, and clientele. By value, the corporation has a substantial market share of 30.2 percent in the Indian domestic CDMO industry. It is estimated that this industry would grow significantly, with a Compound Annual Growth Rate (CAGR) of 14.3 percent from FY24 to FY28, reaching a market size of $2.8 billion by FY28.
As of FY24, the corporation ran ten manufacturing facilities with a combined yearly production capacity of 49.23 billion formulations. By fiscal 2025, a new injectable facility should be up and running.The book running lead managers for the IPO are ICICI Securities, Axis Capital, Citigroup Global Markets India, and Ambit. Link Intime India will act as the registrar for the offering.
SOURCE:
ECONOMIC TIMES
