Akums Drugs IPO closing today; oversubscribed 9 times

1 Aug 2024 , 12:28 PM

On day 3 of bidding, Akums Drugs and Pharmaceuticals’ initial public offering (IPO) was subscribed 9.04 times overall by 12.20 pm. Retail Individual Investors (RIIs) led the charge, subscribing to 13.32 times their allocated share. Non-institutional investors (NIIs) followed with a subscription rate of nearly 21.46 times, while Qualified Institutional Buyers (QIBs) subscribed 1.59 times their quota. The employee segment also saw healthy participation, with a subscription rate of 3 times.

The IPO, targeting to raise ₹1,856.74 Crore, is set to close on August 1. The shares are expected to debut on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on August 6. The offering includes a fresh issue of 1 Crore shares valued at ₹680 Crore and an offer for sale (OFS) of 1.73 Crore shares, amounting to ₹1,176.74 Crore. The price band for the shares is set between ₹646 and ₹679 each.

Significant interest from anchor investors has already been secured, with ₹828.78 Crore raised on the anchor bid date of July 29. The proceeds from the IPO will be utilized to repay debts of the company and its subsidiaries, enhance working capital, pursue growth through acquisitions, and meet general corporate expenses.

ICICI Securities Ltd, Axis Bank Ltd, Citigroup Global Markets India Pvt Ltd, and Ambit Pvt Ltd are the book-running lead managers for the IPO, with Link Intime India Pvt Ltd serving as the registrar.

Founded in 2004, Akums Drugs and Pharmaceuticals is a leading pharmaceutical contract development and manufacturing organization (CDMO). The company also manufactures and sells branded drugs and active pharmaceutical ingredients (APIs). Despite a 13.81% increase in revenue for the fiscal year ending March 31, 2024, Akums reported a significant 99.19% decline in profit after tax (PAT) compared to the previous year.