Akum Drugs IPO to Open on July 30, Price Band Set At Rs.646-679 Per Share

Akums Drugs and Pharmaceuticals Limited is a leading pharmaceutical contract development and manufacturing organization (CDMO) that provides extensive pharmaceutical products and services in India and internationally. The company offers end-to-end solutions for product development, manufacturing, and R&D of formulations. It prepares and submits regulatory dossiers for both Indian and global markets and provides various testing services. Akums also manufactures and sells branded drugs and active pharmaceutical ingredients (APIs). Their production capabilities include a broad range of dosage forms, such as tablets, capsules, liquid medicines, vials, ampoules, blow-filled closures, topical preparations, eye drops, dry powder injections, and gummy bears.

Details of the IPO

The Akums Drugs IPO is structured as a combination of a fresh issue and an offer for sale. The fresh issue consists of 1 crore shares, aggregating to Rs 680.00 crores. Additionally, there is an offer for sale of 1.73 crore shares, amounting to Rs 1,262.83 crores. The price band for the IPO is set between Rs.646 to Rs.679 per share, and the minimum lot size for an application is 22 shares. 

The IPO is managed by prominent book-running lead managers: ICICI Securities Limited, Axis Bank Limited, Citigroup Global Markets India Private Limited, and Ambit Private Limited. Link Intime India Private Ltd is the appointed registrar for the issue.

Objectives of the Issue

The company plans to use the net proceeds from the IPO for several strategic purposes. These include repaying or prepaying existing debts of the company and its subsidiaries, funding additional working capital requirements to support its operations, and pursuing growth through acquisitions to expand its market presence. Additionally, a portion of the proceeds will be allocated for general corporate purposes, ensuring overall business growth and stability.

Financial Performance

Conclusion: The subscription of the book-built issue of Rs 1,856.74 crores of Akums Drugs and Pharmaceuticals IPO opens on July 30, 2024, and closes on August 1, 2024. The allotment of shares is expected to be finalized on Friday, August 2, 2024. The shares will be listed on the BSE and NSE, with a tentative listing date of Tuesday, August 6, 2024. 

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Disclaimer: This blog has been written exclusively for educational purposes. The securities  mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.