Akum Drugs & Pharmaceuticals IPO Debuts On Street With 52% Premium

The initial public offering (IPO) of Akum Drugs Pharmaceuticals kicked-off with robust listing gains as the stock opened with 52 per cent gain at RS 1,030 on the National Stock Exchange (NSE) against its issue price of Rs 679 per share.

The Rs 1,856 crore IPO consisted of fresh issues of up to Rs 680 crore and an offer-for-sale (OFS) worth Rs 1,176 crore by promoter and investor selling shareholders. The firm fixed the price band for the issue at Rs 646 to 679 per share.

During its subscription phase, the issue received decent response as the final subscription totalled to 63.44 times. Retail category was subscribed 20.8 times while qualified institutions received the highest subscription of 90 times.

ICICI Securities, Axis Bank, Citigroup Global Markets and Ambit were the book running lead managers, while Link Intime India was the registrar to the offer. 

IPO Objectives
The proceeds of Rs 680 crore from the fresh issue will be utilised for prepayment or scheduled repayment of a portion of certain outstanding borrowings availed by the company and general corporate purposes.

Additionally, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.

Firm’s Financials
The firm registered revenue of Rs 4,212 crore in FY24, compared to Rs 3,700 crore in FY23. 

However, the firm’s profit after tax (PAT) decreased to Rs 79 lakh in FY24 compared to Rs 97.82 crore in FY23.

Overall, revenue increased by 13.8 per cent, whereas PAT reduced to almost 100 per cent. 

Akums Drugs and Pharmaceuticals is a contract development and manufacturing organization (CDMO), offering pharmaceutical products and services in India and overseas. The company carries out operations across the pharmaceutical value chain, operating as a CDMO, marketer of formulations, and manufacturer of APIs.

Akums Drugs’ presence in the Indian pharmaceutical landscape is augmented by a domestic CDMO presence and amplified through global export initiatives. This provides a competitive edge in the industry, allowing it to navigate growth opportunities across multiple markets.