Akums Drugs and Pharmaceuticals Ltd, located in Delhi, has established a price band of Rs 646-679 per share for its initial public offering, which will be ready for subscription on July 30. The anchor bidding will begin on July 29, and the offer will end on August 1.
The allotments will be finalized on August 2, with refunds commenced and equity shares awarded on August 5. The business plans to list on exchanges on August 6.
The IPO comprises of a fresh issue of Rs680 crore and an offer for sale of up to 1.73 crore by the company's existing shareholders and promoter. On the issue's top price range, the OFS is priced at Rs 1,175 crore, bringing the overall IPO size to Rs1,855. The firm's entire market value is Rs 10,000 crore.
Promoters Sanjeev and Sandeep Jain will sell 15.12 lakh equity shares each in the OFS, while investor Ruby QC Investment Holdings Pte Ltd would sell 1.43 crore shares. The weighted average acquisition cost for Ruby was Rs 231.64 per share.
Ruby QC Investment owns 14.65 percent of the pharma company's shares, while promoters possess 82.44 percent. Employee trusts own the remaining 2.91 percent.
The net proceeds from the fresh offering will be used to settle the company's and its subsidiaries' obligations. Additionally, the IPO cash will be used for additional working capital requirements and inorganic expansion plans.
The firm, which claimed to be the largest India-focused CDMO in terms of revenue, production capacity, and clients served in FY23, had a 30.2 percent market share of the Indian domestic CDMO market by value in fiscal 2024.
The Indian domestic CDMO market is expected to develop at a CAGR of 14.3 percent between FY24 and FY28, nearly double its previous growth pace. The market is expected to reach $2.8 billion by FY28.
Akums maintains ten production plants for the CDMO industry, with a combined total manufacturing capacity of 49.23 billion units per year in FY24. Additionally, its new injectable plant is scheduled to open in fiscal 2025.
The Akums Drugs IPO is led by ICICI Securities, Axis Capital, Citigroup Global Markets India, and Ambit, with Link Intime India serving as the registrar.
