Get App
Akums Drugs and Pharmaceuticals IPO is a book-built issue of Rs 1,856.74 crores. The issue is a combination of a fresh issue of 1 crore shares aggregating to Rs 680.00 crores and an offer for sale of 1.73 crore shares aggregating to Rs 1,176.74 crores.
Akums Drugs and Pharmaceuticals IPO opens for subscription on July 30, 2024 and closes on August 1, 2024. The price band for the IPO is set at ₹646 to ₹679 per share and the minimum lot size for an application is 22 Shares.
Company Summary
Established in 2004, Akums Drugs and Pharmaceuticals Limited is a pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services in India and overseas.
The company primarily provides end-to-end solutions for product development and manufacturing as well as research and development (R&D) of formulations, preparation and submission of regulatory dossiers in the Indian and global markets, and other testing services. The company is also engaged in the manufacture and sale of branded drugs and active pharmaceutical ingredients (APIs).
As a CDMO, the company manufactures a wide range of dosage forms including tablets, capsules, liquid medicines, vials, ampoules, blow-filled closures, topical preparations, eye drops, dry powder injections and gummy bears, to name a few.
The company has produced a total of 4,025 commercialized formulations in over 60 dosage forms. In the financial year 2023, the company manufactured formulations for 26 of the top 30 pharmaceutical companies in India in terms of revenue. For its CDMO business, the company operates 10 manufacturing units with a cumulative production capacity of 49.21 billion units annually (as of September 30, 2023).
As of September 30, 2023, Akums Drugs and Pharmaceuticals had a total of 16,463 employees, including 7,211 full-time employees and 9,252 contract employees.
Company Strengths
They are the largest India-focused CDMO in terms of revenue, production capacity, and clients served during the Financial Year 2023.
Along with their Subsidiaries, as of March 31, 2024, they operate 12 manufacturing units with a cumulative formulations manufacturing capacity aggregating to 49.23 billion units annually, to produce a wide range of dosage forms.
They have demonstrated robust growth and delivered superior returns, achieving CDMO revenue growth at a CAGR of 10.79% between Financial Years 2022 and 2024, and EBITDA growth at a CAGR of 10.28% between Financial Years 2022 and 2024.
As of March 31, 2024, their client base for their CDMO business comprised of 1,524 Indian and multinational pharmaceutical and wellness companies, increasing from 1,386 as of March 31, 2022.
Company Financials
Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
Assets | 3,516.37 | 3,266.53 | 3,069.05 |
Revenue | 4,212.21 | 3,700.93 | 3,694.52 |
Profit After Tax | 0.79 | 97.82 | -250.87 |
Net Worth | 709.50 | 717.19 | 621.98 |
Reserves and Surplus | 861.01 | 868.70 | 787.79 |
Total Borrowing | 491.56 | 536.97 | 357.95 |
Amount in ₹ Crore | |||
Objectives of the IPO
The Company proposes to utilize the Net Proceeds towards the funding of the following objects
- Repayment/ prepayment of indebtedness of the company and its Subsidiaries;
- Funding incremental working capital requirements of the company;
- Pursuing inorganic growth initiatives through acquisitions; and
- General corporate purposes.
Promoters of the company
The Promoters of the Company are Sanjeev Jain, Sandeep Jain, and Akums Master Trust.
The Promoters, in the aggregate, hold 121,465,630 Equity Shares in the Company, representing 82.44% of the issued, subscribed, and paid-up Equity Share capital of the Company, on a fully diluted basis.
IPO details
| IPO Date | July 30, 2024 to August 1, 2024 |
| Listing Date | Tuesday, August 6, 2024 |
| Face Value | ₹2 per share |
| Price Band | ₹646 to ₹679 per share |
| Lot Size | 22 Shares |
| Total Issue Size | 27,345,162 shares (aggregating up to ₹1,856.74 Cr) |
| Fresh Issue | 10,014,727 shares (aggregating up to ₹680.00 Cr) |
| Offer for Sale | 17,330,435 shares of ₹2 (aggregating up to ₹1,176.74 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
Lot Allocation details
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 22 | ₹14,938 |
| Retail (Max) | 13 | 286 | ₹194,194 |
| S-HNI (Min) | 14 | 308 | ₹209,132 |
| S-HNI (Max) | 66 | 1452 | ₹985,908 |
| B-HNI (Min) | 67 | 1474 | ₹1,000,846 |
Allotment Schedule
| Basis of Allotment | Friday, August 2, 2024 |
| Initiation of Refunds | Monday, August 5, 2024 |
| The credit of Shares to Demat | Monday, August 5, 2024 |
| Listing Date | Tuesday, August 6, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 1, 2024 |
IPO Reservation
| Investor Category | Shares Offered |
| QIB Shares Offered | Not less than 75.00% of the Net offer |
| Retail Shares Offered | Not more than 10.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
To check allotment, click here