Ahead of the listing, the company’s shares traded with a GMP of Rs 140 in the unlisted market.
The IPO received a healthy response from investors with overall subscription at 63.5 times. Analysts advised investors to subscribe to the IPO as the issue is available at reasonable valuations.
Further, the company is the largest CDMO serving the Indian pharmaceutical industry with an established track record and has a diverse client base.
The net proceeds of the IPO will be utilized by the company towards the repayment/ prepayment of indebtedness of the company and its subsidiaries, funding incremental working capital requirements, pursuing inorganic growth initiatives through acquisitions and general corporate purposes.Akums Drugs and Pharmaceuticals is a contract development and manufacturing organization (CDMO), offering a comprehensive range of 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.An increase in chronic patient population, insurance penetration, trade generics, demand from tier II and III cities, and government schemes focused on drug access are supporting growth in the Indian pharmaceutical market. Contract development and manufacturing organizations assist pharmaceutical companies to employ an asset-light model and access global and specialized expertise while staying abreast with rapid innovation launches.
In FY24, the company’s revenue from operations grew 14% year-on-year to Rs 4,178 crore from Rs 3655 crore in the preceding financial year. Meanwhile, profit after tax declined drastically to Rs 79 lakh, compared with Rs 97.8 crore a year ago.
Axis Capital, ICICI Securities, Citigroup Global Markets India and Ambit acted as the book running lead managers to the issue, while Link Intime India was the registrar.
