The IPO comprises a fresh issue of shares worth Rs 680 crore and an offer for sale (OFS) of up to 1.73 crore shares with a face value of Rs 2 per share.
The net proceeds of the IPO will be utilized towards repayment of debt of the company and its subsidiaries, funding incremental working capital requirements, pursuing inorganic growth initiatives through acquisitions and general corporate purposes.
Akums Drugs and Pharma IPO price band
The IPO is priced in the range of Rs 646-679 per share, where investors can bid for 22 shares in one lot. At the upper end, the company plans to raise Rs 1857 crore through the issue.
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Akums Drugs and Pharma IPO preview
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 established track record and has a diverse client base
“Akums Drugs and Pharmaceuticals financial performance is driven by leveraging its leadership position to increase market share and consolidate position in the CDMO market, expand global presence through strategic initiatives, scale API business, focus on R&D and strong manufacturing capabilities, all of which have supported robust growth,” said StoxBox while assigning a subscribe rating.
“The company’s client base comprises a wide variety of organizations, including pharmaceutical companies, nutraceutical firms, cosmo-derma businesses, wellness companies, e-commerce enterprises, healthcare providers, and both central and state government entities,” said Anand Rathi which also has a subscribe rating.
Akums Drugs and Pharma GMP
According to market analysts, the current GMP of Akums Drugs and Pharma is Rs 180 in the unlisted market, indicating a premium of 26% to the issue price.
Other details
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.
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 are the book running lead managers to the issue, while Link Intime India is the registrar to the offer.
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