Akums Drugs and Pharmaceuticals IPO opened to investors on July 30 and wants to raise an amount totalling to Rs 1,856.74. The company will close the issue for subscription on August 01.

Issue Size

The company will be raising Rs 1,856.74 crore from investors through fresh issue as well as an offer for sale. The company will collect Rs 680 crore through selling 10 million fresh shares. Meanwhile, the promoters and other selling shareholders will pocket Rs 1,176.74 crore by selling 1.73 crore shares. 

Price Band

Akums Drugs kept the price band in a range of Rs 646 to Rs 679 per equity share. 

Allotment and Listing

The pharma company’s shares are expected to be finalised by August 02. The listing is expected to take place on BSE and NSE on August 06, as per the tentative schedule. 

Minimum Investment Requirements

A retail buyer needs to apply for at least a lot of 22 shares aggregating to Rs 14,938. Albeit, there are different lot sizes for different buyers. For small NIIs, the minimum investment required is Rs 209,132 as they need to apply for at least 308 shares. 

About Akums Drugs and Pharmaceuticals

It is a pharmaceutical contract development and manufacturing organization (CDMO) that offers a 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).

Expert’s Take

“The company’s put call liabilities for recent new contracts adjustments were mandated under GAAP measures due to the lack of additional funding support. Based on restated financial data, although the issue pricing seems aggressive, this perception changes if we exclude such accounting provisions,” said the broking house Anand Rathi in a research report.

BRLMs and Registrar

ICICI Securities, Axis Bank, Citigroup Global Markets India, and Ambit Private are the book-running lead managers, while Link Intime India is the registrar for the issue.