kums Drugs and Pharmaceuticals IPO Subscription Status, Review: Akums Drugs and Pharmaceuticals IPO will close its subscription to investors on August 01. The IPO has collected bids over 4.46 times more than the offered shares. The segment has been booked by over 9 times the offered issue and NII category 8.5 times.
Issue Size
The company wants to collect Rs 1,856.74 crore from investors through fresh issue and an offer for sale. The company will raise Rs 680 crore by selling 10 million fresh shares. Meanwhile, the promoters and other selling shareholders will collect 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.
GMP
The shares of Akums Drugs and Pharma were attracting a grey market premium of more than 25% to its issue price. The grey market is an unofficial place where shares change hands illegally ahead of listing.
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.
Expert’s take
“We believe Akums Drugs and Pharmaceuticals IPO allows investors to invest in a prominent CDMO player distinguished as the largest India-focused CDMO by revenue, production capacity and client base. We think the company’s comprehensive product offerings and extensive manufacturing capabilities, along with its strategic presence across the pharmaceutical value chain, provide a solid foundation for sustained growth. We also believe Akum’s strong market share in the Indian CDMO market, coupled with its impressive R&D capabilities and diverse client base—including relationships with top pharmaceutical companies—underscore its robust market position,” said Rajan Shinde, Research Analyst at Mehta Equities.
About Akums Drugs and Pharmaceuticals
Akums Drugs and Pharmaceuticals is a contract development and manufacturing organization (CDMO) that provides a range of pharma 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).
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.
