• Price Band fixed at  Rs. 646 to  Rs. 679 per equity share of face value of  Rs. 2 each (“Equity Share”).
• A discount of  Rs. 64 per Equity Share is being offered to Eligible Employees Bidding in the Employee Reservation Portion.
• The Bid /Offer Period will open on Tuesday, July 30, 2024 and close on Thursday, August 1, 2024. The Anchor Investor Bid/Offer Period opens and closes on Monday, July 29, 2024.
• Bids can be made for a minimum of 22 Equity Shares and in multiples of 22 Equity Shares thereafter.

MUMBAI, NATIONAL, 25 JULY, 2024 (GPN): Delhi based Pharma Company Akums Drugs and Pharmaceuticals Limited A prominent name in the Indian Pharmaceutical Company has come up with an IPO. The Initial Public Offer will open for subscription on July 30 at a price band of Rs 646 – 679 per equity share. The anchor bidding will open on July 29 and the offer will close on August 1.

The finalization of allotments will occur on August 2, with refunds initiated and equity shares credited on August 5. The company is scheduled to list on exchanges on August 6.

The IPO comprises of a fresh issue of Rs 680 crore and an offer for sale (OFS) of upto 1.73 crore by its existing shareholders and promoters. On the upper price band of the issue, the OFS is valued at Rs 1,177 crore and the total IPO size comes to Rs 1,857 crore. The firm’s total market value comes at Rs 10,000 crore.

Promoters Sanjeev Jain and Sandeep Jain will sell 15.12 lakh equity shares each in the OFS, while investor Ruby QC Investment Holdings Pte Ltd will offload 1.43 crore shares. The weighted average cost of acquisition for Ruby was Rs 231.64 per share.

Promoters hold 82.44 percent stake in the pharma company, 14.65 percent shares are held by Ruby QC Investment, while employee trusts own the remaining 2.91 percent shares.

The net fresh issue proceeds will be utilised for repaying the debts of the company and its subsidiaries (Maxcure Nutravedics and Pure and Cure Healthcare). Additionally, the IPO funds will be allocated for incremental working capital requirements and inorganic growth initiatives.

The company, which claimed to be the largest India-focused CDMO in terms of revenue, production capacity, and clients served during FY23, held a 30.2 percent market share of the Indian domestic CDMO market by value in fiscal 2024.

The Indian domestic CDMO market is anticipated to grow at a CAGR of 14.3 percent between FY24 and FY28, nearly doubling its historical growth rate. The market size is forecasted to reach $2.8 billion by FY28.

Akums operates 10 manufacturing units for the CDMO business, with a cumulative formulations manufacturing capacity of 49.23 billion units annually in FY24. Additionally, its new injectable facility is expected to become operational in fiscal 2025.

Further, not more than 15% of the Net Offer shall be available for allocation to Non-Institutional Bidders out of which (a) one third of such portion shall be reserved for applicants with application size of more than ₹200,000 and up to ₹1,000,000; and (b) two third of such portion shall be reserved for applicants with application size of more than ₹1,000,000, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Bidders and not more than 10% of the Net Offer shall be available for allocation to Retail Individual Bidders, in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price. All Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective ASBA accounts and UPI ID (in case of UPI Bidders) (as defined hereinafter), in which case the corresponding Bid Amounts will be blocked by the Self Certified Syndicate Banks (“SCSBs”) or under the UPI Mechanism, as applicable to participate in the Issue. Anchor Investors are not permitted to participate in the Anchor Investor Portion of the Offer through the ASBA process. For details, see “Offer Procedure” on page 472 of the RHP.

ICICI Securities, Axis Capital, Citigroup Global Markets India, and Ambit are the book running lead managers (BRLM’s) to the Akums Drugs IPO, while Link Intime India is the registrar to the offer.

The RHP shall be made available on the website of SEBI at www.sebi.gov.in, the website of the Company at www.akums.in, the websites of the Stock Exchanges i.e., BSE and NSE at www.bseindia.com and www.nseindia.com, respectively, and the websites of the BRLMs, i.e., ICICI Securities Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited and Ambit Private Limited at www.icicisecurities.com, www.axiscapital.co.in, www.online.citibank.co.in/rhtm/citigroupglobalscreen1.htm and www.ambit.co, respectively.