Akums Drugs IPO Fully Subscribed on Day 1

The IPO, which opened on Tuesday with a price band of INR 646-679, saw a subscription rate of 1.37 times by the end of Day 1.

The initial public offering (IPO) of Akums Drugs and Pharmaceuticals has been fully subscribed on its opening day.

The IPO, which opened on Tuesday with a price band of INR 646-679, saw a subscription rate of 1.37 times by the end of Day 1.

Promoters Sanjeev and Sandeep Jain are set to sell 15.12 Lakh equity shares each, while Ruby QC Investment Holdings will offload 1.43 Cr shares in the OFS.

The IPO lot size is 22 equity shares, with multiples of 22 thereafter, and it will close on August 1. Against an issue size of about 1.52 Cr shares (excluding the anchor portion), the IPO received bids for 2.08 Cr shares.

The proceeds from the fresh issue will be used for repaying or prepaying indebtedness, funding incremental working capital requirements, pursuing inorganic growth initiatives through acquisitions, and for general corporate purposes.

The IPO Details

The initial offer will remain open till 1 August 2024.

A bidder can apply for lots, and one lot comprises 22 company shares.

Share allocation after the IPO bidding closes can be expected on Friday, 2nd August 2024.

In the wake of the ‘T+3’ listing rule, we can expect Akums Drugs IPO listing on Tuesday, 6 August 2024.

Further, the pharmaceutical company has reserved up to 75% of the public issue for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs), and at least 10% for retail investors.

Retail investors showed significant interest, with their portion subscribed 3.35 times. The HNI portion was subscribed 1.96 times, and the employee quota was subscribed 1.07 times. The QIB portion has been subscribed 0.45 times so far.

Moreover, eligible employees bidding in the employee reservation portion are offered a discount of INR 64 per equity share.

Coming to anchor investors, Akums Drugs has raised INR 828.8 Cr from them as part of the IPO.

Notable global investors such as Blackrock, Smallcap World Fund, Abu Dhabi Investment Authority, HSBC Global, Florida Retirement System, Carmignac Portfolio, and Neuberger Berman Emerging Markets Equity Fund have bought 33.5 Lakh equity shares worth INR 227.5 Cr in the anchor window.

Additionally, domestic mutual funds and institutions including SBI Mutual Fund, Aditya Birla Sun Life Trustee, Franklin India, Templeton India, DSP India Fund, IIFL Asset Management, Tata Mutual Fund, Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Edelweiss Trusteeship, PGIM India, and JM Financial Mutual Fund also participated.

Founded in 2004, Akums is a leading contract development and manufacturing organization (CDMO) in India, holding intellectual property for several manufacturing processes. Akums offers over 4,000 formulations, 60 dosage forms, and 18,500 SKUs.

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