Akums Pharma Sets for INR 1,750 Cr IPO on July 30

The issue will open for subscription on July 30 and close on Aug. 1. The bidding for the anchor portion will open for a day on July 29.

India's pharmaceutical contract development and manufacturing organization (CDMO) giant, Akums, has announced the opening of its initial public offering (IPO) for trading on July 30, 2024.

The IPO is expected to raise INR 680 Cr in fresh capital through a total offering worth INR 1,750 Cr, which includes an offer for sale (OFS).

The company plans to utilize the net proceeds from the fresh issue of equity shares for the prepayment of debts, including those of its subsidiaries, Maxcure Nutravedics and Pure and Cure Healthcare.

Additionally, Akums will fund incremental working capital requirements and pursue inorganic growth initiatives through acquisitions.

About the IPO

Akums Drugs and Pharmaceuticals has set a price band of INR 646–679 per share for its upcoming IPO. This public offering consists of a fresh issue of equity shares worth INR 680 Cr and an OFS of 1.73 Cr shares by promoters and an existing investor.

Further, promoters Sanjeev Jain and Sandeep Jain are selling 151 Lakh shares each, while Ruby QC Investment Holdings Pte will offload 1.43 Cr shares under the OFS component.

The bid/offer period for the IPO will open on July 30, 2024, and close on August 1, 2024. The anchor investor bid/offer period is scheduled to open and close on July 29, 2024.

The minimum lot size for bidding will be 22 shares, with further bids to be made in multiples, according to the price band advertisement released by the company.

ICICI Securities Ltd, Axis Capital Ltd., Citigroup Global Markets India Pvt, and Ambit Pvt are the book-running lead managers for the issue.

The shares will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Akum’s Recent Developments

Days back, the pharmaceutical company launched a combination drug for gastrointestinal tract disorders.

Last year, Delhi Pharmaceutical Sciences and Research University, Govt of NCT of Delhi, and Akums joined hands to work on specific therapy gaps and develop novel products for Indian patients.

Founded in 2004 by the Jain brothers, Sanjeev Jain and Sandeep Jain, Akums Drugs & Pharmaceuticals is one of India’s largest companies in the contract research and manufacturing (CRAMS) sector.

It aims to provide comprehensive solutions for pharmaceutical companies, including formulation development, stability testing, regulatory approvals, packaging, and market launch. Going forward, it plans to venture into biosimilars and vaccines.

In 2024, Akums recorded sales of INR 3,266.48 Cr from its CDMO operations, accounting for 78% of its total sales. The remaining sales came from its branded generic segment (INR 699.31 Cr) and bulk drugs business (INR 212.51 Cr).