Akums Drugs and Pharmaceuticals' initial public offering (IPO) begins on Tuesday, July 30, and subscriptions are accepted through Thursday, August 1.
Price band
The pharmaceutical company plans to sell its shares for a set price between Rs 646 and Rs 679 per share. A minimum of 22 equity shares and their multiples thereafter are up for bid.
Stake offload
The IPO of Akums Drugs and Pharma consists of an offer-for-sale (OFS) of up to 1,73,30,435 equity shares by its promoters and current shareholders, amounting to Rs 1,176.74 crore at the upper end of the price band, and a fresh share sale component worth Rs 680 crore. Through an IPO, the company hopes to raise a total of Rs 1,856.74 crore.
Purpose of cash generated from IPO
The net proceeds from the offering will be used for general corporate purposes, inorganic growth initiatives through acquisitions, working capital requirements that arise, and the repayment or prepayment of the company's and its subsidiaries' debt. On Monday, July 29, the issue's anchor book will go up for auction.
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Company's Financial
For the six months ended September 30, 2023, Akums Drugs and Pharma reported revenue of Rs 2,166.01 crore and a net loss of Rs 154.75 crore.
In the fiscal year 2022–2023, the company brought in Rs 3,700.93 crore in revenue and made a net profit of Rs 97.82 crore.
Share allocation for each category
For its qualifying employees, Akums Drugs and Pharma has reserved shares worth Rs 15 crore; these employees will receive a discount of 64 per share.
Non-institutional investors (NIIs) will receive 15 per cent of the net offer, with the remaining 75 per cent reserved for qualified institutional bidders (QIBs). The remaining ten percent of the net offer will go to retail investors.
Company's product offerings
A variety of dosage forms are produced by Akums Drugs and Pharma, including gummy bears, dry powder injections, topical preparations, eye drops, vials, ampoules, tablets, capsules, and liquid medications, to mention a few. The business has created 4,025 commercialized formulations in more than 60 dosage forms.
26 of the top 30 pharmaceutical companies in India based on revenue for the fiscal year 2023 were supplied with formulations by Akums Drugs and Pharma. With a combined yearly production capacity of 49.21 billion units, the company runs 10 manufacturing facilities for its CDMO business.
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