Akums Drugs IPO Opens Above 6% Premium

On August 6, Drugs & Pharmaceuticals Shares listed at a premium of 6.7% over the issue price of ₹679, which is at ₹724.9683 but they had a sluggish start on the market, post listing the stock jumped to 8% to Rs 784.6 on Tuesday.

The Akums Drugs and Pharmaceuticals IPO, totaling ₹1,856.74 crores, features a combination of a fresh issue of 1 crore shares worth ₹680 crores and an offer for sale of 1.73 crore shares amounting to ₹1,176.74 crores. Bidding for this IPO occurred from July 30 to August 1, 2024, with allotment finalized on August 2, 2024. The IPO is set to list on both BSE and NSE on August 6, 2024. The price band is fixed between ₹646 and ₹679 per share, with a minimum lot size of 22 shares. Retail investors need to invest a minimum of ₹14,938, while small and big Non-Institutional Investors (sNII and bNII) must invest ₹209,132 and ₹1,000,846 respectively. 

Employees can apply for up to 243,902 shares at a ₹64 discount per share. ICICI Securities, Axis Bank, Citigroup, and Ambit are the book-running lead managers, with Link Intime as the registrar. The IPO allocates 27,368,151 shares: 12,205,912 (44.60%) to Anchor Investors, 8,137,276 (29.73%) to Qualified Institutional Buyers (QIB), 4,068,637 (14.87%) to Non-Institutional Investors (NII), 2,712,424 (9.91%) to Retail Individual Investors (RII), and 243,902 (0.89%) to employees. The IPO raised ₹828.78 crores from anchor investors on July 29, 2024, with a lock-in period for 50% of the shares ending on September 1, 2024, and the remaining shares locked in until October 31, 2024.

The funds from the IPO will be utilized to pay down the company's debt and that of its subsidiaries, increase working capital, finance acquisitions to expand the business, and pay for other general corporate expenses. In the fiscal year that concluded on March 31, 2024, Akums saw a revenue gain of 13.81 percent. But as compared to the prior year, the company's profit after tax (PAT) significantly decreased by 99.19 percent.

Check Akums Drugs IPO Subscription Status on Day 3

To Summarize

The IPO of Akums Drugs & Pharma consists of an offer-for-sale (OFS) component of 1.73 crore shares, valued at ₹1,177 crore, and a fresh issue of shares valued at ₹680 crore, which together are led by promoters Sandeep and Sanjeev Jail and investor Ruby QC Investment Holdings Pte Ltd.