Akums Drugs IPO sees strong retail interest, subscribed 4.4X on day 2

Akums Drugs IPO has already garnered substantial interest from anchor investors, raising Rs 828.78 crore.

On July 31, the second day of bidding for Akums Drugs and Pharmaceuticals Ltd's IPO, the issue was subscribed 4.4 times overall. Retail Individual Investors (RIIs) were the most active, subscribing to 9 times their allocated share. Non-institutional investors (NIIs) followed with nearly 8.5 times their portion, while Qualified Institutional Buyers (QIBs) subscribed to nearly 1 times their quota. The employee segment saw a subscription of 2.2 times.

The IPO, which aims to raise Rs 1,856.74 crore, will close for subscription on August 1, with shares expected to debut on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on August 6.

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The IPO comprises a fresh issue of 1 crore shares valued at Rs 680 crore, alongside an offer for sale of 1.73 crore shares amounting to Rs 1,176.74 crore. The price band for the shares is set between Rs 646 and Rs 679 each.

The IPO has already garnered substantial interest from anchor investors, raising Rs 828.78 crore. The anchor bid date was set for July 29.

The proceeds from the IPO will be directed towards repaying company and subsidiary debts, enhancing working capital, pursuing growth through acquisitions, and addressing general corporate needs.

Also Read | Akums Drugs and Pharmaceuticals mobilises Rs 829 crore via anchor book, IPO opens on July 30

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

Founded in 2004, Akums Drugs and Pharmaceuticals operates as a prominent pharmaceutical contract development and manufacturing organisation (CDMO). It also manufactures and sells branded drugs and active pharmaceutical ingredients (APIs).

For the fiscal year ending March 31, 2024, Akums reported a 13.81 percent increase in revenue. However, the company faced a dramatic 99.19 percent decline in profit after tax (PAT) compared to the previous year.

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