Delhi-based Akums Drugs and Pharmaceuticals Ltd has set a price band of Rs 646-679 a share for its initial public offering that will open for subscription on July 30. The anchor bidding will open on July 29 and the offer will close on August 1.
The finalization of allotments will occur on August 2, with refunds initiated and equity shares credited on August 5. The company is scheduled to list on exchanges on August 6.
The IPO consists of a fresh issue of Rs 680 crore and an offer for sale of upto 1.73 crore by its existing shareholders and promoters. On the upper price band of the issue, the OFS is valued at Rs 1,175 crore and the total IPO size comes to Rs 1,855 crore. The firm's total market value comes at Rs 10,000 crore.
Promoters Sanjeev Jain and Sandeep Jain will sell 15.12 lakh equity shares each in the OFS, while investor Ruby QC Investment Holdings Pte Ltd will offload 1.43 crore shares. The weighted average cost of acquisition for Ruby was Rs 231.64 per share.
Promoters hold 82.44 percent stake in the pharma company, 14.65 percent shares are held by Ruby QC Investment, while employee trusts own the remaining 2.91 percent shares.
The net fresh issue proceeds will be utilised for repaying the debts of the company and its subsidiaries (Maxcure Nutravedics and Pure and Cure Healthcare). Additionally, the IPO funds will be allocated for incremental working capital requirements and inorganic growth initiatives.
The company, which claimed to be the largest India-focused CDMO in terms of revenue, production capacity, and clients served during FY23, held a 30.2 percent market share of the Indian domestic CDMO market by value in fiscal 2024.
The Indian domestic CDMO market is anticipated to grow at a CAGR of 14.3 percent between FY24 and FY28, nearly doubling its historical growth rate. The market size is forecasted to reach $2.8 billion by FY28.
Akums operates 10 manufacturing units for the CDMO business, with a cumulative formulations manufacturing capacity of 49.23 billion units annually in FY24. Additionally, its new injectable facility is expected to become operational in fiscal 2025.
ICICI Securities, Axis Capital, Citigroup Global Markets India, and Ambit are the book running lead managers to the Akums Drugs IPO, while Link Intime India is the registrar to the offer.
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