Akums Drugs and Pharmaceuticals IPO: A Comprehensive Guide

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Akums Drugs and Pharmaceuticals IPO: A Comprehensive Guide

Akums Drugs and Pharmaceuticals IPO is a book built issue of Rs 1,856.74 crores.

July 27th, 2024 News

Introduction

Akums Drugs and Pharmaceuticals Limited, a prominent name in the pharmaceutical industry, is set to launch its Initial Public Offering (IPO). This guide provides an in-depth look into the details of the IPO, including its structure, timeline, and key financial metrics.

🗓️ IPO Schedule

Opens: July 30, 2024
Closes: August 1, 2024
Basis of Allotment: August 2, 2024
Initiation of Refunds: August 5, 2024
Credit of Shares to Demat: August 5, 2024
Listing Date: August 6, 2024

📊 Issue Breakdown

Total Issue Size: 27,345,162 shares (₹1,856.74 Cr)
Fresh Issue: 10,014,727 shares (₹680.00 Cr)
Offer for Sale: 17,330,435 shares (₹1,176.74 Cr)

IPO Details

Face Value: ₹2 per share
Price Band: ₹646 to ₹679 per share
Lot Size: 22 Shares

Reservation

QIB Shares Offered: Not less than 75% of the Net Offer
Retail Shares Offered: Not more than 10% of the Offer
NII (HNI) Shares Offered: Not less than 15% of the Offer

Lot Size

Investors can bid for a minimum of 22 shares and in multiples thereof. Below is the minimum and maximum investment by retail investors and HNIs:

Retail (Min): 1 lot (22 shares) = ₹14,938
Retail (Max): 13 lots (286 shares) = ₹194,194
S-HNI (Min): 14 lots (308 shares) = ₹209,132
S-HNI (Max): 66 lots (1,452 shares) = ₹985,908
B-HNI (Min): 67 lots (1,474 shares) = ₹1,000,846

💼 Company Overview

Established in 2004, Akums Drugs and Pharmaceuticals Limited is a leading contract development and manufacturing organization (CDMO) offering a wide range of pharmaceutical products and services. The company specializes in product development, manufacturing, R&D of formulations, regulatory dossier preparation, and testing services. Additionally, Akums manufactures branded drugs and active pharmaceutical ingredients (APIs).

Key Features

Product Range: Tablets, capsules, liquid medicines, vials, ampoules, blow-filled closures, topical preparations, eye drops, dry powder injections, gummy bears, etc.
Manufacturing Facilities: 10 units with a cumulative capacity of 49.21 billion units annually (as of September 30, 2023).
Expansion Plans: Two additional units for CDMO business to be commissioned in FY 2025.
Certifications: EU-GMP, WHO-GMP, US NSF.

Employee Overview

As of September 30, 2023, Akums employed 16,463 people, including 7,211 full-time employees and 9,252 contract employees.

💹 Financial Performance

Financial Information (Restated Consolidated)

Revenue Growth: 13.81% (FY 2024 vs FY 2023)
Profit After Tax (PAT): Dropped by -99.19% (FY 2024 vs FY 2023)

Key Financial Metrics (in ₹ Crore)

Period Ended	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	3,516.37	3,266.53	3,069.05
Revenue	4,212.21	3,700.93	3,694.52
Profit After Tax	0.79	97.82	-250.87
Net Worth	709.50	717.19	621.98
Reserves and Surplus	861.01	868.70	787.79
Total Borrowing	491.56	536.97	357.95

Key Performance Indicators (KPI)

ROE: 0.11%
ROCE: 3.37%
Debt/Equity: 0.69
RoNW: -0.57
P/BV: 13.69
PAT Margin: 0.02%

📈 Akums Drugs and Pharmaceuticals IPO Promoter Holding

Pre Issue: 84.94%
Post Issue: [Not specified]

🏢 Book Running Lead Managers and Registrar

Lead Managers: ICICI Securities Limited, Axis Bank Limited, Citigroup Global Markets India Private Limited, Ambit Private Limited
Registrar: Link Intime India Private Ltd

🏢 Objects of the Issue

Repayment/Prepayment of indebtedness of the company and its subsidiaries
Funding incremental working capital requirements
Pursuing inorganic growth initiatives through acquisitions
General corporate purposes

This IPO presents an opportunity for investors to become part of Akums Drugs and Pharmaceuticals Limited, a company with a strong foundation and significant growth potential in the pharmaceutical industry.