Akums Drugs IPO Day 1: Check Subscription Status, GMP, Review, Other Details Before Buying

Akums Drugs and Pharma IPO Subscription Day 1: The initial public offering (IPO) of Akums Drugs and Pharma is now open for subscription. The issue closes on August 1. The company plans to raise around Rs 1857 crore through the public offer. Here are 10 things to know about the Akums Drugs and Pharma IPO before subscribing to the issue.

Akums Drugs IPO subscription status

By 11:27 AM on day one of bidding, the book build issue had been booked 0.30 times, the retail portion had been subscribed 1.10 times, and the NII portion had been booked 0.36 times.

Akums Drugs IPO Price Band

The company’s main board IPO has a fixed price band of Rs 646 to Rs 679 per equity share

Akums Drugs IPO Date

The initial offer has opened today and will remain open till 1 August 2024.

Akums Drugs IPO size

The company aims to raise Rs 1,856.74 crore, of which Rs 1,176.74 crore is reserved for the Offer for Sale (OFS) route.

Akums Drugs IPO lot size

A bidder can apply for lots, and one lot comprises 22 company shares.

Akums Drugs IPO allotment date

Share allocation after the IPO bidding closes, can be expected on Friday, 2nd August 2024.

Akums Drugs IPO listing date

In the wake of the ‘T+3’ listing rule, we can expect Akums Drugs IPO listing on Tuesday, 6 August 2024.

What is the objective of Akums Drugs and Pharma IPO?

The net proceeds of the IPO will be utilized towards repayment of debt of the company and its subsidiaries, funding incremental working capital requirements, pursuing inorganic growth initiatives through acquisitions and general corporate purposes.

Akums Drugs is a pharmaceutical contract development and manufacturing organization offering a comprehensive range of pharmaceutical products and services in India and overseas. The company is also engaged in the sale of branded pharmaceutical formulations and manufacturing of active pharmaceutical ingredients.

ICICI Securities, Axis Bank, Citigroup Global Markets India, and Ambit Private are the book-running lead managers, while Link Intime India is the registrar for the issue.

What is the current GMP of Akums Drugs and Pharma?

According to market analysts, the current GMP of Akums Drugs and Pharma is Rs 180 in the unlisted market, indicating a premium of 26% to the issue price.

Should You Invest?

“The company’s put call liabilities for recent new contracts adjustments were mandated under GAAP measures due to the lack of additional funding support. Based on restated financial data, although the issue pricing seems aggressive, this perception changes if we exclude such accounting provisions,” said the broking house Anand Rathi in a research report.

Giving a ‘buy’ tag to the public issue, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “The company is in the CDMO business, and it is utilizing its maximum capacity. The company is keeping its buffer ahead of the order book, which is also good. The company has higher provisioning in the balance sheet, so its profitability looks small. If we leave the provisioning aside, the valuations of the public offer look attractive. One can apply for the Akums Drugs IPO for list gain.”