Akums Drugs and Pharmaceuticals Limited is coming up with an IPO worth INR 1,856.74 crores, consisting of a fresh issue of shares worth INR 680 crores and an offer to sell existing shares worth INR 1,176.74. The company aims to reduce debt, fund working capital, pursue acquisitions, and support corporate purposes.
Akums Drugs and Pharmaceuticals IPO – Important Dates
| Akums Drugs and Pharmaceuticals IPO Date | July 30, 2024 to August 1, 2024 |
| Akums Drugs and Pharmaceuticals IPO Listing Date | August 6, 2024 |
| Akums Drugs and Pharmaceuticals IPO Price | INR 646-679 per share |
| Akums Drugs and Pharmaceuticals IPO Lot Size | 22 Shares |
| Akums Drugs and Pharmaceuticals IPO Total Issue Size | INR 1,865.74 crores |
| Akums Drugs and Pharmaceuticals IPO Basis of Allotment | August 2, 2024 |
| Akums Drugs and Pharmaceuticals IPO Initiation of Refunds | August 5, 2024 |
| Akums Drugs and Pharmaceuticals IPO Credit of Shares to Demat | August 5, 2024 |
| Akums Drugs and Pharmaceuticals IPO Issue Type | Book Built Issue IPO |
| Akums Drugs and Pharmaceuticals IPO Listing At | BSE, NSE |
Akums Drugs and Pharma IPO – Company Profile
Akums Drugs and Pharmaceuticals Limited, established in 2004, is a leading CDMO in India offering comprehensive pharmaceutical products and services, including formulation R&D, regulatory dossier preparation, testing, and manufacturing branded formulations and APIs.
They are India’s largest CDMO by revenue, capacity, and clients, holding a 30.2% market share in 2024, producing 4,146 formulations across 60 dosage forms, with ten manufacturing units and global regulatory accreditations.
They maintain strong client relationships, including Alembic Pharmaceuticals and Cipla, with repeat orders from 38 of their 50 most prominent clients. Long-term clients demonstrate their consistency, reliability, expertise, and cost efficiencies.
Akums Drugs and Pharmaceuticals Ltd IPO Fundamental Analysis
Akums Drugs and Pharmaceuticals Limited’s financial analysis reveals a mixed performance. Revenue decreased, while equity and liabilities increased. Profitability improved, reflected in higher PAT and RoNW. EPS declined, but total assets grew, indicating business expansion.
- Revenue Trend: The revenue decreased from ₹36,718.93 million in March 2022 to ₹36,548.20 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR million, falling short of the previous year’s annual benchmark.
- Equity and Liabilities: Liability has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has increased, indicating rising reliance on debt financing.
- Profitability: The profit after tax (PAT) has decreased from ₹(2,508.74) million in March 2022 to ₹7.90 million by March 2024. The rise in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also decreased from ₹(17.65) in March 2022 to ₹(0.28) by March 2024, reflecting lower earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from (40.60)% to (0.57)%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth.
Akums Drugs and Pharma IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in Million) | 36,718.93 | 36,548.20 | 41,781.82 |
| Equity (₹ in Million) | 6,251.71 | 7,233.74 | 7,204.86 |
| Expenses (₹ in Million) | 576.77 | 524.80 | (460.68) |
| Profit and Loss After Tax (₹ in Million) | (2,508.74) | 978.17 | 7.90 |
| RoNW (%) | (40.60) | 13.23 | (0.57) |
| NAV per Equity Share (₹) | 43.48 | 50.13 | 49.59 |
| Diluted EPS only (₹) | (17.65) | 6.63 | (0.28) |
| Total Assets (in millions) | 30,690.48 | 32,665.27 | 35,163.65 |
| Total Liabilities (in millions) | 24,438.77 | 25,431.53 | 27,958.79 |
| Debt Equity Ratio | 0.58 | 0.75 | 0.69 |
Akums Drugs and Pharmaceuticals Limited IPO Peer Comparison
Akums Drugs and Pharmaceuticals, Divi’s Laboratories, Suven Pharma, Gland Pharma, Torrent Pharma, Alkem Laboratories, Eris Lifesciences, JB Chemicals, Mankind Pharma, and Innova Captab show varied financial metrics, highlighting differences in profitability, EPS, RoNW, and total assets.
| Company | Operating revenue (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Akums Drugs and Pharmaceuticals | 41,781.82 | 2 | – | (0.28) | (0.28) | (0.57) | 49.59 |
| Divi’s Laboratories | 78,450.00 | 2 | 74.99 | 60.27 | 60.27 | 11.79 | 511.21 |
| Suven Pharma | 10,513.54 | 1 | 69.54 | 11.80 | 11.80 | 14.64 | 80.56 |
| Gland Pharma | 56,647.22 | 1 | 42.45 | 46.90 | 46.89 | 8.85 | 529.65 |
| Torrent Pharma | 107,280.00 | 5 | 60.20 | 48.94 | 48.94 | 24.15 | 202.57 |
| Alkem Laboratories | 126,675.80 | 2 | 34.18 | 150.19 | 150.19 | 17.41 | 862.46 |
| Eris Lifesciences | 20,091.43 | 1 | 34.95 | 28.82 | 28.79 | 15.16 | 190.12 |
| JB Chemicals | 34,841.80 | 1 | 51.38 | 35.66 | 34.85 | 18.90 | 188.37 |
| Mankind Pharma | 103,347.74 | 1 | 44.65 | 47.75 | 47.68 | 20.43 | 233.73 |
| Innova Captab | 10,813.05 | 10 | 29.91 | 18.66 | 29.91 | 11.35 | 145.20 |
Akums Drugs and Pharmaceuticals Ltd IPO Objective
The main objective of Akums Drugs and Pharmaceuticals Limited is to repay/prepay its own and its subsidiaries’ indebtedness, fund incremental working capital requirements, and pursue inorganic growth initiatives through acquisitions.
- Repayment/prepayment of all or certain borrowings of the Company and Subsidiaries: The company intends to utilize INR 387 crores from the Net Proceeds to repay/prepay loans, aiming to reduce indebtedness, improve the debt-equity ratio and support further business growth, expansion, and favorable future financing opportunities.
- Funding incremental working capital requirements of the company: The company plans to utilize ₹448.46 crores for fund-based and INR 45.43 crores for non-fund-based working capital needs, aiming to increase profitability and achieve business targets for Fiscal 2025 through this additional funding.
- Pursuing inorganic growth initiatives through acquisitions: The company aims to use Net Proceeds for strategic acquisitions over three years, enhancing scale, product portfolio, geographic reach, and market share while improving profitability, leveraging synergies, and adhering to regulatory compliance.
- General corporate purpose: The company plans to use the net proceeds for general corporate purposes, including meeting fund requirements, strengthening marketing and brand building, handling contingencies, and covering operational expenses such as salaries, rent, and technology upgrades.
Akums Drugs and Pharmaceuticals IPO Risks And Challenges
Akums Drugs and Pharmaceuticals Limited’s risk includes economic, regulatory, and natural disaster impacts on operations, vulnerability to disruptions from power outages or machinery breakdowns, and potential order cancellations or breaches due to manufacturing or quality issues.
- Their manufacturing units and R&D centers in Haridwar, Uttarakhand, face risks from economic, regulatory, and political changes and natural disasters in the region, potentially impacting their business operations, results, and financial condition.
- As seen with recent flood damage, their operations are vulnerable to disruptions from power outages, natural disasters, or machinery breakdowns. Such issues can significantly impact manufacturing, R&D, and financial performance despite existing insurance coverage.
- Manufacturing or quality control issues or delivery delays could lead to order cancellations, breaches, and terminations of agreements, adversely impacting the business, results, financial condition, and cash flows.
Akums Drugs and Pharmaceuticals Ltd IPO – Industry & Market Potential
The global pharmaceutical market, valued at USD 1,634.8 billion in 2023, is projected to grow to USD 2,119.0 billion by 2027. Growth drivers include chronic disease prevalence, an aging population, and increased health awareness.
The Indian pharmaceutical market’s growth is driven by government support, rising chronic diseases, affordable generics, and improved healthcare access. It contributed 1.3% to India’s GDP, with a 9.0% CAGR recently and a forecasted 9.6% growth.
The Indian CDMO market is fragmented and consolidating. Akums is the largest domestic-focused CDMO, capturing a 30.2% market share by value in FY24. Consolidation trends are driven by capacity expansion and strategic acquisitions.
Akums Drugs and Pharmaceuticals Limited IPO – Type of Offer
Akums Drugs and Pharmaceuticals Limited plans a fresh issue of shares, seeking INR 680 crores to repay outstanding loans and general corporate needs. Additionally, the company proposes an offer for sale, intending to sell existing shares worth INR 1,176.74 crores.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 680 crores. The company intends to utilize the proceeds from the fresh issue to reduce debt, fund working capital, pursue acquisitions, and support corporate purposes.
- Offer for sale: Akums Drugs and Pharmaceuticals Limited is offering to sell existing shares worth INR 1,176.74 crores. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Sanjeev Jain | 1,512,000 |
| Sandeep Jain | 1,512,000 |
Akums Drugs and Pharmaceuticals IPO Offer Size
The offer size of Akums Drugs and Pharmaceuticals Limited is INR 1,856.74 crores, consisting of a fresh issue of shares worth INR 680 crores and an offer to sell existing shares worth INR 1,176.74 crores. The company seeks funds to reduce debt, fund working capital, pursue acquisitions, and support corporate purposes.
Akums Drugs and Pharma IPO Allotment Structure
Akums Drugs and Pharmaceuticals Limited’s allocation will be as follows: 75% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 10% for Retail Individual Investors (RII) in accordance with SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs
How to apply for the Akums Drugs and Pharmaceuticals IPO?
To apply for the Akums Drugs and Pharmaceuticals IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Akums Drugs and Pharmaceuticals IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Akums Drugs and Pharmaceuticals Limited’s IPO at Alice Blue [M1] in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Akums Drugs and Pharmaceuticals IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Akums Drugs and Pharmaceuticals IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Akums Drugs and Pharmaceuticals IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended that you contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Akums Drugs and Pharmaceuticals IPO:
Registrar’s Website: Visit the website of Link In Time India Private Limited, the registrar of the Akums Drugs and Pharmaceuticals IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) official websites. You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Akums Drugs and Pharmaceuticals Ltd IPO Offer Registrar
The registrar for the Akums Drugs and Pharmaceuticals IPO is Link In Time India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link In Time India Private Limited
C 101, 247 Park, L.B.S. Marg
Vikhroli (West), Mumbai –400 083
Maharashtra, India
Telephone: 022 4918 620087
Email: [email protected]
Website: www.linkintime.co.in
Akums Drugs and Pharma IPO FAQs
1. What is the allotment date of the Akums Drugs and Pharmaceuticals IPO?
The allotment date of the Akums Drugs and Pharmaceuticals is August 2, 2024.
2. What is the price band of the Akums Drugs IPO?
The price band of the issue is INR 646-679 per share.
3. What is the size of the Akums Drugs and Pharma IPO?
The offer size of Akums Drugs and Pharmaceuticals Limited is INR 1,856.74 crores, consisting of a fresh issue of shares worth INR 680 crores and an offer to sell existing shares worth INR 1,176.74 crores. The company seeks funds to reduce debt, fund working capital, pursue acquisitions, and support corporate purposes.
4. What is the listing date of the Akums Drugs and Pharmaceuticals IPO?
The listing date of Akums Drugs and Pharmaceuticals is August 6, 2024.
