The initial public offering of Akums Drugs and Pharmaceuticals Ltd. was subscribed to 63.56 times on Thursday. It was subscribed to 4.43 times on its second day, led by demand from retail and non-institutional investors. The issue was fully subscribed to on day one.
The pharma major is looking to raise up to Rs 1,856.7 crore via a fresh issue of equity shares worth Rs 680 crore and an offer for sale of 1.73 crore shares by promoters and an existing investor.
The company has set a price range of Rs 646–679 per share for its IPO. Sanjeev Jain and Sandeep Jain are the promoters selling 15.1 lakh shares each, while Ruby QC Investment Holdings Pte will offload 1.43 crore shares under the OFS component.
The minimum lot size for bidding will be 22 shares, with further bids to be made in multiples. ICICI Securities Ltd, Axis Capital Ltd., Citigroup Global Markets India Pvt. and Ambit Pvt. are the book-running lead managers for the issue.
The company raised Rs 828 crore from anchor investors ahead of its IPO. It allotted 1.22 crore shares at Rs 679 apiece to 50 anchor investors.
Proceeds from the fresh issue will be used to repay debt, fund the working capital requirements of the company, pursue inorganic-growth initiatives through acquisitions, and for general corporate purposes.
Also Read: IPO Rush: Ola Electric, Akums Drugs Among 10 Issues To Hit Street This Week, Another 10 To List
Issue Details
Issue opens: July 30.
Issue closes: Aug. 1.
Issue price: Rs 646 to Rs 679 per share.
Total issue size: Rs 1,856.7 crore.
Bid lot: 22 shares.
Listing: BSE and NSE.
Business
The contract development and manufacturing organisation offers a comprehensive range of pharmaceutical products and services in India and overseas.
It owns the intellectual property for the manufacturing processes of several formulations, and their core business is focused on providing end-to-end product development and manufacturing solutions to clients.
Some of their other services include formulation research and development, preparation and filing of regulatory dossiers in the Indian and global markets. The company is also engaged in the manufacturing and sale of branded pharmaceutical formulations and active pharmaceutical ingredients.
Subscription Status: Day 3
The IPO has been subscribed 63.56 times as of 5:30 p.m. on Thursday.
Institutional investors: 90.09 times.
Non-institutional investors: 42.21 times.
Retail investors: 20.30 times.
Employee reserved: 4.27 times.
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