Akums Drugs And Pharma IPO - Investment Rationale, Issue Details, Financials, Risks And More: IDBI Capital

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Akums Drugs And Pharmaceuticals Ltd. will launch its initial public offering on July 30 and close on Aug. 1. The largest CDMO serving Indian market in terms of manufacturing capacity has set a price band of Rs 646-679 per share. The minimum lot size for bidding will be 22 shares..The Rs 1,856.74 crores IPO comprises of fresh issue of equity shares worth Rs 680 crore and an offer for sale of 1.73 crore shares. .Object of the issue debt repayment and funding of incremental working capital requirements..Competitive StrengthsLargest contract development manufacturing organisation serving Indian pharmaceutical Industry.Diverse client base with longstanding CDMO relationships.Large and rapidly growing R&D capabilities across its product portfolio.Strategic presence across the pharmaceutical value chain..Summary Akums is one of the leading CDMOs in India and owns the intellectual property for the manufacturing processes of several of its formulations and the core business is focused on providing end to end product development and manufacturing solutions to its clients. We adjust for the fair value changes since the put option liability of the Company for buy back stands extinguished as per Shareholders agreement with Quadria capital. Adjusting for the fair value changes, the company is valued at 29.8 times FY24 (post equity) earnings which is at a discount to its listed peer Innova Captab which trades at 38 times FY24 earnings. Also Akums possesses size and scale benefits compared to its competitors meriting a higher multiple. In light of the same we ascribe Subscribe rating to the issue..Key Risks Protracted slowdown in outsourcing work by major clients.Any major quality issues faced in the products.Any crucial delays in the supply chain with regard to critical raw material or intermediate products.Higher than anticipated increase in key input prices..Click on the attachment to read the full IPO report:.Akums Drugs And Pharmaceuticals IPO: All You Need To Know.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Akums Drugs And Pharma IPO - Investment Rationale, Issue Details, Financials, Risks And More: IDBI Capital

The Rs 1,856.74 crores IPO will open for subscription on July 30, and the company has fixed price band in the range of Rs 646-679 Apiece.

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Akums Drugs And Pharma IPO - Investment Rationale, Issue Details, Financials, Risks And More: IDBI Capital

The Rs 1,856.74 crores IPO will open for subscription on July 30, and the company has fixed price band in the range of Rs 646-679 Apiece.

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