The initial public offering of Akums Drugs and Pharmaceuticals will close for public subscription today.
The IPO that opened on Tuesday, received a robust response from retail and non-institutions (HNIs), with the issue being subscribed over 4.43 times.
The ₹1,856.74-crore IPO in a price band of ₹646-679, is a mix of fresh issue worth ₹680 crore and an offer-for-sale of 1.73 crore shares worth ₹1,176.74 crore by the existing shareholders. Promoters Sanjeev and Sandeep Jain would sell 15.12 lakh equity shares each, while investors Ruby QC Investment Holdings Pte Ltd will offload 1.43 crore shares in the OFS.
The lot size is 22 equity shares and in multiples of 22 equity shares thereafter, and IPO closes on August 1.
As against an issue size of about 1.52 crore shares (net of anchor portion), the IPO received bids for 6.72 crore shares.
The company has reserved not more than 75 per cent of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 per cent for Non-institutional Institutional Investors (NII), and not less than 10 per cent of the offer is reserved for retail investors.
Retail investors were more aggressive, as their portion was subscribed 8.98 times, followed by HNIs was subscribed 8.48 times and that of employees by 2.23 times. The QIB or institutions portion was almost covered fully (subscribed 0.96 times or 96 per cent).
Employee discount
A discount of ₹64 per equity share is being offered to eligible employees bidding in the employee reservation portion (about 2.44 lakh shares).
The New Delhi-based pharma company has raised ₹828.8 crore from several anchor investors as part of the IPO. Prominent global investors such as Blackrock, Smallcap World Fund, Abu Dhabi Investment Authority, HSBC Global, Florida Retirement System, Carmignac Portfolio and Neuberger Berman Emerging Markets Equity Fund bought 33.5 lakh equity shares worth ₹227.5 crore in the anchor window.
Domestic MFs and institutions such as SBI Mutual Fund, International Growth Fund and Income Fund, Aditya Birla Sun Life Trustee, Franklin India, Templeton India, DSP India Fund, IIFL Asset Management, Tata Mutual Fund, Motilal Oswal Mutual Fund, Bandhan Mutual Fund, Edelweiss Trusteeship, PGIM India and JM Financial Mutual Fund also participated in the anchor book.
Akums Drugs informed exchanges that it has finalised allocation of 1,22,05,912 equity shares to anchor investors at the upper price band of ₹679 a share.
The Company proposes to utilise net proceeds from the fresh issue towards repayment/ prepayment of indebtedness of the company; repayment/ prepayment of indebtedness of its subsidiaries namely, Maxcure Nutravedics Ltd and Pure and Cure Healthcare Pvt Ltd; funding incremental working capital requirements of the company; pursuing inorganic growth initiatives through acquisitions; and general corporate purposes.
Established in 2004, Akums is one of the country’s leading CDMOs 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. Akums manufacturing capacity stands at 49.2 billion units.
Akums has 30.2 per cent market share in the Indian domestic CDMO market by value. The company has 10 manufacturing facilities with 2 more facilities expected to be added, along worth four R&D centres. Their portfolio comprises of 4000+ formulations, 60+ dosage forms and 18500+ SKUs manufactured in FY24. The company has size and scale benefits over its peers in terms of number of manufacturing facilities, customer relationships and R&D strength.
ICICI Securities Ltd, Axis Bank Ltd, Citigroup Global Markets India Private Ltd, and Ambit Private Ltd are the book-running lead managers for the Akums Drugs and Pharmaceuticals IPO. Link Intime India Private Ltd is the offering’s registrar.