Akums Drugs IPO Over-Subscribed 63 Times

New Delhi, Aug 1 (PTI) The initial public offer of Akums Drugs and Pharmaceuticals received 63.56 times subscription on the closing day of the share sale on Thursday amid massive participation from institutional buyers.

The Rs 1,875-crore initial share sale received bids for 96,36,79,134 shares against 1,51,62,239 shares on offer, as per the NSE data.

The quota for Qualified Institutional Buyers (QIBs) received 90.09 times subscription, while Non Institutional Investors portion got subscribed 42.21 times. The category for Retail Individual Investors received 21.30 times subscription.

The IPO is a combination of a fresh issue of equity shares worth Rs 680 crore and an offer-for-sale (OFS) of 1.73 crore shares valued at Rs 1,177 crore at the upper end of the price band by promoters and an existing investor.

Those selling shares in the OFS are Sanjeev Jain, Sandeep Jain and Ruby QC Investment Holdings Pte Ltd.

The public issue has a price range of Rs 646-679 per share.

Akums Drugs and Pharmaceuticals Ltd on Monday said it has collected Rs 829 crore from 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 acquisition, and for general corporate purposes.

Brokerage houses have pegged the company's market capitalisation at Rs 10,697 crore post-issue.

Founded in 2004, Akums is a pharmaceutical contract development and manufacturing organization (CDMO), offering a comprehensive range of pharmaceutical products and services in India and overseas.

As of September 30, 2023, key clients for the company's CDMO business include Alembic Pharmaceuticals, Alkem Laboratories, Cipla, Dabur India, Dr Reddy's Laboratories, Hetero Healthcare, Ipca Laboratories, Mankind Pharma, MedPlus Health Services, Micro Labs, Mylan Pharmaceuticals, Natco Pharma, Sun Pharmaceutical Industries, and Amishi Consumer Technologies (The Mom's Co).

The equity shares of the company are proposed to be listed on the BSE and NSE.