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The initial public offering (IPO) of Akums Drugs and Pharmaceuticals, a leading pharmaceutical contract development and manufacturing organization (CDMO), was met with strong demand, achieving full subscription on its first day of issuance. The IPO, which seeks to raise Rs 1,875 crore, witnessed enthusiastic participation from various investor categories, underscoring the confidence in the company's growth prospects.
The IPO received bids for 2,07,92,684 shares against the 1,51,62,239 shares on offer, resulting in a subscription rate of 1.37 times, according to NSE data. Retail Individual Investors (RIIs) demonstrated significant interest, oversubscribing their quota by 3.35 times. Non-Institutional Investors (NIIs) also showed considerable appetite, subscribing 1.96 times their allocated portion. The Qualified Institutional Buyers (QIBs) portion, however, received a relatively lower subscription of 43%.
The IPO comprises 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. The promoters, Sanjeev Jain, Sandeep Jain, and Ruby QC Investment Holdings Pte Ltd, are selling their shares through the OFS. The price range for the public issue is set between Rs 646 and Rs 679 per share.
Ahead of the IPO launch, Akums Drugs and Pharmaceuticals Ltd successfully raised Rs 829 crore from anchor investors, demonstrating strong investor confidence. The proceeds from the fresh issue will be allocated towards various strategic initiatives, including repayment of debt, funding the company's working capital requirements, pursuing inorganic growth opportunities through acquisitions, and general corporate purposes.
Founded in 2004, Akums Drugs and Pharmaceuticals has established itself as a prominent CDMO, offering a wide range of pharmaceutical products and services both domestically and internationally. The company's strong track record, extensive product portfolio, and commitment to innovation have attracted significant investor interest, making the IPO a highly anticipated event in the pharmaceutical sector.
The IPO's strong performance indicates a positive outlook for the company's future growth. As a leading player in the CDMO space, Akums is well-positioned to capitalize on the growing demand for pharmaceutical contract services. The funds raised from the IPO will enable the company to expand its operations, invest in new technologies, and further strengthen its market position.
Source: Akums Drugs and Pharmaceuticals IPO fully subscribed on first day of issue