Akums Drugs and Pharmaceuticals Limited IPO opened with tepid demand on the first day of bidding, today.

The public issue was subscribed 0.72 times by 1.10 pm today. The pharmaceutical contract development and manufacturing organisation’s initial public offering (IPO) received bids for more than 1.09 crore shares compared to 1.51 crore shares on offer, according to NSE data.

The retail category saw a subscription rate of 1.85 times, reflecting strong demand. Retail investors submitted bids for 50.06 lakh shares against 27.12 lakh shares on offer. 

The Non-Institutional Investors (NII) category had a subscription rate of 0.7 times. The company received bids for more than 28.67 lakh shares against 40.68 lakh shares available. 

The eligible employees subscribed to their allocation of 2,43,902 shares 0.65 times. 

The allocation of over 81.37 lakh shares reserved for Qualified Institutional Buyers (QIBs) was booked 0.36 times. The company recieved bids for more than 29.5 lakh shares in the category. 

Akums Drugs IPO offer size, price band, minimum investment, and dates

Akums Drugs IPO is a book-building issue worth Rs 1,856.74 crore. The public offer comprises entirely a fresh issue of 1 crore shares aggregating to Rs 680 crores and an offer for sale of 1.73 crore shares aggregating to Rs 1,176.74 crores.

The IPO price band has been fixed at Rs 646 to Rs 679 per share. The minimum lot size for an application is 22 shares, aggregating to an investment of Rs 14,938 

The issue includes a reservation of up to 2.43 lakh shares for employees, available at a discount of Rs 64 per share of the issue price.

The Akums Drug IPO subscription will close on August 1. The IPO allotment status is likely to be finalised on August 2. 

Refunds will be initiated for unsuccessful bidders on August 5 along with credit of shares in the demat accounts of successful bidders the same day. 

Shares of Akums Drug IPO are likely to be listed on the BSE and NSE platform, Emerge, on August 6.

Akums Drug and Pharmaceuticals IPO registrar

The registrar for Akums Drug IPO is Link Intime India Private Limited. 

The book-running lead managers for the issue are ICICI Securities Limited, Axis Bank Limited, Citigroup Global Markets India Private Limited and Ambit Private Limited.

About Akums Drug and Pharmaceuticals and the Objective of IPO

Akums Drugs and Pharmaceuticals Limited, established in 2004, is a leading pharmaceutical contract development and manufacturing organisation (CDMO) known for its comprehensive range of products and services both in India and internationally.

The company specialises in offering end-to-end solutions that encompass the entire product lifecycle. This includes product development, manufacturing, and extensive research and development (R&D) of pharmaceutical formulations. Akums is adept at preparing and submitting regulatory dossiers for both domestic and global markets, as well as providing other testing services.

The net proceeds of the IPO will be used for the repayment of debts and enhance overall stability. Funds will also be directed towards meeting the company’s working capital needs, supporting day-to-day operations, and ensuring smooth business continuity.

Further, the money raised will be used for strategic acquisitions and general corporate purposes.