Akums Drugs and Pharmaceuticals IPO Fully Subscribed on First Day

The initial public offer (IPO) of Akums Drugs and Pharmaceuticals was fully subscribed on the first day, amassing bids for 2,07,92,684 shares against 1,51,62,239 on offer. The IPO combines a fresh issue of Rs 680 crore in equity shares and an offer-for-sale of 1.73 crore shares, concluding August 1.

The initial public offering (IPO) of Akums Drugs and Pharmaceuticals saw full subscription on its first day of the subscription period, which began on Tuesday.

The Rs 1,875-crore IPO garnered bids for 2,07,92,684 shares, exceeding the 1,51,62,239 shares available, translating to a 1.37 times subscription according to NSE data.

The subscription period will conclude on August 1. Retail Individual Investors (RIIs) subscribed at 3.35 times, Non Institutional Investors at 1.96 times, and qualified institutional buyers (QIBs) at 43 percent.

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

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

The IPO's price band is set at Rs 646 to Rs 679 per share. Akums has already raised Rs 829 crore from anchor investors.

Proceeds from the fresh issue will be used for debt repayment, working capital needs, acquisitions, and general corporate purposes.

Brokerages estimate Akums' post-IPO market capitalization at Rs 10,697 crore.

Founded in 2004, Akums is a leading CDMO offering pharmaceutical products and services in India and globally. Its key clients include Alembic Pharmaceuticals, Cipla, Dr Reddy's Laboratories, and others.

ICICI Securities, Axis Capital, Citigroup Global Markets India, and Ambit Pvt Ltd are managing the issue, and the shares are proposed to be listed on BSE and NSE.