Akums Drugs and Pharmaceuticals IPO Receives Massive Institutional Backing

Akums Drugs and Pharmaceuticals' initial public offering (IPO) garnered 63.56 times subscription on its closing day, driven by strong demand from institutional buyers. The Rs 1,875 crore IPO included a fresh issue and an offer-for-sale. The company aims to use the proceeds for debt repayment and growth initiatives.

Akums Drugs and Pharmaceuticals' eagerly awaited initial public offering (IPO) drew an overwhelming response, securing 63.56 times subscription on its final day, predominantly fueled by institutional investors.

As per NSE data, the Rs 1,875-crore IPO witnessed bids for 96,36,79,134 shares compared to the 1,51,62,239 shares available. The Qualified Institutional Buyers (QIB) category was oversubscribed by 90.09 times, while Non Institutional Investors saw 42.21 times subscription and Retail Individual Investors' category received 21.30 times subscription.

The IPO comprised a fresh equity share issue worth Rs 680 crore and an offer-for-sale (OFS) of 1.73 crore shares valued at Rs 1,177 crore. Promoters Sanjeev Jain, Sandeep Jain, and Ruby QC Investment Holdings Pte Ltd sold their shares in the OFS. Akums collected Rs 829 crore from anchor investors, aiming to utilize the proceeds for debt repayment, working capital, acquisitions, and general corporate purposes. Post-issue, the company's market capitalization is estimated at Rs 10,697 crore.

(With inputs from agencies.)