Akums Drugs IPO Sees 2.88x Subscription by Day 2, With Retail Investors Leading the Charge

Akums Drugs IPO: The Akums Drugs and Pharma IPO opened for subscription on Tuesday, July 30, and will close on Thursday, August 1. The ₹1,857 crore issue includes a fresh issuance of ₹680 crore and an offer-for-sale (OFS) of 17,330,435 equity shares by the promoters and other investors.

Akums Drugs IPO Subscription Status: Strong Investor Response on Second Bid Day

The initial public offering (IPO) of Akums Drugs and Pharmaceuticals continues to receive a strong response from investors on its second day, with the Nifty 50 poised to reach 25,000 levels in a bull market. As of 14:03 IST, Akums Drugs and Pharmaceuticals’ IPO has been subscribed 2.88 times, according to BSE data.

The retail investor quota has been subscribed 6.97 times, while the Non-Institutional Investors (NII) segment saw a 5.10 times subscription. The portion reserved for Qualified Institutional Buyers (QIBs) received 44% subscription, and the employee portion was subscribed 1.88 times.

The IPO has received bids for 4,37,25,308 shares against the 1,51,62,239 shares on offer, as per BSE data.

Investors demonstrated significant enthusiasm for the Akums Drugs and Pharmaceuticals IPO, which was fully subscribed on its opening day.

The retail segment of the Akums Drugs and Pharmaceuticals IPO was fully subscribed just an hour after it opened. The public subscription period runs from July 30 to August 1, with shares priced between ₹646 and ₹679 each. On Monday, the company announced it had secured ₹829 crore from anchor investors prior to the public subscription.

As of now, the IPO subscription status stands at 1.37 times overall. The retail investor component was subscribed 3.35 times, significantly higher than the non-institutional investor portion, which was subscribed 1.96 times. Qualified Institutional Buyers (QIBs) accounted for 43% of the subscriptions, and the employee portion received 1.07 times subscription.

The firm has allocated 75% of the issue size to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 10% to Retail Investors. Bidders can apply for a minimum of 22 equity shares and in multiples thereof.

Founded in 2004, Akums Drugs and Pharmaceuticals is a contract development and production organization (CDO) offering a broad range of pharmaceutical services and products both domestically in India and internationally.

As of September 30, 2023, the company’s major clients 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).

Akums Drugs and Pharmaceuticals IPO Details

The Akums Drugs and Pharmaceuticals IPO is valued at ₹1,857 crore, featuring a fresh issue of ₹680 crore and an offer-for-sale (OFS) of 17,330,435 equity shares by promoters and other investors.

In the offer-for-sale (OFS) portion of the IPO, Ruby QC Investment Holdings Pte Ltd will be selling 1.43 crore shares, while promoters Sanjeev and Sandeep Jain will each offload 15.12 lakh equity shares.

The net proceeds from the new issuance will be allocated to settling obligations of the company and its subsidiaries—Pure and Cure Healthcare, Maxcure Nutravedics, and Pure. Additionally, funds from the IPO will be used to support inorganic growth projects and meet increased working capital needs.

The book-running lead managers for the Akums Drugs and Pharmaceuticals IPO are ICICI Securities Ltd, Axis Bank Ltd, Citigroup Global Markets India Private Ltd, and Ambit Private Ltd. The registrar for the offering is Link Intime India Private Ltd.

Akums Drugs IPO GMP Today

As of today, the grey market premium (GMP) for the Akums Drugs and Pharmaceuticals IPO stands at +₹157. This means Akums Drugs shares are trading at a premium of ₹157 in the grey market, according to investorgain.com.

Based on the upper end of the IPO price band and the current grey market premium, the estimated listing price for Akums Drugs shares is projected to be ₹836 each. This represents a 23.12% increase over the IPO price of ₹679.

The ‘grey market premium’ reflects investors’ willingness to pay more than the issue price.