Akums Drugs and Pharmaceuticals Limited IPO: A Comprehensive Analysis

  • Issue Open Date: July 30, 2024
  • Issue Close Date: August 1, 2024
  • Price Band: ₹646 and ₹679 per equity share.
  • Issue Size: ₹1,856.74 crores, comprising both fresh issue and OFS components.
  • Minimum Order Quantity: 22 shares.
  • Allotment: Friday, August 2, 2024.
  • Listing:The shares are proposed to be listed on both BSE and NSE.
  • Lead Manager: Kfin Technologies Limited is the registrar for the IPO.
  • OFS Participants: Promoters Sanjeev Jain and Sandeep Jain, along with Ruby QC Investment Holdings Pte Ltd, are participating in the OFS.
IPO Open Date:July 30, 2024
IPO Close Date:August 1, 2024
Basis of Allotment:August 2, 2024
Refunds:August 5, 2024
Credit to Demat Account:August 5, 2024
IPO Listing Date:August 6, 2024

Akums Drugs and Pharmaceuticals Limited is a prominent player in the Indian pharmaceutical landscape, specializing in the contract development and manufacturing organization (CDMO) model. Established in 2004, the company has grown significantly to offer a comprehensive range of pharmaceutical products and services.

Core Business:

  • Contract Development and Manufacturing Organization (CDMO): Akums provides end-to-end solutions for product development, manufacturing, and research and development (R&D) of formulations, preparations, and active pharmaceutical ingredients (APIs).
  • Product Range: Their portfolio encompasses a wide range of pharmaceutical products, including anti-infectives, analgesics, anti-malarials, and anti-allergics.

Market Presence:

  • Akums has a substantial presence in both domestic and international markets.
  • The company boasts a strong distribution network to ensure wide reach and accessibility for its products.

Focus on Quality and Compliance:

  • Akums is committed to maintaining stringent quality standards and regulatory compliance. Their manufacturing facilities adhere to global benchmarks like WHO-GMP, US FDA, and UK MHRA.

Future Outlook:

  • Akums is poised to benefit from the growing Indian pharmaceutical market and the increasing demand for contract manufacturing services.
  • Their focus on R&D and product development suggests a strategic approach to stay competitive and expand their product portfolio.

Key Points to Remember:

  • Akums is a significant player in the Indian pharmaceutical industry.
  • Their CDMO model offers a comprehensive range of services.
  • The company has a global presence and a focus on quality and compliance.

The Company proposes to utilise the Net Proceeds towards funding the following objects:

  • Repayment/ prepayment of indebtedness of the company and its Subsidiaries;
  • Funding incremental working capital requirements of the company;
  • Pursuing inorganic growth

POSITIVE

  • Strong presence in both domestic and international markets
  • Diversified product portfolio with a focus on high-growth segments
  • Robust R&D capabilities and a commitment to innovation
  • Experienced management team with a proven track record

NEGATIVE

  • Intense competition in the pharmaceutical industry
  • Regulatory challenges and pricing pressures
  • Dependence on a few key products and customers
  • Global economic uncertainties and geopolitical risks

So,How Does Akums Drugs and Pharmaceuticals Limited IPO Fare in Terms of Financials ?

Financial Details

Period Ended31 Mar 202431 Mar 202331 Mar 2022
Assets3,516.373,266.533,069.05
Revenue4,212.213,700.933,694.52
Profit After Tax0.7997.82-250.87
Net Worth709.50717.19621.98
Reserves and Surplus861.01868.70787.79
Total Borrowing491.56536.97357.95
Amount in ₹ Crore

Akums Drugs and Pharmaceuticals Limited IPO Valuation :

KPIValues
ROE0.11%
ROCE3.37%
Debt/Equity0.69
RoNW-0.57
P/BV13.69
PAT Margin (%)0.02

Akums Drugs and Pharmaceuticals Limited IPO – SWOT Analysis

Strengths

  • Strong brand recognition and reputation
  • Diversified product portfolio and presence in high-growth segments
  • Robust R&D capabilities and innovation pipeline

Weaknesses

  • Dependence on a few key products and customers
  • Limited global presence compared to peers
  • Regulatory challenges and pricing pressures

Opportunities

  • Growing demand for pharmaceuticals in India and globally
  • Increasing focus on healthcare and wellness
  • Expansion into new markets and segments

Threats

  • Intense competition and pricing pressures
  • Regulatory challenges and changes in government policies
  • Global economic uncertainties and geopolitical risks

COMPETITIVE ANALYSIS: MARKET PEERS

  • Sun Pharmaceutical Industries Limited
  • Cipla Limited
  • Lupin Limited
  • Dr. Reddy’s Laboratories Limited
  • Aurobindo Pharma Limited

Akums Drugs and Pharmaceuticals Limited IPO GMP

  • Grey market premium as on DD-MM-YYYY = Rs / Share

Disclaimer:

  • IPO Grey Market Premium (Akums Drugs and Pharmaceuticals Limited IPO GMP) mention is valid for the specific date as mentioned in the header.
  • We are not buying and selling IPO forms on IPO Grey Market.
  • Don’t decide to subscribe to an IPO just based on the initial price, as it can change before the listing.Subscribe only considering Fundamentals of the companies.

30/07/2024 10:00 AM

NO OF SHARES OFFEREDDay 1Day 2Day 3
Qualified Institutional Buyers(QIBs)
Non Institutional Investors(NIIs)
Retail Individual Investors(RIIs)
Employee
Total

FINAL TAKEAWAY

May Apply

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Happy investing!🤩

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