Akums Drugs and Pharma shares to list on Tuesday. Here's what GMP suggests
Akums Drugs and Pharmaceuticals will debut on Tuesday. The stock, with a GMP of Rs 140, is expected to list at a 21% premium over the upper price band of Rs 679. The IPO was oversubscribed 63.5 times, and analysts suggest it’s reasonably valued.
By Akash Podishetti, ETMarkets.com |
ETMarkets.com
The shares of Akums Drugs and Pharmaceuticals are set to debut on the exchanges on Tuesday.
Ahead of the listing, the stock is trading with a GMP (Grey Market Premium) of Rs 140. Given the upper price band of Rs 679, the stock is expected to list at a 21% premium. The IPO was well-received, with an overall subscription of 63.5 times.
Analysts recommended subscribing to the IPO, noting that it is available at reasonable valuations.
Additionally, the company is the largest Contract Development and Manufacturing Organization (CDMO) serving the Indian pharmaceutical industry. It boasts an established track record and a diverse client base.
The net proceeds of the IPO will be used for repaying or prepaying the company’s and its subsidiaries' debt, funding incremental working capital needs, pursuing acquisitions for inorganic growth, and general corporate purposes.
Akums Drugs and Pharmaceuticals is a CDMO, offering a comprehensive range of pharmaceutical products and services in India and overseas.
The company carries out operations across the pharmaceutical value chain, operating as a CDMO, marketer of formulations, and manufacturer of APIs.
The growth of the Indian pharmaceutical market is supported by increasing chronic patient populations, higher insurance penetration, the rise of trade generics, demand from tier II and III cities, and government schemes aimed at improving drug access.
CDMO helps pharmaceutical companies adopt an asset-light model, access global and specialized expertise, and keep up with rapid innovation.
In FY24, the company’s revenue from operations grew 14% year-on-year to Rs 4,178 crore, up from Rs 3,655 crore in the previous financial year. However, profit after tax dropped significantly to Rs 79 lakh, compared to Rs 97.8 crore the previous year.
Axis Capital, ICICI Securities, Citigroup Global Markets India, and Ambit were the book-running lead managers to the issue, while Link Intime India was the registrar.
Ahead of the listing, the stock is trading with a GMP (Grey Market Premium) of Rs 140. Given the upper price band of Rs 679, the stock is expected to list at a 21% premium. The IPO was well-received, with an overall subscription of 63.5 times.
Analysts recommended subscribing to the IPO, noting that it is available at reasonable valuations.
Additionally, the company is the largest Contract Development and Manufacturing Organization (CDMO) serving the Indian pharmaceutical industry. It boasts an established track record and a diverse client base.
The net proceeds of the IPO will be used for repaying or prepaying the company’s and its subsidiaries' debt, funding incremental working capital needs, pursuing acquisitions for inorganic growth, and general corporate purposes.
Akums Drugs and Pharmaceuticals is a CDMO, offering a comprehensive range of pharmaceutical products and services in India and overseas.
ADVERTISEMENT
The company carries out operations across the pharmaceutical value chain, operating as a CDMO, marketer of formulations, and manufacturer of APIs.
The growth of the Indian pharmaceutical market is supported by increasing chronic patient populations, higher insurance penetration, the rise of trade generics, demand from tier II and III cities, and government schemes aimed at improving drug access.
CDMO helps pharmaceutical companies adopt an asset-light model, access global and specialized expertise, and keep up with rapid innovation.
In FY24, the company’s revenue from operations grew 14% year-on-year to Rs 4,178 crore, up from Rs 3,655 crore in the previous financial year. However, profit after tax dropped significantly to Rs 79 lakh, compared to Rs 97.8 crore the previous year.
ADVERTISEMENT
Axis Capital, ICICI Securities, Citigroup Global Markets India, and Ambit were the book-running lead managers to the issue, while Link Intime India was the registrar.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
