IPO Details
Bidding Dates
30 Jul 24 - 01 Aug 24
Price Range ₹
646 - 679
Total Equity
₹ 1858.30Cr
Lot Size
22
Exchange Status
BSE,NSE
IPO Doc
Subscription Rate
Non-Institutional Investor
21.30×
Qualified Institutional Buyers
90.09×
Employees
4.27×
Retail Investors
21.30×
Total subscription Rate
63.56×
IPO Timeline
Offer start
30 Jul 2024
Offer end
01 Aug 2024
Allotment
02 Aug 2024
Refund initiation
05 Aug 2024
Demat transfer
05 Aug 2024
Listing
06 Aug 2024
Offer start
30 Jul 2024
Offer end
01 Aug 2024
Allotment
02 Aug 2024
Refund initiation
05 Aug 2024
Demat transfer
05 Aug 2024
Listing
06 Aug 2024
About Company
Established in 2004, Akums Drugs and Pharmaceuticals Limited is a leading pharmaceutical contract development and manufacturing organization (CDMO) that offers a comprehensive range of pharmaceutical products and services in both India and international markets. The company primarily provides end-to-end solutions for product development and manufacturing, along with research and development (R&D) of formulations, preparation and submission of regulatory dossiers for Indian and global markets, and other testing services. Additionally, Akums is involved in the manufacture and sale of branded drugs and active pharmaceutical ingredients (APIs). As a CDMO, Akums produces a wide variety of dosage forms, including tablets, capsules, liquid medicines, vials, ampoules, blow-filled closures, topical preparations, eye drops, dry powder injections, and gummy bears, among others. To date, the company has commercialized 4,025 formulations across over 60 dosage forms. In the financial year 2023, Akums manufactured formulations for 26 of the top 30 pharmaceutical companies in India by revenue. The company operates 10 manufacturing units for its CDMO business, with a cumulative production capacity of 49.21 billion units annually as of September 30, 2023. Akums plans to expand its production capacity by commissioning two additional units for its CDMO business in FY 2025. Several of its production facilities have received accreditation from global regulatory bodies, including the European Good Manufacturing Practice (EU-GMP), the World Health Organization Good Manufacturing Practice (WHO-GMP), and the United States National Sanitation Foundation (US NSF). As of September 30, 2023, Akums Drugs and Pharmaceuticals employed a total of 16,463 people, including 7,211 full-time employees and 9,252 contract employees.
Year Founded
19-04-2004
Promotor Details
Promoter Holdings Details
| Particular | Pre-IPO | Post-IPO |
|---|---|---|
| Percentage | 82.48 | 75.26 |
| Share Capital | 121528880 | 118455380 |
Offer to Public
2,73,68,151.00 Cr
Project Details
- Funding incremental working capital requirements of our Company - 550cr
- Repayment/prepayment of all or certain borrowings of our Company - 1599.1cr
- Repayment/prepayment of all or certain borrowings of our Subsidiaries namely, Maxcure Nutravedics - 2270.9cr
- General corporate purposes - 1675cr
- Pursuing inorganic growth initiatives through acquisitions - 278.7cr
Objectives
- a. Repayment/ prepayment of indebtedness of our Company
- b. Repayment/ prepayment of indebtedness of our Subsidiaries namely, Maxcure Nutravedics Limited and Pure and Cure Healthcare Private Limited
- c. Funding incremental working capital requirements of our Company
- d. Pursuing inorganic growth initiatives through acquisitions
- ande. General corporate purposes.
Highlights
- With over 4,146 commercial formulations across more than 60 dosage forms, Akums demonstrates a robust product development capability, indicating strong R&D proficiency and a broad market reach.
- Operating 10 manufacturing facilities with a combined annual production capacity of 49.23 billion units, the company showcases significant production capabilities, ensuring it can meet large-scale demands efficiently.
- Serving 1,524 Indian and multinational clients, including top pharmaceutical companies and government entities, highlights the company’s strong market presence and reliability as a partner. The client base growth from 1,386 in 2022 to 1,524 in 2024 reflects the company’s ability to attract and retain customers.
- Exporting branded pharmaceutical formulations to 65 countries and having R&D units approved by the Department of Scientific and Industrial Research in India positions Akums as a globally compliant and competitive entity in the pharmaceutical industry.
- The inclusion of major pharmaceutical companies such as Alembic Pharmaceuticals, Alkem Laboratories, Cipla, Dabur India, and Dr. Reddy’s Laboratories as clients underscores the company’s credibility and strong industry relationships, which are crucial for sustained business growth and stability.
Challenges
- The company's operations and research facilities are primarily based in Haridwar, Uttarakhand. Changes in the business environment or regulatory landscape in the state could adversely affect the company's operations.
- Akums relies on a relatively small group of clients for a significant portion of its revenue. In FY22, FY23, and FY24, its top 10 clients contributed 41.27% (Rs 1,098.27 crore), 38.92% (Rs 1,059.75 crore), and 39.31% (Rs 1,284.11 crore) of revenue, respectively. The loss of any of these major clients could negatively impact the company's revenue and business stability.
- Akums, along with some of its promoters, subsidiaries, and directors, is involved in various legal proceedings. Adverse outcomes in these cases could potentially harm the company’s business operations and financial health.
- The company reported a financial loss of Rs 250.87 crore in FY22. This past financial performance could raise concerns about the company’s profitability and future financial stability.
- As of March 31, 2024, Akums had total indebtedness of Rs 493.89 crore. Difficulty in servicing or repaying these debts on time could have a negative impact on the company’s financial health and operational capabilities.
Financials
| Years | Total Assets | Share Capital | Profit After Tax | Consolidated Net Profit | Adjusted EPS |
|---|---|---|---|---|---|
| 2019 | 15,35,17,62,000.00 | 1,17,50,000.00 | 38,24,64,700.00 | 43,52,98,850.00 | 3.3679 |
| 2023 | 32,350.10 | 286.13 | 1,230.88 | 1,227.05 | 8.5742 |
| 2022 | 30,501.94 | 143.06 | 1,230.88 | 1,227.05 | 8.5742 |
| 2021 | 21,521.70 | 13.01 | -2,508.74 | -2,508.74 | -17.5363 |
| 2020 | 2,03,679.98 | 130.06 | 4,365.36 | 4,778.04 | 3.3397 |
