Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ) Review –
Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ) is set to open from 30th July 2024 to 1st Aug 2024. This article will analyze the financials , strengths and weaknesses of the Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ). Keep scrolling below to read more!
Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ) Overview –
Established in 2004, Akums Drugs and Pharmaceuticals Limited is a pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services in India and overseas.
The company primarily provides end-to-end solutions for product development and manufacturing as well as research and development (R&D) of formulations, preparation and submission of regulatory dossiers in the Indian and global markets and other testing services. The company is also engaged in the manufacture and sale of branded drugs and active pharmaceutical ingredients (APIs).
As a CDMO, the company manufactures a wide range of dosage forms including tablets, capsules, liquid medicines, vials, ampoules, blow-filled closures, topical preparations, eye drops, dry powder injections and gummy bears, to name a few.
The company has produced a total of 4,025 commercialized formulations in over 60 dosage forms. In the financial year 2023, the company manufactured formulations for 26 of the top 30 pharmaceutical companies in India in terms of revenue. For its CDMO business, the company operates 10 manufacturing units with a cumulative production capacity of 49.21 billion units annually (as of September 30, 2023).
The company plans to expand its production capacity with two additional production units for its CDMO business to be commissioned in FY 2025. Some of its production facilities have been accredited by various global regulatory bodies such as 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 had a total of 16,463 employees, including 7,211 full-time employees and 9,252 contract employees.
Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ) Synopsis-
Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ) is set to be open from 30th July 2024 to 1st Aug 2024, offering combination of fresh issue of 1 crore shares aggregating to Rs 680.00 crores and offer for sale(OFS) of 1.73 crore shares aggregatin to Rs 1262.83 crores. This NSE,BSE IPO follows a Book Built Issue IPO.
The total issue size of this IPO amounts to Rs. 1856.74 Crores. The company has allocated shares 10% to retail investors, 75% to institutional and 15% to non institutional investors.
| Particulars | Details |
| Opening Date | 30th July 2024 |
| Closing Date | 1st Aug 2024 |
| Lot Size | 22 Shares |
| Face Value | Rs. 2 |
| IPO Size | Rs. 1856.74 Cr |
| Fresh Issue | Rs. 680.00 Cr |
| IPO Price Range | Rs. 646 – 679 |
| Min. Investment | Rs. 14,938 |
| Offer for Sale (OFS) | Rs. 1176.74 Cr |
| Employee Discount | Rs 64 per share |
| Basis of Allotment | 2nd Aug 2024 |
| Refunds | 5th Aug 2024 |
| Listing Date | 6th Aug 2024 |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ) Market Lot
Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ) minimum market lot is 22 shares with ₹14,938 application amount. The retail investors can apply up-to 13 lots with 286 shares or ₹194,194 amount.
| Application | Lot Size | Shares | Amount |
| Retail Minimum | 1 | 22 | ₹14,938 |
| Retail Maximum | 13 | 286 | ₹194,194 |
| S-HNI Minimum | 14 | 308 | ₹209,132 |
| B-HNI Minimum | 67 | 1474 | ₹1,000,846 |
Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ) Book Running Lead Managers –
- ICICI Securities Limited
- Axis Bank Limited
- Citigroup Global Markets India Private Limited
- Ambit Private Limited
Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ) Registrar to the offer –
The registrar for the Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ) is Link Intime India Private limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
The Objective Of The Issue –
The company proposes to utilize the Net Proceeds from the IPO towards the achievement of the following objects:
- Repayment/ prepayment of indebtedness of the company and its Subsidiaries;
- Funding incremental working capital requirements of the company;
- Pursuing inorganic growth initiatives through acquisitions; and
- General corporate purposes.
Key Performance Indicator –
KPI as of March 31, 2024.
| Earning Per Share (EPS): Post IPO | ₹-0.28 per Equity Share |
| Price/Earning P/E Ratio: Post IPO | N/A |
| Return on Net Worth (RoNW): | -0.57% |
| PAT Margin(%) | 0.02% |
| Net Asset Value (NAV): | ₹49.59 per Equity Share |
Financial Status –
Here are some of key takeaways from financials of company for last 3 years; i.e., from FY22 to FY24, being latest year.
- Revenue Growth: Company experienced 13.81% increase in revenue from ₹3,700.93 crore in FY 2023 to ₹4,212.21 crore in FY 2024.
- Profit Decline: Profit after tax (PAT) dramatically dropped by 99.19%, from ₹97.82 crore in FY 2023 to just ₹0.79 crore in FY 2024.
- Asset Growth: Grew from ₹3,266.53 crore in FY 2023 to ₹3,516.37 crore in FY 2024.
- Net Worth: Decreased from ₹717.19 crore in FY 2023 to ₹709.50 crore in FY 2024.
- Reserves & Surplus: Declined from ₹868.70 crore in FY 2023 to ₹861.01 crore in FY 2024.
- Total Borrowing: Reduced from ₹536.97 crore in FY 2023 to ₹491.56 crore in FY 2024.
- Previous Performance: In FY 2022, company had loss of ₹250.87 crore, indicating significant turnaround in profitability by FY 2023, despite drop in FY 2024.
| Particulars(in Rs. Crores) | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
| Revenue From Operations | 4212.21 | 3700.93 | 3694.52 |
| PAT | 0.79 | 97.82 | -250.87 |
| Net Worth | 709.50 | 717.19 | 621.98 |
| Total Assets | 3516.37 | 3266.53 | 3069.05 |
| Total Borrowings | 491.56 | 536.97 | 357.95 |
Evaluation of P/E Ratio
The P/E Ratio of Akums Drugs and Pharmaceuticals Limited is N/A.
Comparative Analysis with Listed Peers
The average P/E Ratio of the industry is N/A.
Peers of Akums Drugs and Pharmaceuticals Limited –
Akums Drugs and Pharmaceuticals Limited peer comparison with similar listed entities. (As on March 31, 2024)
| Company Name | EPS (Basic) | NAV (per share) (Rs) | P/E | RoNW (%) | P/BV | Financial statements |
|---|---|---|---|---|---|---|
| Akums Drugs and Pharmaceuticals Limited | -0.28 | 49.59 | -0.57 | 13.69 | Consolidated | |
| Divi’s Laboratories | 60.27 | 60.37 | 18.65 | 12.49 | 2.33 | Consolidated |
| Suven Pharmaceuticals Limited | 11.80 | 123.63 | 73.31 | 2.30 | 1.69 | Consolidated |
| Gland Pharma Limited | 46.90 | 321.75 | 15.01 | 9.94 | 1.49 | Consolidated |
| Torrent Pharmaceuticals Ltd. | 48.94 | 202.57 | 60.20 | 24.15 | 14.54 | Consolidated |
| Alkem Laboratories Ltd | 150.19 | 862.46 | 34.18 | 17.41 | 5.95 | Consolidated |
| Eris Lifesciences Ltd | 28.82 | 190.12 | 34.95 | 15.16 | 5.29 | Consolidated |
| JB Chemicals | 35.66 | 188.37 | 51.38 | 18.90 | 9.51 | Consolidated |
| Mankind Pharma Limited | 47.75 | 233.73 | 44.65 | 20.43 | 8.80 | Consolidated |
| Innova Captab Limited | 18.66 | 145.20 | 29.91 | 11.35 | 3.84 | Consolidated |
Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ) Strengths –
- Largest India-focused CDMO in terms of revenue, production capacity and clients in FY23, with a market share of 30% by value in the Indian domestic CDMO market as of FY24.
- As of 31 March 2024, the diverse client base comprises 1,524 Indian and multinational pharmaceutical and wellness companies.
- Longstanding relationship with clients with repeat orders from 38 of its 50 largest clients in the last five years as of FY24.
- Large R&D capabilities with 1,448 trademarks across various dosage forms and formulations, 927 DCGI approvals, and five patents as of 31 March 2024. It has also received approval for 923 formulations from FSSAI.
- Strategic presence across 65 countries in the globe with 289 dossiers under registration as of FY24.
Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ) Weakness –
- Exposed to economic, regulatory, political, or other risks related to the geographical concentration of its manufacturing facilities in Uttarakhand.
- Some of its raw materials are imported from China, and so do its domestic suppliers, which may be disrupted by the imposition of new rules, regulations, or directives.
- Incurred a loss of ₹250 crore in FY22 pertaining to fair value changes to financial instruments of ₹494 crore in FY22.
- Has consistently experienced negative cash flows from investing activities in the last three financial years.
- Operates in a market subjected to extensive regulation and requires compliance with the Air Act, the Water Act, the waste management legislation, the Hazardous Waste Rules, the E-waste Rules, and the BioMedical Waste Management Rules, 2016, amongst other things.
Akums Drugs and Pharmaceuticals Limited IPO ( Akums Drugs and Pharmaceuticals IPO ) GMP Today –
IPO’s last GMP is ₹201, last updated Jul 29th 2024. With the price band of 679.00, IPO’s estimated listing price is ₹880(cap price + today’s GMP). The expected percentage gain/loss per share is 29.60%.
Note : The GMP prices shown here are only news related to the grey market. We do not trade/deal in grey market or subject to rates, nor do we recommend trading in grey market.
Conclusion –
Hope the details presented in this blog will assist you in learning about the financial performance of the company. Before making an investment in the company’s upcoming initial public offering (IPO), thoroughly research the company, its finances, business prospects, and market trends.
Also, investors should consult their financial advisor, conduct further due diligence, analyze industry trends and the competitive landscape, and consider risk factors before making an investment decision.
For all such latest information on upcoming IPOs, keep visiting our website.
