Akums Drugs and Pharmaceuticals IPO listing tomorrow: Here’s what GMP, subscription status hint ahead of listing

Akums Drugs and Pharmaceuticals IPO listing date has been scheduled for tomorrow (Tuesday, August 6). Akums Drugs IPO allotment was finalised on Friday, August 2. For those who have been allocated shares, the crediting of shares to demat accounts will occur today, Monday, August 5. The process of refunding those who have not yet received their shares will likewise be finished today.

On the last day of bidding today, qualified institutional buyers and non-institutional investors led the robust reaction to Akums Drugs and Pharmaceuticals Ltd's initial public offering. According to BSE data, Akums Drugs and Pharmaceuticals IPO subscription status was 63.44 times. Retail investors subscribed to the quota 20.80 times, while non-institutional investors subscribed 42.10 times. The employee portion was booked 4.14 times, while the section designated for Qualified Institutional Buyers (QIBs) received subscriptions 90.09 times.

The offer's public subscription period, which started on July 30 and ended on Thursday, August 1, was closed. The pricing range for the issue was fixed at ₹646– ₹679. The business said that it has secured ₹829 crore from anchor investors ahead to the opening of the public subscription period for its share sale.

75% of the issue size has been set aside by the firm for qualified institutional buyers, while 15% for non-institutional investors and 10% for retail investors. Investors can bid for a minimum of 22 equity shares and in multiples thereof.

Akums was established in 2004 as a pharmaceutical contract development and production organisation (CDO). It provides an extensive range of pharmaceutical goods and services both locally in India and internationally.

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) are a few of the company's principal clients as of September 30, 2023.

Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd stated that despite pressure in the market, we believe Akums Drugs can list with a decent debuting gains in the range of 10-15% on the issue price.

Akums Drugs IPO grey market premium

Let's check what does Akums Drugs and Pharmaceuticals IPO GMP today signal ahead of listing.

Akums Drugs IPO GMP today or grey market premium is +58. This indicates Akums Drugs share price were trading at a premium of ₹58 in the grey market, according to investorgain.com.

Akums Drugs expected listing price was suggested at ₹737 per share, 8.54% more than the IPO price of ₹679, taking into account the top end of the IPO pricing band and the present premium on the grey market.

Grey market activity over the previous 13 sessions indicates that the current GMP ( ₹58) is trending downward. Analysts at investorgain.com estimate that the lowest GMP is ₹0 and the maximum GMP is ₹211.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Akums Drugs and Pharmaceuticals IPO details

Akums Drug IPO, which is worth ₹1,857 crore, comprises a fresh issue of ₹680 crore, and an offer-for-sale (OFS) of 17,330,435 equity shares by the promoters and other investors.

In the OFS, investors Ruby QC Investment Holdings Pte Ltd would be offloading 1.43 crore shares, while promoters Sanjeev and Sandeep Jain will each sell 15.12 lakh equity shares.

The net proceeds from the new issuance will be used to pay off the company's and its subsidiaries' (Pure and Cure Healthcare, Maxcure Nutravedics, and Pure) obligations. The proceeds from the IPO will also be used for inorganic growth projects and 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.

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