Schedule of Akums Drugs and Pharmaceuticals
| Issue open date | 30 Jul 2024 |
| Issue close date | 01 Aug 2024 |
| UPI mandate deadline | 01 Aug 2024 (5 PM) |
| Allotment finalization | 02 Aug 2024 |
| Refund initiation | 05 Aug 2024 |
| Share credit | 05 Aug 2024 |
| Listing date | 06 Aug 2024 |
| Mandate end date | 16 Aug 2024 |
| Lock-in end date for anchor investors (50%) | 01 Sep 2024 |
| Lock-in end date for anchor investors (remaining) | 01 Nov 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar's website and the exchange website.
About Akums Drugs and Pharmaceuticals
Established in 2004, Akums Drugs and Pharmaceuticals is India’s largest pharmaceutical contract development and manufacturing organization (CDMO) by revenue, production capacity, and clients as of FY23 (Source: F&S Report). The company produces a broad range of dosage forms, including tablets, capsules, liquid orals, vials, ampoules, and more. In FY24, Akums held a 30.2% share of the Indian domestic CDMO market, up from 26.7% in FY21. Akums also markets its own branded formulations through its subsidiaries, Akumentis (India) and Unosource (global). The company has manufactured 4,146 commercialized formulations in over 60 dosage forms since its inception.
Operating 10 manufacturing units, with a capacity of 49.23 billion units annually as of March 31, 2024, some units meet EU-GMP, WHO-GMP, and US NSF standards. Notable clients include Alembic Pharmaceuticals, Cipla, Dabur India, Dr. Reddy’s Laboratories, Allegens (Vietnam), and Ambica International (Philippines). Akums serves 65 countries and has a robust domestic network of 1,532 personnel selling over 140 brands.
Financials of Akums Drugs and Pharmaceuticals
Issue size
| Funds raised in the IPO | Amount |
| Overall | ₹1856.74 crores |
| Fresh issue | ₹680 crores |
| Offer for sale | ₹1176.74 crores |
Utilisation of proceeds
| Purpose | INR crores (%) |
| Working capital requirements | 55 (8.09%) |
| Debt reduction | 159.91 (23.52%) |
| Debt reduction of subsidiaries | 227.09 (33.40%) |
| General corporate purposes | 238 (34.99%) |
*All figures except EPS are in ₹ crores
Strengths
- Largest CDMO in India: Akums is the leading India-centric CDMO by revenue, production capacity, and clients served in FY23 (Source: F&S Report), offering extensive capacity and R&D expertise to ensure steady supply and innovation.
- Diverse client base: As of March 31, 2024, Akums served 1,524 Indian and multinational clients, including pharmaceutical, nutraceutical, cosmo-derma, wellness, e-commerce companies, healthcare providers, and government entities.
- Strategic value chain presence: Akums spans the pharmaceutical value chain as a CDMO, formulation marketer, and API manufacturer, providing multiple growth opportunities and mitigating industry risks.
Risks
- Higher capex requirements: The company’s business requires significant capital expenditure. If it is unable to have access to capital, it may adversely affect its business, results of operations, cash flows, and financial condition.
- Regulatory risks: The company’s manufacturing units are subject to periodic inspections and audits by regulatory authorities and clients. The company may be subject to regulatory action which may damage its reputation leading to an adverse effect on the business, results of operations, financial condition, and cash flows.
- Negative cash flows from investing activities: The company has had negative cash flows from investing activities during the Financial Year 2024. Negative cash flows over extended periods, or significant negative cash flows in the short term, could affect the company’s ability to operate the business and implement its growth plans.