Akums Drugs IPO subscribed 4.43 times on second day, retail investors lead the charge; check GMP

The initial public offering (IPO) of Akums Drugs and Pharmaceuticals has garnered significant attention, being subscribed 4.43 times by the end of the second day of bidding. The IPO, which opened on Tuesday, July 30, and closes on Thursday, August 1, is valued at ₹1,857 crore. It comprises a fresh issue of ₹680 crore and an offer-for-sale (OFS) of 17,330,435 equity shares by the company's promoters and other investors.

Strong investor response

As per the data from the Bombay Stock Exchange (BSE), the IPO has seen a strong response across different investor categories:

Retail Investors: The retail portion has been subscribed 8.98 times, showcasing robust interest.

Non-Institutional Investors (NIIs): This segment saw a subscription rate of 8.48 times.

Qualified Institutional Buyers (QIBs): The QIB portion was subscribed 96%.

Employee Category: The portion reserved for employees was subscribed 2.23 times.

Overall, the IPO received bids for 6,72,02,850 shares against the 1,51,62,239 shares on offer.

Grey market premium (GMP)

The Grey Market Premium (GMP) for Akums Drugs and Pharmaceuticals IPO stands at +₹157. This indicates that the shares are trading at a premium of ₹157 in the grey market. Given the upper end of the IPO price band at ₹679, the estimated listing price is around ₹836 per share, which reflects a 23.12% premium.

IPO details

Price Band: The price band for the IPO is set between ₹646 and ₹679 per share.

Anchor Investors: Akums secured ₹829 crore from anchor investors before the public subscription period began.

Use of Proceeds: The funds raised from the fresh issue will be used to repay debts of the company and its subsidiaries, fund inorganic growth initiatives, and meet working capital requirements.

About Akums Drugs

Founded in 2004, Akums Drugs and Pharmaceuticals is a contract development and manufacturing organization (CDMO) serving both domestic and international markets. The company boasts an impressive client list, including major pharmaceutical players like Alembic Pharmaceuticals, Cipla, Dr. Reddy's Laboratories, and Sun Pharmaceutical Industries.

Lead managers and registrars

The IPO is being managed by ICICI Securities Ltd, Axis Bank Ltd, Citigroup Global Markets India Private Ltd, and Ambit Private Ltd. Link Intime India Private Ltd is the registrar for the offering.

With strong demand from retail investors and a positive GMP, Akums Drugs and Pharmaceuticals IPO appears to be a promising investment opportunity. However, as always, potential investors are advised to consult with certified financial experts before making any investment decisions.