Akum Drugs IPO:  Akum Drugs and Pharmaceuticals Ltd stated on Thursday that it has fixed a price range of Rs 646 to Rs 679 per share to raise Rs 1,857 crore through an initial public offering (IPO). The preliminary share sale for public subscription will open on July 30 and conclude on August 1, and the bid for anchor investors will open for one day on July 29, the company declared.

Akum Drug's IPO is a fresh issue of equity shares worth Rs 680 crore and the promoter and an existing investor in an offer for sale (OFS) of 1.73 crore shares worth Rs 1,177 crore in the upper portion of the promoter and incumbent one.
The sellers of OFS shares are Sanjeev Jain, Sandeep Jain, and Ruby QC Investment Holdings Pvt Ltd. The company has reserved shares worth Rs 15 crore for employees in the public offering.

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The proceeds from the fresh issue will be utilized to repay debt, for the Company’s working capital requirements, to undertake inorganic growth initiatives through acquisitions, and for general corporate purposes. The brokerage firm values the company's market capitalization at Rs 10,697 crore following the issue. Seventy-five percent of the issue size is reserved for eligible institutional buyers, 15% for non-institutional investors, and the remaining 10% for retail investors, the company stated.

Investors may bid for a minimum of 22 equity shares and in multiples thereof.

Akums, which was established in 2004, is a Drug Contract Development and Manufacturing Organization (CDMO) that provides a wide range of pharmaceutical products and services in India and overseas.

Key customers for the Company's CDMO business as of September 30, 2023 include Alembic Pharmaceuticals, Alkem Laboratories, Cipla, Dabur India, Dr. Reddy's Laboratories, Hetero Healthcare, Ipka Laboratories, Mankind Pharma, MedPlus Health Services, Micro Lay Bosch, Mylan Pharmaceuticals, Natco Pharma, Sun Pharmaceutical Industries, and Amishi Consumer Technologies (The Moms Co).

ICICI Securities, Axis Capital, Citigroup Global Markets India, and Ambit Pvt Ltd are the lead managers running the books for the issue.

(With PTI's INPUT)

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