Akums Drugs and Pharmaceuticals Ltd IPO: One of India’s largest pharmaceutical agreement improvement and production organisations (CDMOs) is Akums Drugs, which has struck the eyes of many buyers lately. This article analyses the IPO with recognition of employer financials, strengths, weaknesses and addresses a few often requested questions on it to assist buyers give you their choices.
Table of Contents
Akums Drugs and Pharmaceuticals Ltd IPO: Company Overview
Akums Drugs & Pharmaceuticals Ltd. (ADPL) is a large participant withinside the pharmaceutical agreement improvement and production corporation (CDMO) sector. With a sturdy consciousness at the nearby market, the corporation offers an in-depth variety of pharmaceutical services and products each nationally and internationally. The agency has highbrow assets rights to supply numerous formulations and gives its customers complete product improvement and manufacturing offerings from begin to end.
Key Services Offered: by Akums Drugs and Pharmaceuticals Ltd IPO
- Formulation Research and Development (R&D): ADPL’s Research and development capacities incorporate the improvement of an expansive exhibit of measurements structures and definitions.
- Regulatory Dossiers:Creating and submitting regulatory dossiers on Indian and international markets.
- Manufacturing: Various dosage forms are manufactured, including tablets, capsules, liquid orals, vials, ampoules, blow-filled seals, and topical formulations.
Market Position
ADPL is the largest revenue-earning India-based CDMO, in terms of clients served and production capacity during FY 2023. The company has ten manufacturing units, which cumulatively produce formulations at a rate of 49.23 billion units per annum by March 31, 2024. It serves varied customers like 26 top 30 Indian pharma companies based on sales volume.
Key Achievements:
- Market Share: boosted its share of the domestic market from 26.7% in FY21 to 30.2% in FY24.
- Product Portfolio: crafted 4,146 commercially available formulations in more than 60 dosage forms.
- Global Presence: through its subsidiaries Akumentis and Unosource, established a presence in 65 nations.
Client Relationships
ADPL has maintained good relationships with its clients for a long time, which is a sign of high quality products and services. This was the case by the date of March 31, 2024 when it was recorded that 26 out of 50 largest customers by revenue have been working as partners with them over ten years ago. It showcases ADPL’s consultancy, devotion, know-how and cost effectiveness in satisfying customer requirements.
Notable Clients:
- Alembic Pharmaceuticals
- Alkem Laboratories
- Blue Cross Laboratories
- Cipla
- Dabur India
- Dr. Reddy’s Laboratories
- Hetero Healthcare
- Mankind Pharma
- Sun Pharmaceutical
- UCB
- Amishi Consumer Technologies (The Mom’s Co)
Akums Drugs and Pharmaceuticals Ltd IPO Details
The Initial public offering of Akums Medications and Drugs Ltd. comprises of a new value share issue worth ₹680.00 crores and a Proposal available to be purchased (OFS) of 17,330,435 value shares, collecting to an all out issue size of ₹1,856.74 crores. The following are the key subtleties:
| Particulars | Details |
| Price Band | ₹646-₹679 per share |
| Subscription Dates | July 30, 2024 – August 1, 2024 |
| Anchor Investor Allocation | July 29, 2024 |
| Minimum Application | 22 shares |
| Listing | BSE and NSE |
| Post-IPO Paid-up Equity Capital | ₹31.47 crores |
| Market Cap Post-IPO | ₹10,685.49 crores |
| Lead Managers | ICICI Securities, Axis Capital, Citigroup, Ambit |
Use of Proceeds
The net proceeds from the fresh equity issue will be utilised for the following purposes:
- Repayment/Prepayment of Certain Borrowings: ₹159.91 crores for the company and ₹227.09 crores for its subsidiaries.
- Working Capital: ₹55.00 crores.
- General Corporate Purposes: Remaining funds.
Equity Allocation
The organisation has saved value shares worth ₹15 crores for its qualified representatives, offering them a markdown of ₹64 per share. The excess offers are designated as follows:
- Qualified institutional buyers (QIBs): At least 75%
- High Net-worth Individuals (HNIs): Not more than 15%
- Retail Investors: Not more than 10%
Akums Drugs and Pharmaceuticals Ltd history
The firm has released its first ownership stocks for a standard amount as well as more stocks ranging from ₹4.00 up to ₹5,096.17 per single stock (depending on ₹2 face value) during the time between December in the year 2004 and May in the year 2024. In addition, it has also given away bonus equities at a ratio of ten for one in December 2021 and one for one in March 2023. For those who founded the company or are selling their shares, the average price paid for each one of them stands at ₹231.64 each.
Financial Performance
Consolidated Financial Summary (₹ in million)
| Particulars | FY 2024 | FY 2023 | FY 2022 |
| Revenue | 41,781.82 | 36,548.20 | 36,718.93 |
| EBITDA | 1,570.10 | 3,840.55 | (690.89) |
| Net Profit/Loss | 7.90 | 978.17 | (2,508.74) |
| Equity Share Capital | 286.13 | 286.13 | 143.07 |
| Net Worth | 7,204.86 | 7,233.74 | 6,251.71 |
| Total Borrowings | 782.97 | 1,154.96 | 133.33 |
Sure! Here is the revised version: Even with the provisions of Put Option calls from EBITDA causing financial strain, ADPL has displayed tenacity and planned expansion. The company reported a net profit of ₹358.56 crores during FY24 after taking into consideration these obligations.
Comparison with Listed Peers
ADPL offers various references for assessment in its offering document, although they cannot be comparatively analysed on a similar basis. The following table shows how selected listed peers compare against each other:
| Company | EPS (Basic) | NAV | P/E | Total Income (₹ in million) | RoNW (%) |
| Akums Drugs & Pharmaceuticals | (0.28) | 49.59 | – | 41,781.82 | (0.57)% |
| Divi’s Laboratories | 60.27 | 511.21 | 74.99 | 78,450.00 | 11.79% |
| Suven Pharma | 11.80 | 80.56 | 69.54 | 10,513.54 | 14.64% |
| Gland Pharma | 46.90 | 529.65 | 42.45 | 56,647.22 | 8.85% |
| Torrent Pharma | 48.94 | 202.57 | 60.20 | 107,280.00 | 24.15% |
| Alkem Laboratories | 150.19 | 862.46 | 34.18 | 126,675.80 | 17.41% |
| Eris Lifesciences | 28.82 | 190.12 | 34.95 | 20,091.43 | 15.16% |
| JB Chemicals | 35.66 | 188.37 | 51.38 | 34,841.80 | 18.90% |
| Mankind Pharma | 47.75 | 233.73 | 44.65 | 103,347.74 | 20.43% |
| Innova Captab | 18.66 | 145.20 | 29.91 | 10,813.05 | 11.35% |
Strengths
Extensive Product Portfolio
Since its inception Akums Drugs and Pharmaceuticals has developed more than 4,146 commercial formulations in over 60 dosage forms. This diverse portfolio highlights the firm’s ability to meet various pharmaceutical demands thus improving its market standing.
Robust Client Base
ADPL is one of the leading pharmaceutical manufacturers in India, serving 26 out of the largest 30 companies according to sales figures in FY24. The company’s contract development and manufacturing organisation (CDMO) segment has a client base of 1,524 diverse firms such as pharmaceuticals, nutraceuticals, cosmo-derma, wellness firms along with e-commerce businesses and healthcare providers as well as various government institutions across both central and state domains.
Strong R&D Capabilities
Akums Drugs and Pharmaceuticals carries out four research and development (R&D) units , two thereof sanctioned by the Department of Scientific and Industrial Research under the Science and Technology Ministry Government of India. Thus, its continuous improvement pursuit has kept its innovative process ahead in Indian pharmaceutical circular.
Global Presence
As of 2024, March 31st, Akums Medications and Drugs Company has a market drug definition which is sold in 65 nations. Through its subsidiaries, Akumentis and Unosource, the company has established a significant international presence. Akumentis focuses on therapeutic areas such as gynaecology, cardiology, musculoskeletal and paediatric whereas Unosource specialises in anti-infectives, analgesics CNS and gynaecology.
Manufacturing Capacity
As of March 31, 2024, Akums has a complete manufacturing potential of 49.23 billion devices produced at 10 exceptional production plants. They have acquired certification from numerous worldwide regulatory bodies which includes the European Union’s Good Manufacturing Practices (EU-GMP), the World Health Organization’s Good Manufacturing Practices (WHO-GMP) amongst others and US National Sanitation Foundation (US-NSF).
Risks
Geographic Concentration
Akums Drugs and Pharmaceuticals’ operations and research facilities are primarily located in Haridwar, Uttarakhand. In this regard, regulatory changes, natural calamities or political instability in the business environment of this state may affect the company negatively.
Client Dependence
With a significant percentage of revenue coming from a rather limited clientele, the company counts on them rather heavily.During FY22, FY23 and FY24, the main ten clients contributed 41.27% (₹1,098.27 crores), 38.92% (₹1,059.75 crores), and 39.31% (₹1,284.11 crores) of its activities’ pay. If Akums were to lose any one of these major clients, it would have a serious effect on its commercial and financial success.
Legal Proceedings
The Akums Drugs itself involves others, including its promoters, subsidiary firms, and directors in different kinds of legal matters. Any negative decision from the courts may cause a negative effect on the aspect of business dealings, financial standing and image of the concerned firm.
Financial Health
The company declared an account deficit for ₹250.87 crore in FY22. The overall debt of the Group valued ₹493.89 crore as on March 31st, 2024. The failure to pay these debts promptly may endanger its business operations and financial health.
Akums Drugs and Pharmaceuticals Ltd IPO Conclusion
Akums Drugs and Pharmaceuticals Ltd. is a leading player in the CDMO space having good market share and clientele diversity. Although there have been considerable price cuts during the IPO stage and previous financial problems, ADPL has been growing strategically, boasts more than enough products as well as strong research and development abilities making it a potential candidate for investment. Those interested in investing should focus on the medium to long term as ADPL’s growth path may be really beneficial provided it gets off the ground safely.
Investment Strategy
Investors looking for medium to long-term gains may find it worthwhile to invest in Akums Drugs and Pharmaceuticals Ltd. IPO, considering the company’s market position and growth potential. The company’s expansion, technological innovation, and competitive positioning in the global CDMO market are key factors that make it a good investment option. Nevertheless, it is important for investors to keep in mind risks that may come with such investments such as geographic concentration, client dependence, lawsuits and financial status.
FAQs
Why Akums Drugs and Pharmaceuticals ltd IPO?
Akums Drugs and Pharmaceuticals Limited IPO provides a potential early funding possibility withinside the company. A fascinated stockmarket investor can practise for IPOs of Akums Drugs and Pharmaceuticals to buy IPO stocks earlier than Akums stocks are indexed at the inventory change. Some could opt for a quick time period list benefit from Akums Drugs and Pharmaceuticals IPO even as others can also additionally need long term funding benefit.
What is the difficulty length of Akums Drugs & Pharmaceuticals Ltd IPO?
The troubled length of the Akums Drugs & Pharmaceuticals Ltd IPO is ₹1,856.seventy four crores.
What is ‘pre-practice’ for Akums Drugs & Pharmaceuticals Ltd IPO?
Pre-practice will permit you to practise for the Akums Drugs & Pharmaceuticals Ltd IPO days earlier than the subscription duration starts.
If I pre-practice for Akums Drugs & Pharmaceuticals Ltd IPO, whilst will my order get positioned?
Your order can be positioned at the change as quickly because the Akums Drugs & Pharmaceuticals Ltd IPO bidding starts. You will acquire a UPI request inside 24 hours after the bidding duration opens.
What are the open and near dates of the Akums Drugs & Pharmaceuticals Ltd IPO?
Akums Drugs & Pharmaceuticals Ltd IPO can be open between July 30, 2024, and August 1, 2024.
What is the lot length and minimal order amount of the Akums Drugs & Pharmaceuticals Ltd IPO?
The lot length and minimal order amount for Akums Drugs & Pharmaceuticals Ltd IPO is 22 stocks.
What is the allotment date for the Akums Drugs & Pharmaceuticals Ltd IPO?
The allotment date for Akums Drugs & Pharmaceuticals Ltd IPO is August 2, 2024. For allotment repute, you may go to the internet site of the registrar of the IPO.
Who is the registrar of Akums Drugs & Pharmaceuticals Ltd IPO?
The registrar for the Akums Drugs & Pharmaceuticals Ltd IPO is Link Intime India Pvt Ltd. You can test the allotment repute at the registrar’s internet site.
Where is the Akums Drugs & Pharmaceuticals Ltd IPO getting indexed?
The stocks are proposed to be indexed at the BSE and NSE. By knowing those key details, capability traders could make knowledgeable selections approximately taking part in Akums Drugs & Pharmaceuticals Ltd IPO.
Disclaimer: The information in this “Stock Profile” blog post is for informational purposes only. It is not financial advice. Always consult a qualified expert before making investment decisions.
