Akums Drugs IPO subscribed 4.43 times on the second day of bidding, retail investors steal the show; check GMP

Akums Drugs IPO subscription status: The initial public offer of Akums Drugs and Pharmaceuticals continues to see strong responses from investors on its second bid day amid the Nity 50 poised to hit 25,000 levels in a bull market. Akums Drugs and Pharmaceuticals IPO subscription status is 4.43 times, according to BSE data.

The quota for retail investors received 8.98 times subscription, while the Non Institutional Investors part got subscribed 8.48 times. The portion for qualified institutional buyers (QIBs) received 96% subscription, and the employee portion has been booked 2.23 times.

The initial share sale received bids for 6,72,02,850 shares, as against 1,51,62,239 shares on offer, as per the BSE data.

Investors showed a tremendous deal of interest in Akums Drugs and Pharmaceuticals IPO, which was fully booked on its opening day.

The retail section was fully subscribed an hour after it opened. Investors can invest in the offer during its public subscription period, which opens on July 30 and ends on August 1. The price band for each share is between ₹646 and ₹679. The business said on Monday that it has secured ₹829 crore from anchor investors ahead of the public subscription period for its share sale.

Akums Drugs and Pharmaceuticals IPO subscription status was 1.37 times. The subscription for the retail investor component was 3.35 times higher than that of the non-institutional investor portion, which came in at 1.96 times higher. QIBs, or qualified institutional buyers, make up 43% of all buyers. The employee component had received 1.07 times subscription.

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.

In 2004, Akums was established as a pharmaceutical contract development and production organisation (CDO). It provides a wide range of pharmaceutical services and goods 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 some of the company's major clients as of September 30, 2023.

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.

Akums Drugs IPO GMP today

Akums Drugs and Pharmaceuticals IPO GMP today or grey market premium is +157. This indicates Akums Drugs share price were trading at a premium of ₹157 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Akums Drugs share price was indicated at ₹836 apiece, which is 23.12% higher than the IPO price of ₹679.

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

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