Akums Drugs & Pharmaceuticals IPO
Discover the growth potential of Akums Drugs & Pharmaceuticals as they take the exciting step of an Initial Public Offering.
Issue Details
Issue Snapshot
The IPO will raise up to ₹1,856.7 crore, including a fresh issue of ₹680 crore and an offer for sale of 17,330,435 shares.
Price Band
The price band has been set at ₹646 to ₹679 per share, with a discount of ₹64 per share for eligible employees.
Offer Portions
The issue will be allocated with a minimum of 75% for Qualified Institutional Buyers and up to 15% for Non-Institutional Investors.
Offer for Sale
1
Promoter Selling
The promoters, Sanjeev Jain and Sandeep Jain, will be offering a portion of their existing shares for sale.
2
Investor Selling
Certain existing investors will also be selling a portion of their shareholding through the IPO.
3
Employee Reservation
Up to ₹15 crore worth of shares will be reserved for eligible employees of the company.
Valuation
Akums Drugs & Pharmaceuticals is offering the IPO at a price-to-earnings (P/E) ratio of around 26x, which is lower than the industry average. This suggests an attractive valuation for investors looking to participate in the company's growth story.
Key Financials
Competitive Landscape
Manufacturing Capabilities
Akums operates a network of 12 state-of-the-art manufacturing facilities, giving it a competitive edge in production and quality control.
Diverse Product Portfolio
The company's portfolio spans a wide range of pharmaceutical formulations, including tablets, capsules, and injectable, catering to diverse market demands.
Global Presence
Akums exports its products to over 50 countries, demonstrating its ability to compete in international markets.
Risks and Concerns
1
Regulatory Compliance
Maintaining strict compliance with evolving pharmaceutical regulations is crucial for the company's continued growth and success.
2
Raw Material Availability
Ensuring a steady supply of key raw materials and active pharmaceutical ingredients is necessary to meet production demands.
3
Competitive Pressures
The pharmaceutical industry is highly competitive, with the need to continually innovate and stay ahead of rivals.
Why Invest in Akums?
Strong Market Position
Akums is a leading player in the Indian pharmaceutical market, with a diversified product portfolio and extensive manufacturing capabilities.
Robust Financials
The company has demonstrated consistent financial growth, with a track record of profitability and healthy return on equity.
Growth Potential
Akums is well-positioned to capitalize on the growing demand for pharmaceutical products, both domestically and internationally.