Akums Drugs & Pharmaceuticals Ltd-IPO: Review, Date & GMP

Akums Drugs and Pharmaceuticals Limited IPO - Complete Overview

Akums Drugs and Pharmaceuticals Limited IPO a Mainboard IPO is a book-built issue of Rs.1,856.74 crore by Akums Drugs and Pharmaceuticals Limited that was founded in 2004, is a pharmaceutical contract development and manufacturing organization (CDMO) that provides a full spectrum of pharmaceutical goods and services in India and abroad.

In addition to offering complete product development and manufacturing solutions, the firm also conducts research and development (R&D) on formulations, prepares and submits regulatory dossiers for both domestic and international markets, and offers additional testing services. The business also produces and markets branded medications and active pharmaceutical ingredients (APIs).

Akums, one of the largest Indian CDMOs serving IPM in terms of revenue, held a 9.3% market share by value in the whole accessible Indian domestic CDMO market and an 8.8% market share by volume in the total IPM market as of FY23.

The business has made 4,025 business formulations in over 60 unique doses. The business created equations for 26 of the main 30 drug organizations in India, in view of incomes for the FY 2023. The organization's 10 assembling offices can produce 49.21 billion units yearly under the CDMO area by September 30, 2023. 

As a CDMO, the firm produces a wide variety of dosage forms, such as gummy bears, dry powder injections, topical treatments, eye drops, vials, ampoules, tablets, capsules, and liquid medications.

 

 

Akums Drugs and Pharmaceuticals Limited IPO Overview

Akums Drugs and Pharmaceuticals's Mainboard IPO of Rs.1,856.74 crore comprising a Fresh Issue of 1 crore Shares summing up to Rs.680.00 crores and an offer for sale of 1.73 crore Shares totaling Rs.1,176.74 crore out of which 10% is allocated to retail investors, 75% to institutional investors, 15% to non-institutional-investors.

The IPO will be available to investors on July 30, 2024, and conclude on August 1, 2024. The anticipated listing date for the IPO is Tuesday, August 6, 2024, and will be held on the BSE and NSE. The price range of each Share is Rs.646 to Rs.679.

If you want to apply for the IPO, Click Here to Open a Demat Account.

 

Company Financial

The company's revenue increased by 13.81%, while profit after tax (PAT) fell by 99.19% during the financial years ending March 31, 2024, and March 31, 2023. 

Below is the synopsis of the company's financial data for the financial year ending March 31, 2024.

• The total revenue of the company is Rs.4,212.21 Cr.

• The net worth of the company is Rs.709.50 Cr.

• The company's EBITDA is Rs.1,57.01 Cr.

• The total assets of the company are Rs.3,516.37 Cr.
  
  

(Amount in Crore)

Period	31 Mar 2024	31 Mar 2023	31 Mar 2022
Total Assets	3,516.37	3,266.53	3,069.05
Total Revenue	4,212.21	3,700.93	3,694.52
PAT	0.79	97.82	-250.87
Net worth	709.50	717.19	621.98
Reserve & Surplus	861.01	868.70	787.79
Borrowing	491.56	536.97	357.95

 

Revenue Bifurcation

Below is the revenue breakdown for various activities:

(Amount in million)

Net Cash Flow In Multiple Activities	FY 2024	FY 2023	FY 2022
Net Cash Flow Operating Activities	558.55	467.85	68.47
Net Cash Flow Financing Activities	-14.68	-21.17	-17.75
Net Cash Flow Investing Activities	-542.24	-502.48	0.50

 

Gross Revenue Breakdown From Various Segments

(Amount in million)

Segments	31 Mar 2024	31 Mar 2023	31 Mar 2022
Gross CDMO	41,571.22	36,159.27	35,166.22
Less: Intra segment revenue	5,374.90	4,953.25	5,390.68
Net CDMO	36,196.32	31,206.02	29,775.54
API	2,784.29	2,222.73	1,360.88
Gross branded & generic formulations	7,299.16	7,675.20	9,487.28
Less: Intra segment revenue	303.76	125.93	457.78
Net branded & generic formulations	6,995.40	7,549.27	9,029.50
Total	51,654.67	46,057.20	46,014.38

 

Geographical Breakdown Of Revenue

The Objective of The Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• Redemption or payback of the business's and its subsidiaries' debts.

• Funding the company's increased need for working capital.

• Pursuing acquisition-based inorganic growth strategies.

• General business objectives.

 

 

Peers of Akums Drugs and Pharmaceuticals Limited

(Figures as of March 31, 2024)

Company Name	Face Value (Rs.)	EPS (Rs.)	P/E (x)
Divi's Laboratories	2	60.27	74.99
Suven Pharmaceuticals Limited	1	11.80	69.54
Gland Pharma Limited	1	46.90	42.45
Torrent Pharmaceuticals Ltd.	5	48.94	60.20
Alkem Laboratories Ltd	2	150.19	34.18
Eris Lifesciences Ltd	1	28.82	34.95
JB Chemicals	1	35.66	51.38
Mankind Pharma Limited	1	47.75	44.65
Innova Captab Limited	10	18.66	29.91

 

Evaluation

The price of this IPO is Rs.646 to Rs.679 for each Share.

Evaluation Of P/E Ratio

Considering the Fiscal concluded on 31 March 2024, with EPS of Rs. (-0.28) from the last year, the resulting P/E ratio is -2425x.

Considering the weighted EPS of Rs. (-0.87) for the last three fiscal years, the P/E ratio is -780.45x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 49.14x.

Particulars	P/E Ratio
Highest	74.99
Lowest	29.91
Average	49.14

In simple words, the P/E ratio (-2425x and -780.45x) of Akums Drugs and Pharmaceuticals Limited-IPO is negative when compared with the industry’s average P/E of 49.14x, so we can not conclude based on the PE ratio whether it is overvaluation or undervaluation.

IPO's Strengths

• In terms of revenue, manufacturing capacity, and customers served during the Financial Year 2023, the company is the largest CDMO with a focus on India.

• Broad clientele with enduring connections to CDMOs.

• Vast and quickly expanding R&D resources for our whole product line.

• Strategic involvement throughout the value chain of pharmaceuticals.

• Broad, varied clientele with enduring connections.
  
  

IPO’s Weaknesses

• The company is exposed to risks arising from economic, regulatory, political, and various other changes in this region, including natural disasters, which could negatively affect its business, operational results, and financial conditions. Its manufacturing units and research and development centers are concentrated in Haridwar, Uttarakhand.

• The company's operations, financial situation, cash flows, and operational outcomes might all suffer from any halt or slowdown in its production and R&D departments.

• The company depends on both local and foreign third-party suppliers to supply its raw materials, so any delay, or reduction in this supply might harm its operations, financial situation, and cash flows.

• The company obtains the majority of its raw materials domestically, importing the remainder from China and other Nations. The company’s financial situation and operational outcomes might be negatively impacted by any postponement, cessation, or reduction in the availability of these raw materials.

• The company exports its goods to several different countries worldwide. Its items may be subject to import taxes or limitations in the applicable regions. Furthermore, unfavorable changes in the value of foreign currencies, the absence of any financial advantages, or failure to meet relevant regulations might all negatively impact its operations and business.

 

IPO GMP Today

Akums Drugs and Pharmaceuticals Limited IPO’s latest GMP is Rs.141.

 

 

Akums Drugs and Pharmaceuticals Limited IPO Timetable (Tentative)

The IPO is scheduled from July 30 2024 to August 1, 2024, with allotment on August 2, refund initiation on August 5, and listing on August 6, 2024.

 

Events	Date
IPO Opening Date	July 30, 2024
IPO Closing Date	August 1, 2024
IPO Allotment Date	August 2, 2024
Refund initiation	August 5, 2024
IPO Listing Date	August 6, 2024

 

Akums Drugs and Pharmaceuticals Limited IPO Details 

The IPO with a face value of Rs.2 per Share is set to start on July 30, close on August 1, and offer a total issue size of 27,345,162 Shares (aggregating up to Rs.1,856.74 Cr) comprising a fresh issue size of 10,014,727 Shares of Rs.680.00 Cr. and offer for sale of 17,330,435 Shares of Rs.1,176.74.

IPO Opening & Closing date	July 30, 2024 to August 1, 2024
Face Value	Rs.2 per Share
Issue Size	27,345,162 Shares (aggregating up to Rs.1,856.74 Cr).
Offer for Sale	17,330,435 Shares of Rs.1,176.74.
Fresh Issue	10,014,727 Shares of Rs.680.00 Cr.
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Link Intime India Private Ltd

.

Akums Drugs and Pharmaceuticals Limited IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (22 Shares) amounting to Rs.14938 and in multiples thereof and 13 Lots (286 Shares) amounting to Rs.194,194 respectively, while for HNI investors, the minimum Lot is 14 (308 Shares) amounting to Rs.209,132 and the maximum is 66 Lots (1452 Shares) of Rs.985,908 and for B-HNI investors Minimum is 67 Lots (1474 Shares) of Rs.1,000,846.

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
HNI (Min)	14 Lots
HNI (Max)	66 Lots
B-HNI (Min)	67 Lots

 

Akums Drugs and Pharmaceuticals Limited IPO Reservation

Institutional Portion	75%
Retail Share Portion	10%
Non-Institutional Portion	15%

 

Promoters And Management Of Akums Drugs and Pharmaceuticals Limited IPO

• Sanjeev Jain

• Sandeep Jain

• Akums Master Trust

Pre-Issue Promoter Shareholding	84.94%
Post-Issue Promoter Shareholding	-

 

 

Akums Drugs and Pharmaceuticals Limited IPO Lead Managers

• ICICI Securities Limited 

• Axis Bank Limited

• Citigroup Global Markets India Private Limited

• Ambit Private Limited
  
  

Dividend Policy

The company has not paid any dividends in the last three years.

 

Conclusion

The company has seen negative cash flow in financing and investing activities in the last few financial years but has a wide geographical presence in its business. To fulfill its objectives, the company is currently conducting an IPO for the general public.

We believe this blog will be very useful if you are looking for information about the approaching IPO since it will give you reliable information about the company's, insights, financials, and past performance. If this informative blog piques your interest, you may be interested in reading our other related and useful posts on our website.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

We believe this blog would be very beneficial to you if you are looking for such information related to this upcoming IPO since this blog would provide you with accurate information about the company's, insights, financials, and past performance. If this informative blog matches your interest, you might be interested in reading our other related useful blogs on our website.

Disclaimer: This IPO analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.

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