10 things to know about the upcoming IPO Akums Drugs and Pharmaceuticals

The Akums Drugs and Pharmaceuticals Limited IPO is creating a buzz in the market, and for good reason. Investors are looking forward to this opportunity to invest in a leading pharmaceutical company with a strong track record.

With the HDFC SKY app's One-Click IPO feature, investing in this promising IPO has never been easier. This feature uses your existing UPI account, making the process seamless and efficient. Here’s why you should consider adding Akums Pharmaceuticals to your investment portfolio.

1. Strong Industry Presence: Established in 2004, Akums Drugs and Pharmaceuticals Limited has built a robust reputation in the pharmaceutical sector.

2. Comprehensive Service Offering: As a leading contract development and manufacturing organization (CDMO), Akums offers a wide range of pharmaceutical products and services.

3. Impressive Financial Performance: Akums' revenue increased by 13.81% in the financial year ending March 31, 2024, indicating strong financial growth.

4. Significant Market Share: Akums commands a notable share in the pharmaceutical manufacturing market in India and abroad.

5. Innovative Solutions: The company focuses on end-to-end solutions for product development, manufacturing, research, and development, ensuring high-quality output.

6. Expansion Potential: Proceeds from the IPO will support further expansion and capacity building, driving future growth.

7. Strong Promoter Holding: With 84.94% pre-issue promoter holding, there's significant skin in the game, aligning management's interests with those of investors.

8. Strategic Alliances: Akums has strong relationships with key players in the pharmaceutical industry, enhancing its market position.

9. Growing Demand: The increasing demand for pharmaceutical products globally provides a conducive environment for Akums to thrive.

10. Attractive Valuation: The IPO price band of ?646 to ?679 per share is deemed attractive given the company’s growth prospects and market position.

About Akums Pharmaceutical

Akums Drugs and Pharmaceuticals Limited is a premier CDMO that has been providing a comprehensive range of pharmaceutical products and services since its inception in 2004. The company excels in offering end-to-end solutions encompassing product development, manufacturing, research, and development. With a strong foothold in both Indian and international markets, Akums is known for its commitment to quality and innovation.

Key Details of the IPO

- IPO Date: July 30, 2024, to August 1, 2024

- Face Value: ?2 per share

- Price Band: ?646 to ?679 per share

- Lot Size: 22 shares

- Total Issue Size: 27,345,162 shares (aggregating up to ?1,856.74 crores)

- Fresh Issue: 10,014,727 shares (aggregating up to ?680.00 crores)

- Offer for Sale: 17,330,435 shares (aggregating up to ?1,176.74 crores)

Financials of Akums Drugs and Pharmaceuticals

- Assets: ?3,516.37 crores

- Revenue: ?4,212.21 crores (increased by 13.81% from the previous year)

- Net Worth: ?709.50 crores

- Reserves and Surplus: ?861.01 crores

- Total Borrowing: ?491.56 crores

Key Performance Indicators

- ROE: 0.11%

- ROCE: 3.37%

- Debt/Equity: 0.69

- P/BV: 13.69

- PAT Margin: 0.02%

Objectives of the IPO

The primary objectives of the Akums Drugs and Pharmaceuticals IPO are to raise capital for:

- Repayment of Indebtedness: To repay existing debts of the company and its subsidiaries.

- Incremental Working Capital: To fund the company's incremental working capital requirements.

- Inorganic Growth: To pursue acquisitions and other strategic growth initiatives.

- General Corporate Purposes: To support various operational and strategic initiatives.

Conclusion

The Akums Drugs and Pharmaceuticals IPO presents a promising investment opportunity given the company's strong market position, comprehensive service offerings, and robust growth potential. With a strategic use of the IPO proceeds aimed at expansion and innovation, Akums is well-positioned to capitalize on the growing demand in the pharmaceutical industry. Moreover, with the HDFC SKY app's One-Click IPO feature, which uses your existing UPI account, investing in this IPO is made simple and convenient. Investors looking for exposure to a reputable and expanding pharmaceutical company should consider this IPO.