Akums Drugs IPO Subscription / GMP : The IPO of Akums Drugs and Pharmaceuticals, the country’s leading company that manufactures medicines through contract manufacturing, has received a good response from investors on the second day. This IPO was subscribed 4.43 times or 443 percent by 5 pm on the second day. The premium of the IPO has also increased in the grey market. In such a situation, those who get shares in this IPO are expected to get high listing gains. August 1, 2024 will be the last chance to invest in it.
The size of the IPO is Rs 1855 crore. While the company has fixed the price band for this from Rs 646 to Rs 679 per share. Allotment of shares will be done on August 2 and these shares will be listed on NSE and BSE on August 6.
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Akums Drugs Subscription status
Akms Drug’s IPO has been subscribed 4.43 times or 443 percent overall till 5 pm on its second day. In this IPO, 75 percent of the share is reserved for qualified institutional buyers (QIBs) and it has been almost completely (96 percent) filled so far. At the same time, 15 percent of the issue is reserved for non-institutional investors (NII) and it has been filled 8.48 times or 848 percent so far. While 10 percent is reserved for retail investors and it has been filled 8.98 times or 898 percent so far. In this, shares worth Rs 15 crore have been reserved for employees and so far 2.23 times applications have been received for it. Employees will also get a discount of Rs 64 on each share.
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Akums Drugs IPO GMP
There is a stir in the grey market regarding the IPO of Akms Drugs and Pharmaceuticals Limited. The unlisted stock of the company is at a premium of Rs 205 in the grey market. This is a 30 percent premium in terms of the upper price band of Rs 679.
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Swastika Investmart’s Head of Wealth, Shivani Nyati has advised to subscribe to the Akams Drugs IPO with caution. She says that all risks should be carefully assessed before taking an investment decision. Brokerage house Smifs has advised to subscribe to the Akams Drugs IPO with a long-term perspective. Brokerage house IDBI Capital has also advised to subscribe to this IPO.
1. Akms Drugs & Pharmaceuticals is a leading Contract Development and Manufacturing Organization (CDMO) in India with a diversified customer base, strong R&D capabilities and strategic presence across the pharmaceutical value chain.
2. The company has demonstrated top-line growth, but its profitability has been impacted by non-operational factors such as fair value adjustments.
3. The company’s long term prospects are supported by its established market position and growth potential.
4. Key risks with the company include geographical concentration, potential manufacturing or quality control issues, and regulatory scrutiny. These factors need to be carefully considered.
5. The Company has several new efficiencies in its operations and there is also the impact of some recent adjustments made by the Company.
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6. Current capacity utilisation at 40% leaves ample scope for future growth along with scale advantage.
7. Continued focus on providing cost effective products should aid topline growth along with improving margins.
8. Excluding adjusted put call liabilities, the IPO is valued at a reasonable P/E of around 28x.
9. Diverse client base with long term CDMO relationships
10. Large and rapidly growing research and development capabilities across its product portfolio
(Disclaimer: Investing or selling stocks is advised by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)
