Akums Drugs and Pharmaceuticals IPO Subscription on Day 3 :Investors have given a strong response to the IPO of Akums Drugs and Pharmaceuticals, a company that manufactures medicines through contract manufacturing. By 4 pm on the third and last day of the IPO, it has been subscribed more than 63 times. At the same time, the premium of the IPO in the gray market is also looking decent. Seeing the high subscription and gray market premium, it is expected to have a better listing in the stock market. 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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Akms Drugs Latest Subscription Status
Akums Drug’s IPO has been subscribed 63.16 times overall till 4 pm on its third and last day (Akums Drugs Subscription status). In this IPO, 75 percent of the share is reserved for qualified institutional buyers (QIBs) and it has been subscribed about 90.09 times so far. At the same time, 15 percent of the issue is reserved for non-institutional investors (NII) and it has been subscribed 41.89 times so far. While 10 percent is reserved for retail investors and it has been subscribed 19.59 times so far. In this, shares worth Rs 15 crore have been reserved for employees and so far 3.93 times applications have been received for it. Employees will also get a discount of Rs 64 on each share.
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Acms Drug GMP Deficiency
The premium of Akms Drugs and Pharmaceuticals Limited IPO in the grey market has reduced slightly. The unlisted stock of the company is at a premium of Rs 170 in the grey market. This is a 25 per cent premium in terms of the upper price band of Rs 679. On Wednesday, this premium was Rs 205 i.e. 30 per cent.
Positive factor regarding 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
(Source for views on IPO: Swastika Investmart, Smifs and IDBI Capital reports)
(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.)
