Akums Drugs & Pharmaceuticals Ltd

Akums Drugs & Pharmaceuticals Ltd

Price Range

₹646 - ₹679

Bidding Dates

30 Jul - 1 Aug

Allotment Date

2 Aug 2024

IPO subscribed over

🚀 63.56x

This IPO has been subscribed by 21.3x in retail and 90.09x in QIB.

Key Statistics

Bid Opening DateBid Opening Date30 Jul 2024
Bid Closing DateBid Closing Date1 Aug 2024
Allotment DateAllotment Date2 Aug 2024
Issue SizeIssue Size₹1,856.74Cr
Quantity in 1 lotQuantity in 1 lot22

Strength and risks

Strength

Strength

  • Largest India-focused CDMO serving the Indian domestic pharmaceutical industry.

  • Diverse client base with longstanding CDMO relationships.

  • Large and rapidly growing R&D capabilities across its product portfolio.

  • Strategic presence across the pharmaceutical value chain.

  • Experienced and entrepreneurial management team with a proven track record and marquee healthcare focused PE investor.


Risk

Risk

  • Its manufacturing units and research and development centres are concentrated in Haridwar, Uttarakhand and the company is exposed to risks originating from economic, regulatory, political and other changes in this region, including natural disasters, which could adversely affect its business, results of operations and financial condition.

  • Any slowdown or shutdown in its manufacturing and research and development operations could have an adverse effect on its business, results of operations, financial condition and cash flows.

  • Any manufacturing or quality control concerns or its inability to deliver products on a timely basis, or at all, could result in the cancellation of purchase orders, breaches of relevant agreements, and termination of agreements by its clients and distributors, which could have an adverse effect on its business, results of operations, financial condition and cash flows.

  • Its manufacturing units are subject to periodic inspections and audits by regulatory authorities and clients. The company may be subject to regulatory action which may damage its reputation leading to an adverse effect on the companys business, results of operations, financial condition and cash flows.

  • The company relies on domestic and international third-party suppliers for the supply of raw materials and any delay, interruption or reduction in such supply could adversely affect its business, results of operations, financial condition and cash flows.

  • The Company had issued Equity Shares to more than 49 investors in the past, which may have been in non-compliance with the Companies Act, 1956.

  • The company import some of its raw materials from China and other countries and source its remaining raw materials domestically. Any delay, interruption or reduction in the supply of such raw materials could adversely affect its business, financial condition and results of operations.

  • Its success depends on the companys ability to successfully develop and commercialize new products in a timely manner. Any failures to do so could adversely affect its business, results of operations and financial condition.

  • Certain of its corporate records, filings and instruments of transfer are not traceable. Its cannot assure you that no legal proceedings or regulatory actions will be initiated against the company in the future in relation to any such discrepancies.

  • The company has incurred losses in the past and may incur losses in the future.

Promoters Holding

Investors Holdings %
Sanjeev Jain19.43%
Sandeep Jain19.44%
Akums Master Trust43.57%

About Akums Drugs & Pharmaceuticals Ltd

Bulkcorp International Limited is a pharmaceutical contract development and manufacturing organization offering a comprehensive range of pharmaceutical products and services in India and overseas. The Company is also engaged in the sale of branded pharmaceutical formulations and manufacturing of active pharmaceutical ingredients. Some of its other services include formulation research and development, preparation and filing of regulatory dossiers in the Indian and global markets, and other testing services. Some of its manufacturing units have been accredited by various global regulatory agencies such as the European Good Manufacturing Practice, the World Health Organization Good Manufacturing Practice and the United States National Sanitation Foundation.
OrganisationAkums Drugs & Pharmaceuticals Ltd
HeadquartersDelhi
IndustryPharmaceuticals

Frequently Asked Questions

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IPO Objectives

  • Repayment or prepayment of indebtedness for Akums and its subsidiaries (Maxcure Nutravedics Ltd. and Pure and Cure Healthcare Pvt.)
  • Funding incremental working capital requirements
  • Pursuing inorganic growth initiatives through acquisitions
  • General corporate purposes
  • 86% of the IPO proceeds are allocated towards debt repayment (₹1599.1 Cr)


Services Offered:

  • Formulation research and development
  • Preparation and filing of regulatory dossiers in Indian and global markets
  • Other testing services


Production Capabilities:

  • Extensive range of dosage forms: tablets, capsules, liquid orals, vials, ampoules, blow-filled seals, topical preparations, eye drops, dry powder injections, and gummies
  • Largest CDMO by production capacity in India for FY24, with 49.23 billion units annually, 4.5 times its second-largest peer


Expansion Plans:

  • Adding two new manufacturing units by FY 2025


Clientele:

  • Serves 26 of the top 30 pharmaceutical companies in India


Key Financial Highlights

BusinessFY 2024 (₹ in Crore)% of revenue from operations
CDMO3,266.3578.18%
Branded and generic formulations699.3216.74%
API212.525.09%
Total Revenue from Operations4,178.20100.00%
  • 78% of revenue from CDMO
  • Revenue grew nearly 14% to ₹4,212.21 crore in FY24 (from ₹3,700.93 crore in FY23)
  • Profit-after-tax declined 99.1% to ₹79 lakh in FY24 (from ₹97.82 crore in FY23)
  • Net worth fell 1% to ₹709.5 crore (from ₹717.19 crore in FY23)


Market Position

  • Largest domestic market-focused Indian CDMO on a revenue basis
  • 9.3% market share by value in the Indian domestic CDMO market (FY23)
  • 8.8% market share by volume in the total Indian Pharmaceutical Market (FY23)
  • 29.4% market share by value in the Indian domestic CDMO market (FY23)


Competitors

  • Tirupati Medicare
  • Innova Captab Ltd


Financial Results

YearRevenue (₹ in Crores)Revenue Change (%)PAT (₹ in Crores)PAT Change (%)
2022₹3694.52NA-₹250.87NA
2023₹3700.930.17%₹97.82138.99%
2024₹4212.2113.81%₹0.79-99.19%

Akums Drugs & Pharmaceutical IPO Review

From massive production capacity to financial performance and risks involved, here are 7 key facts you need to know before investing in Akums Drugs & Pharmaceutical IPO.