Akums Drugs and Pharmaceuticals Soars 17% on Market Debut

Akums Drugs and Pharmaceuticals Ltd saw its shares surge by over 17% on its stock market debut, closing at Rs 797.45 on BSE. The company's IPO, which was heavily subscribed, raised Rs 1,875 crore. Proceeds will be used for debt repayment, working capital, acquisitions, and corporate purposes.

Shares of Akums Drugs and Pharmaceuticals Ltd on Tuesday ended with a premium of over 17 per cent against the issue price of Rs 679.

The stock made its debut at Rs 725, up 6.77 per cent from the issue price on both the BSE and NSE. It later zoomed 17.44 per cent to settle at Rs 797.45 on the BSE.

At the NSE, shares of the company ended at Rs 797.50, up 17.45 per cent.

The company's market valuation stood at Rs 12,534.07 crore.

In traded volume terms, 17.40 lakh shares of the firm were traded at the BSE and 234.71 lakh shares on the NSE during the day.

The initial public offer of Akums Drugs and Pharmaceuticals received 63.56 times subscription on the closing day of the share sale on Thursday amid massive participation from institutional buyers.

The Rs 1,875-crore initial share sale had a price range of Rs 646-679 per share.

Proceeds from the fresh issue will be used to repay debt, fund the working capital requirements of the company, pursue inorganic growth initiatives through acquisition, and for general corporate purposes.

Founded in 2004, Akums is a pharmaceutical contract development and manufacturing organization (CDMO), offering a comprehensive range of pharmaceutical products and services in India and overseas.

As of September 30, 2023, key clients for the company's CDMO business include Alembic Pharmaceuticals, Alkem Laboratories, Cipla, Dabur India, Dr Reddy's Laboratories, Hetero Healthcare, Ipca Laboratories, Mankind Pharma, MedPlus Health Services, Micro Labs, Mylan Pharmaceuticals, Natco Pharma, Sun Pharmaceutical Industries, and Amishi Consumer Technologies (The Mom's Co).

(With inputs from agencies.)