Akums Drugs and Pharmaceuticals Limited, a prominent pharmaceutical Contract Development and Manufacturing Organization (CDMO) based in India, is set to launch an Initial Public Offering (IPO). Here are the key details and objectives of the IPO:
IPO Details:
1. Structure: The IPO consists of a combination of a fresh issue of shares and an offer for sale by existing shareholders.
- Fresh Issue: 1 crore shares, amounting to Rs 680.00 crores.
- Offer for Sale: 1.73 crore shares, totaling Rs 1,262.83 crores.
- Total IPO Size: Rs 1,942.83 crores.
2. Price Band: The price band for the AKum Drugs IPO is set between Rs. 646 to Rs. 679 per share.
3. Minimum Lot Size: Investors need to apply for a minimum of 22 shares.
4. Lead Managers: The IPO is managed by prominent book-running lead managers:
- ICICI Securities Limited
- Axis Bank Limited
- Citigroup Global Markets India Private Limited
- Ambit Private Limited
5. Registrar: Link Intime India Private Ltd is appointed as the registrar for the IPO.
Objectives of the Issue:
The net proceeds from the IPO will be utilized for the following strategic purposes:
- Repaying/Prepaying Debts: The company intends to use a portion of the funds to repay or prepay existing debts of the company and its subsidiaries. This will help in reducing interest costs and improving financial health.
- Working Capital Requirements: Funding additional working capital requirements is another objective. This will ensure adequate liquidity to support ongoing operations and future growth initiatives.
- Expansion and Acquisitions: A significant part of the proceeds will be allocated towards pursuing growth opportunities through acquisitions. This strategic move aims to expand Akums Drugs’ market presence and capabilities.
- General Corporate Purposes: Lastly, some funds will be allocated for general corporate purposes to support overall business growth and stability.
Conclusion:
Akums Drugs and Pharmaceuticals Limited aims to leverage the IPO to strengthen its financial position, enhance operational capabilities, and capitalize on growth opportunities in the pharmaceutical sector. The IPO is structured to attract investors interested in the pharmaceutical manufacturing and CDMO sectors, offering exposure to a company with a diverse product portfolio and robust growth strategies.
