The proposed IPO includes a fresh issue of equity shares amounting to Rs 680 crore and an offer-for-sale (OFS) of 1.86 crore shares by promoters and an existing investor, as outlined in the draft red herring prospectus (DRHP) submitted on Saturday.
The company, in its 2024 listing plans, is set to leverage the IPO for further expansion and development. The OFS involves shares from Sanjeev Jain, Sandeep Jain, and Ruby QC Investment Holdings Pte Ltd. Additionally, Akums is exploring the possibility of a pre-IPO placement to raise Rs 136 crore, which could impact the size of the fresh issue.
The funds raised from the fresh issue are earmarked for key purposes, including debt repayment, addressing working capital requirements, pursuing inorganic growth through acquisitions, and covering general corporate needs.
Established in 2004, Akums is a pharmaceutical Contract Development and Manufacturing Organization (CDMO) that offers a comprehensive range of pharmaceutical products and services both in India and overseas. Notable clients as of September 30, 2023, include Alembic Pharmaceuticals, Alkem Laboratories, Cipla, Dabur India, Dr. Reddy’s Laboratories, Sun Pharmaceutical Industries, among others.
The IPO is being managed by renowned institutions, with ICICI Securities, Axis Capital, Citigroup Global Markets India, and Ambit Pvt Ltd serving as the running lead managers for the issue. Akums’ move towards an IPO reflects its strategic vision for growth and market expansion in the pharmaceutical sector.