Akums Drugs & Pharma IPO: Public Issue Subscribed 22x On Day 3, GMP Soars; Don't Miss Out On Dates

The initial public offering (IPO) of Akums Drugs and Pharmaceuticals Ltd has continued to attract strong interest on the last day of bidding. As of 2:09 pm today (day 3), the IPO subscription status stood at an impressive 22.56 times, according to data from the Bombay Stock Exchange (BSE).

The IPO received bids for a total of 34,21,33,264 shares, significantly exceeding the 1,51,62,239 shares available for sale.

The non-institutional investors' (NII) quota was the most oversubscribed, receiving 31.66 times the shares on offer. Retail investors also showed interest, with their portion being subscribed 16.20 times. The segment for Qualified Institutional Buyers (QIBs) was subscribed 20.72 times, and the employee portion saw a subscription of 3.31 times.

The IPO has witnessed an overwhelming response on its second bid day. This surge of interest comes as the Nifty 50 approaches the significant 25,000 mark in a bullish market environment. According to data from the Bombay Stock Exchange (BSE), the Akums Drugs IPO has been subscribed 4.43 times, highlighting the robust demand for the company's shares.

On day 2, retail investors' quota was subscribed 8.98 times, while non-institutional investors (NIIs) subscribed to 8.48 times their allotted portion. Meanwhile, the qualified institutional buyers (QIBs) section saw a 96% subscription rate, and the employee portion was subscribed 2.23 times. These figures underscore the broad-based appeal of the IPO among different classes of investors.

The IPO's success was evident from the first day of the subscription period, which began on July 30 and is set to conclude today, August 1. On the first day itself, the IPO was fully subscribed within an hour of its launch, with retail investors quickly filling up their quota. This rapid subscription indicates a high level of confidence and interest in Akums Drugs and Pharmaceuticals among retail investors.

The company set the issue price band in the range of Rs 646 to Rs 679 per share. Prior to the public subscription period, Akums Drugs secured Rs 829 crore from anchor investors, providing a strong foundation for the IPO. This initial investment from anchor investors often acts as a positive signal to other investors, contributing to the overall demand.

By the end of the first day, the overall subscription status stood at 1.37 times. The retail investor portion saw a 3.35 times subscription rate, significantly higher than the non-institutional investor portion, which was subscribed 1.96 times. QIBs accounted for 43% of the total subscriptions, while the employee component received 1.07 times the number of shares on offer.

Akums Drugs has allocated 75% of the issue size for QIBs, 15% for NIIs, and 10% for retail investors. Investors could bid for a minimum of 22 equity shares and in multiples thereof, making the IPO accessible to a wide range of investors.

Founded in 2004, Akums Drugs and Pharmaceuticals is a contract development and manufacturing organization (CDMO) that offers an array of pharmaceutical products and services both domestically and internationally. The company's extensive client list includes prominent names such as 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).

The Rs 1,857 crore IPO includes a fresh issue of Rs 680 crore and an offer-for-sale (OFS) of 17,330,435 equity shares by the promoters and other investors. In the OFS, Ruby QC Investment Holdings Pte Ltd is offloading 1.43 crore shares, while promoters Sanjeev and Sandeep Jain are selling 15.12 lakh equity shares each. The net proceeds from the fresh issue will be used to repay the company and its subsidiaries' debts, support inorganic growth projects, and meet increased working capital requirements.

The book-running lead managers for the IPO are ICICI Securities Ltd, Axis Bank Ltd, Citigroup Global Markets India Private Ltd, and Ambit Private Ltd, with Link Intime India Private Ltd serving as the registrar for the offering.

The grey market premium (GMP) for Akums Drugs and Pharmaceuticals IPO stands at +170, indicating that shares are trading at a premium of Rs 170 in the grey market. This suggests an estimated listing price of Rs 849 per share, which is 25.04% higher than the upper end of the IPO price band of Rs 679. The grey market premium reflects investors' willingness to pay a premium over the issue price, signalling strong demand and positive sentiment towards the IPO.