Despite ongoing market pressures, Akums Drugs and Pharmaceuticals is anticipated to see opening gains of 10-15% on August 6, driven by robust IPO subscription figures. The Rs 1,857-crore IPO was oversubscribed 63.56 times, with significant demand from qualified institutional buyers, who subscribed 90.09 times their allotted portion. Non-institutional investors subscribed 42.21 times their share, while retail investors subscribed 21.3 times.
The IPO includes a fresh issue of Rs 680 crore and an offer-for-sale of Rs 1,176.7 crore by promoters Sanjeev and Sandeep Jain, and Ruby QC Investment Holdings. Akums Drugs, a leading pharmaceutical contract development and manufacturing organization (CDMO), has seen its domestic market share grow to 30.2% as of March 2024.
Analysts project the shares could list at around Rs 780-800, offering a potential gain of 15-18% over the issue price of Rs 679 per share.
In the grey market, Akums Drugs shares are trading at an 8-15% premium over the issue price. The company plans to use the fresh issue funds for debt repayment, working capital, and growth initiatives.
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