Akums Drugs and Pharmaceuticals Ltd, a prominent player in the pharmaceutical contract development and manufacturing sector, has filed draft papers with the Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO). The IPO comprises a combination of fresh equity shares and an offer-for-sale (OFS) by promoters and an existing investor, as outlined in the draft red herring prospectus (DRHP) submitted to Sebi.

According to the DRHP, Akums Drugs intends to raise funds amounting to Rs 680 crore through the issuance of fresh equity shares, alongside an OFS of 1.86 crore shares by promoters Sanjeev Jain, Sandeep Jain, and Ruby QC Investment Holdings Pte Ltd. Additionally, the company is exploring a pre-IPO placement to raise Rs 136 crore, which may impact the size of the fresh issue. The proceeds from the IPO will primarily be allocated towards debt repayment, working capital augmentation, pursuit of inorganic growth initiatives through acquisitions, and general corporate purposes.

Established in 2004, Akums Drugs has emerged as a leading pharmaceutical contract development and manufacturing organization (CDMO), offering a diverse portfolio of pharmaceutical products and services in India and abroad. With a strong client base including Alembic Pharmaceuticals, Alkem Laboratories, Cipla, Dabur India, Dr. Reddy’s Laboratories, and Sun Pharmaceutical Industries, among others, the company has positioned itself as a trusted partner in the pharmaceutical industry.

The decision to go public underscores Akums Drugs’ strategic vision to capitalize on growth opportunities, enhance operational efficiency, and strengthen its market presence. The IPO proceeds will enable the company to fortify its financial position, enabling it to pursue strategic initiatives and capitalize on emerging market trends.

Leading financial institutions including ICICI Securities, Axis Capital, Citigroup Global Markets India, and Ambit Pvt Ltd have been appointed as the running lead managers to the issue, underscoring investor confidence and market interest in Akums Drugs’ growth prospects.

The pharmaceutical sector in India continues to witness robust demand driven by evolving healthcare needs and increasing focus on research and development. Akums Drugs, with its proven track record and commitment to quality and innovation, is well-positioned to capitalize on these opportunities and emerge as a key player in the global pharmaceutical landscape.

As Akums Drugs embarks on its journey towards IPO, investors and industry stakeholders eagerly await the company’s public debut, which is poised to redefine the dynamics of the pharmaceutical contract manufacturing sector and unlock new avenues for growth and value creation in the years to come.

By Admin

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