Akums Drugs and Pharmaceuticals Ltd., which is into contract development and manufacturing of drugs, has announced to enter the capital market with an Initial Public Offering (IPO) to raise up to ₹1,857 crore through a fresh issue and offer for sale. 

The price band has been fixed at ₹646 to ₹679 per equity share of face value of ₹ 2 each. Bids can be made for a minimum of 22 equity shares and in multiples of 22 shares thereafter.

The IPO will open on July 30, 2024 and will close August 1, 2024.

The offer comprises a fresh issue of shares aggregating up to  ₹680 crore and offer for sale of up to 1,73,30,435 shares by certain existing shareholders of the company.

The company proposes to utilise the net proceeds from the fresh Issue towards repayment/ prepayment of indebtedness, repayment/ prepayment of indebtedness of its subsidiaries, funding incremental working capital requirements and pursuing inorganic growth initiatives through acquisitions and general corporate purposes.

The company is the largest India-focused contract development and manufacturing organisation (CDMO) in terms of revenue, production capacity and clients served during FY23. During FY24, it had manufactured formulations for 26 of the leading 30 pharmaceutical companies in terms of sales in India

Promoted by Sanjeev Jain and Sandeep Jain, the company operates 10 manufacturing units, with a cumulative formulations manufacturing capacity of 49.23 billion units annually, and caters to almost all top pharma companies in India.