A Positive Debut with Moderate Gains
Akums Drugs and Pharmaceuticals made a positive debut on the stock exchanges on Tuesday, August 6, 2024. The shares listed at a 6.77% premium on the BSE, trading at Rs 725 compared to the issue price of Rs 679. On the NSE, the company's shares also opened at Rs 725, offering investors a return of Rs 46, or nearly 7%, per share.
The grey market premium (GMP) for Akums Drugs IPO shares had risen by nearly 7% ahead of the listing, indicating moderate listing gains for investors. However, the actual listing fell short of expectations, likely due to prevailing market volatility.
Despite the moderate listing, analysts remain optimistic about the company's long-term growth potential. Akums Drugs is a leading pharmaceutical contract development and manufacturing organization with a strong market position and a comprehensive range of products and services. Investors with a long-term view may consider holding their position, setting a stop loss at the issue price.
The public issue of Akums Drugs included a fresh issue of 10,014,727 shares, amounting to Rs 680 crore, and an offer for sale of 17,330,435 shares, aggregating up to Rs 1,176.74 crore. The IPO was priced in the range of Rs 646-679 per share, with a lot size of 22 shares. The company fixed the issue price at Rs 679 apiece for the investors.
The public issue received strong demand from investors, being subscribed 63.44 times by the final day of subscription on Thursday, August 1, 2024. The allotment of Akums Drugs IPO shares was finalized on Friday, August 2, 2024.
Akums Drugs & Pharmaceuticals is a leading pharmaceutical contract development and manufacturing organization offering a comprehensive range of pharmaceutical products and services in India and overseas. Established in 2004, Akums produces an extensive range of dosage forms, including tablets, capsules, liquid orals, vials, ampoules, blow-filled seals, topical preparations, eye drops, dry powder injections, and gummies, among others.