Akums Drugs lists well

There has been a new listing today and what a storm of a time to get listed with so much uncertainty in the markets currently.

As against the IPO price of Rs.679, it got listed on the BSE at R.725, went up to Rs.784.65 and is now trading at Rs.762.

Akums Drugs is a 20 year old pharmaceutical contract development and manufacturing organization (CDMO) having 12 manufacturing plants in North India. With just Rs. 3,300 cr topline from CDMO business (Rs. 4,200 cr overall company revenue), it enjoys 30% market share of the Indian domestic CDMO market by value.

Its IPO had well, mainly patronised by the QIBs. The issue was overall subscribed 63.44x, with QIBs portion at 90.09x, HNIs at 42.10x and Retail was strong too at 20.8x.

In our IPO Analysis, we had concluded - Issue is primarily being undertaken to provide part exit to 5 year old PE investor. Pricing leaves nothing on the table for incoming investors and is rather on the higher side. Hence, we recommend to skip the IPO.