Akums Drugs Sets IPO Price Band At Rs 646–679 Apiece

Akums Drugs and Pharmaceuticals Ltd. has set a price band of Rs 646–679 per share for its upcoming initial public offering that is set to open next week for investors.

The public offering is a combination of a fresh issue of equity shares worth Rs 680 crore and an offer for sale of 1.73 crore shares by promoters and an existing investor. Sanjeev Jain and Sandeep Jain are the promoters selling 15.1 lakh shares each, while Ruby QC Investment Holdings Pte will offload 1.43 crore shares under the OFS component.

The issue will open for subscription on July 30 and close on Aug. 1. The bidding for the anchor portion will open for a day on July 29. The minimum lot size for bidding will be 22 shares, with further bids to be made in multiples, according to the price band advertisement released by the company on Thursday.

Proceeds from the fresh issue will be used to repay debt, fund the working-capital requirements of the company, and pursue inorganic growth initiatives through acquisition and for general corporate purposes.

Akums is a pharmaceutical contract development and manufacturing organisation offering a comprehensive range of pharmaceutical products and services in India and overseas. In June, the pharmaceuticals company launched a combination drug for gastrointestinal tract disorders.

ICICI Securities Ltd, Axis Capital Ltd., Citigroup Global Markets India Pvt. and Ambit Pvt. are the book-running lead managers for the issue. The shares will be listed on the National Stock Exchange and on the BSE.