Akmu Drugs & Pharmaceuticals is set for a lackluster debut on Dalal Street on Tuesday, as prevailing market sell offs and weak global sentiments weigh heavily on its listing prospects.
The widespread carnage in stock markets has significantly dampened the outlook for the company’s shares, with the gray market premium (GMP) dropping sharply in recent days.
Shares of Akum Drugs and Pharmaceuticals were last seen commanding a premium of Rs 40-50 per share ahead of their listing. Indicating a modest listing gain of just 5-6% for investors.
This is a stark when the issue opened for bidding, and even Rs 170 at the close of the bidding period.
The IPO, which ran from July 30 to August 1, was offered in a fixed price band of Rs 646-679 per share, with a lot size of 22 shares. Akum Drugs & Pharmaceuticals successfully raised Rs 1,856.74 crore from its IPO, comprising a fresh share sale of up to Rs 680 crore and an offer-for-sale (OFS) of up to 1, 73, 30,435 equity share.
The issue was met with robust demand, overall subscribed 63.56 times. The quota for qualified institutional bidders (QIBs) was oversubscribed 90.09 times, non- institutional investors 42.21 times, retail investors 21.30 times, and employees 4.27 times.
Incorporated in 2004, Akum Drugs & Pharmaceuticals is a prominent contract development and manufacturing organization in the pharmaceuticals sector. The company offers a comprehensive range of branded drugs and active pharmaceutical ingredients both in India and internationally. Akum Drugs is recognized for its strong market presence and extensive product portfolio, which has attracted significant investor’s interest.
ICICI Securities, Citigroup, Global Markets India, Axis Ban and Ambit were the Book-running lead managers for the IPO, with Link In time India serving as the register. Shares of Akum Drugs & Pharmaceuticals are set to be listed on both the BSE and NSE.
Despite the positive sentiment from brokerage and strong subscription numbers, the listing of Akum Drugs & Pharmaceuticals is expected to be subdued, reflecting broader market conditions and investors caution. The company’s performance on its debut will be closely watched as a barometer of current market sentiment and the appetite for new listings amid turbulent times.