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Akums Drugs & Pharmaceuticals Ltd IPO
Status: Closed
Overview
IPO date
30 Jul 2024 to 01 Aug 2024
Face value
₹ 2 per share
Price
₹ 646 to ₹679 per share
Issue Size
27,345,163 shares
(aggregating up to ₹ 1856.74 Cr)
(aggregating up to ₹ 1856.74 Cr)
Allotment Date
02 Aug 2024
Listing at
NSE
Issue type
Book Building
Sector
Pharmaceuticals
Objectives of Akums Drugs & Pharmaceuticals Ltd IPO
Initial public offer of 27,368,151* equity shares of face value of Rs. 2 each ("Equity Shares") of Akums Drugs and Pharmaceuticals Limited ("Company" or "Issuer") for cash at a price of Rs. 679^ per equity share (including a share premium of Rs. 677 per equity share) ("Offer Price") aggregating to
Rs. 1856.74 crores*^ comprising a fresh issue of 10,037,716* equity shares aggregating to Rs. 680.00*^ crores by the company ("Fresh Issue") and an offer for sale of 17,330,435 equity shares aggregating to Rs. 1176.74 crores* ("Offered Shares") by the selling shareholders, comprising of 1,512,000 equity shares aggregating to Rs. 102.67 crores* by Sanjeev Jain, 1,512,000 equity shares aggregating to Rs. 102.67 crores* by Sandeep Jain (together the "Promoter Selling Shareholders") and 14,306,435 equity shares aggregating to Rs. 971.41 crores* by Ruby QC Investment Holdings Pte. Ltd. (The "Investor Selling Shareholder") (the promoter selling shareholders and the investor selling shareholder, collectively referred to as the "Selling Shareholders") ("Offer for Sale", together with the fresh issue, the "Offer").
This offer includes a reservation of 243,902* equity shares aggregating to
Rs. 15.00 crores*^ for subscription by eligible employees (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constituted 17.39% and 17.23% of its post-offer paid-up equity share capital, respectively.
The face value of equity shares is Rs. 2 each. The offer price is 339.50 times the face value of the equity shares.
*Subject to finalization of basis of allotment
^After employee discount.
Akums Drugs & Pharmaceuticals Ltd IPO Strategy
- Leverage its leadership position to continue to increase its market share and consolidate its position in the CDMO market.
- Sustaining R&D for product development across therapies and dosage forms.
- Grow its domestic formulations business.
- Expanding its global presence through strategic initiatives.
- Scale its API business.
About Akums Drugs & Pharmaceuticals Ltd
Akums Drugs and Pharmaceuticals Limited was incorporated vide Certificate of Incorporation dated April 19, 2004 and received a Certificate for Commencement of Business dated May 13, 2004 issued by the RoC.
Alkums Drugs & Pharmas are a pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services in India and overseas. They are into sale of branded pharmaceutical formulations and manufacturing of Active Pharmaceutical Ingredients. Some of the other services include formulation research and development, preparation and filing of regulatory dossiers into the Indian and global markets, and other testing services. Some of manufacturing units have been accredited by various global regulatory agencies such as the European Good Manufacturing Practice, the World Health Organization Good Manufacturing Practice and the United States National Sanitation Foundation. Their specialization extends to development and sale of APIs across diverse chemical processes and therapeutic areas such as anti-infective, respiratory and diabetes.
In 2004, the Company established first plant for oral dosage commissioned at 19, 20, 21, Sector 6A, Haridwar, Uttarakhand. In 2007, it established dedicated manufacturing site for oral liquid dosage and sterile products both at Haridwar, Uttarakhand. It incorporated Maxcure Nutravedics Limited to venture into nutraceuticals in 2009. In 2010, it dedicated a facility for hormones ; dedicated a facility for cosmetics and dermatology at Haridwar, Uttarakhand. In 2010, it incorporated Akumentis Healthcare Limited to venture into branded formulations.
In 2011, it innovated bi-layered sustained release tablets for the first time. In 2012, acquired subsidiary, Pure and Cure Healthcare Private Limited to expand capacity and capabilities. In 2013, it acquired Malik Lifesciences Private Limited manufacturing sites to expand capacity and capabilities. It established R&D Laboratory in Mumbai, Maharashtra to venture into regulated market in 2015.
In 2021, the Company acquired Parabolic Drugs to form Akums Lifesciences Limited and ventured into APIs. Further, it acquired Kotdwar Plant in Uttarakhand by Akums Healthcare Limited. In 2022, it acquired facility in Haridwar, Uttarakhand through the subsidiaries, Akums Healthcare Limited and in 2023, acquired Baddi facility in, Himachal Pradesh through Pure and Cure Healthcare Private Limited
Following a Scheme of Arrangement on October 17, 2023, Akums Lifesciences Limited got merged with its subsidiary, Pure and Cure Healthcare Private Limited (PCHL) with effect from April 1, 2022. As part of this acquisition, it acquired manufacturing units in Dera Bassi and Lalru in Punjab and Barwala in Haryana, and an R&D centre in Barwala, Haryana and commenced operations in the manufacture and sale of key starting materials, intermediates and APIs.
The Company is proposing the Public Issue by raising funds aggregating Rs 680 Crores through Fresh Issue and by issuing 18,598,365 Equity Shares through Offer for Sale.
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T&C*
Strengths vs Risks of Akums Drugs & Pharmaceuticals Ltd
Know the pros & cons
Strengths
Largest India-focused CDMO serving the Indian domestic pharmaceutical industry.- Diverse client base with longstanding CDMO relationships.
- Large and rapidly growing R&D capabilities across its product portfolio.
- Strategic presence across the pharmaceutical value chain.
- Experienced and entrepreneurial management team with a proven track record and marquee healthcare focused PE investor.
Risks
- Its manufacturing units and research and development centres are concentrated in Haridwar, Uttarakhand and the company is exposed to risks originating from economic, regulatory, political and other changes in this region, including natural disasters, which could adversely affect its business, results of operations and financial condition.
- Any slowdown or shutdown in its manufacturing and research and development operations could have an adverse effect on its business, results of operations, financial condition and cash flows.
- Any manufacturing or quality control concerns or its inability to deliver products on a timely basis, or at all, could result in the cancellation of purchase orders, breaches of relevant agreements, and termination of agreements by its clients and distributors, which could have an adverse effect on its business, results of operations, financial condition and cash flows.
- Its manufacturing units are subject to periodic inspections and audits by regulatory authorities and clients. The company may be subject to regulatory action which may damage its reputation leading to an adverse effect on the company's business, results of operations, financial condition and cash flows.
- The company relies on domestic and international third-party suppliers for the supply of raw materials and any delay, interruption or reduction in such supply could adversely affect its business, results of operations, financial condition and cash flows.
- The Company had issued Equity Shares to more than 49 investors in the past, which may have been in non-compliance with the Companies Act, 1956.
- The company import some of its raw materials from China and other countries and source its remaining raw materials domestically. Any delay, interruption or reduction in the supply of such raw materials could adversely affect its business, financial condition and results of operations.
- Its success depends on the company's ability to successfully develop and commercialize new products in a timely manner. Any failures to do so could adversely affect its business, results of operations and financial condition.
- Certain of its corporate records, filings and instruments of transfer are not traceable. Its cannot assure you that no legal proceedings or regulatory actions will be initiated against the company in the future in relation to any such discrepancies.
- The company has incurred losses in the past and may incur losses in the future.
- The company has had negative cash flows from investing activities during the Financial Year 2024. Negative cash flows over extended periods, or significant negative cash flows in the short term, could affect its ability to operate the company's business and implement its growth plans.
- A portion of the Net Proceeds may be utilized for repayment or pre-payment of a loan availed by its Subsidiary from Citibank N.A., which is an affiliate of Citigroup Global Markets India Private Limited, one of the BRLMs.
- The active pharmaceutical ingredient ("API") manufacturing unit of its Subsidiary, Pure and Cure Healthcare Private Limited, has been subject to regulatory actions by the Punjab Pollution Control Board in relation to non-compliance with conditions stipulated in the environmental approvals granted.
- Its business requires significant capital expenditure. If the company is unable to have access to capital, it may adversely affect its business, results of operations, cash flows and financial condition.
- Its inability to collect receivables and instances of payment default by its clients could result in the reduction of the company's profits and affect its cash flows, adversely affecting business, results of operations, financial condition and cash flows.
- Its business is dependent on the sale of products to a limited number of clients for a significant portion of its revenues. The loss of one or more such clients or the deterioration of their financial condition or prospects could adversely affect its business, results of operations and financial condition.
- Its insurance coverage may not be sufficient or adequate to cover its losses and liabilities. If the company suffer a large uninsured loss or an insured loss that significantly exceeds its insurance coverage, its business, results of operations, financial condition and cash flows may be adversely affected.
- Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company's business, financial condition, cash flows and results of operations.
- The Indian pharmaceutical market is subject to extensive regulation and its failures to comply with the existing and future regulatory requirements in the pharmaceutical market could adversely affect its business, results of operations and financial condition.
- Its inability to successfully implement the company's business plan and growth strategy could have an adverse effect on its business, results of operations, financial condition and cash flows.
- The company has received various notices from regulatory authorities in India alleging instances of non-compliances, including with respect to certain violations of Companies Act, Employees' Provident Fund and Miscellaneous Provisions Act, 1952, Drugs and Cosmetics Act, 1940 and other applicable law by the Company and Subsidiaries in the past. Failures to defend these proceedings successfully may have an adverse effect on its business operations, financial condition, and reputation.
- The degree certificates of the educational qualifications of one of its Directors and certain Senior Management Personnel are not traceable.
- There have been certain instances of delays in payment of statutory dues by the Company and its Subsidiary in the past. Any failures or delay in payment of such statutory dues may expose it to statutory and regulatory action, as well as significant penalties, and may adversely impact its business, results of operations, cash flows and financial condition.
- Its EBITDA margin, profit after tax margin, return on equity and return on capital employed have fluctuated significantly during the Financial Years 2024, 2023 and 2022.
- Its operations are labour intensive, and its may be subject to strikes, work stoppages or increased wage demands by the company employees, which could adversely affect its business, results of operations and financial condition.
- The company relies on third party providers to carry out clinical trials on products introduced by it. While the company does not have direct control over such trials, any occurrence of non-compliance with applicable regulations, or any errors or omissions during the trial process could adversely affect its business, results of operations and financial condition.
- Its inability to accurately forecast demand for the company products and manage its inventory may have an adverse effect on its business, results of operations, financial condition and cash flows.
- Its inability to adopt new technologies could adversely affect the company's business, results of operations, cash flows and financial condition.
- Its business, results of operations and financial condition may be adversely affected if the company is unable to enhance or maintain its brand image.
- The company export its products to regulated and semi-regulated markets and a failures to comply with the regulatory and other requirements of such markets could have an adverse effect on its business, financial condition, results of operations and cash flows.
- The company is subject to the risk of loss due to fire, accidents and other hazards as its manufacturing, and research and development processes utilize materials that are highly flammable and hazardous. Any failures to comply with existing and future regulatory requirements or non-compliance with and changes in, safety, health, environmental and labour laws and other applicable regulations, could adversely affect its business, results of operations, financial condition and cash flows.
- Any failures to comply with existing and future regulatory requirements or non-compliance with and changes in, environmental compliance laws, regulations and other requirements, could adversely affect its business, results of operations, financial condition and cash flows.
- The company operates in a market that is highly competitive to provide outsourced pharmaceutical manufacturing services, particularly for formulations, to clients in India and other jurisdictions.
- There are certain factors particular to the industry its operates in that drive the company results of operations and business and its failures to account for these factors or implement them in its business could adversely affect its business, results of operations, financial condition and cash flows.
- Its employees and clients may engage in misconduct or other improper or illegal activities, including misrepresentation, noncompliance with regulatory requirements and breach of contractual obligations.
- Its international business exposes the company to complex management, legal, tax and economic risks, which could adversely affect its business, results of operations and financial condition.
- There are outstanding legal proceedings involving the Company and certain of its Promoters, its Subsidiaries and the company's Directors.
- The Company has received a summon from the Directorate of Enforcement, Ministry of Finance, Government of India in relation to Parabolic Drugs Limited.
- Its Managing Director has received a summon from the Directorate of Enforcement, Ministry of Finance, Government of India in relation to the financial transactions undertaken by the Company with Temova Pharma Limited.
- The Company may be subject to complaints filed in various forums including SEBI, which may incur reputational, business and operational loss to the Company.
- The Company and Subsidiaries are subject to notices from the drug inspectors, alleging sub-standard quality of its products.
- The Company and Subsidiaries are subject to notices from the National Pharmaceutical Pricing Authority, Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India, New Delhi, alleging sale of products above the ceiling price.
- The Company and Subsidiaries are subject to notices from the National Pharmaceutical Pricing Authority, Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India, New Delhi upon the non-availability of its products.
- If any of its products cause, or are perceived to cause, side effects, its business, results of operations and financial condition could be adversely affected.
- Its may pursue strategic acquisitions for inorganic growth. However, the integration of such acquisitions could result in operating difficulties, dilution and other adverse consequences.
- The failures, inadequacy or breach of its information technology systems or the company's business processes regarding confidential information and other data, unauthorized access to its confidential information or violations of data protection laws could have an adverse effect on its business, results of operations, financial condition and cash flows.
- The company is dependent on its individual Promoters, Senior Management Personnel and Key Managerial Personnel, and the loss of or its inability to attract or retain such persons could adversely affect its business, results of operations, financial condition and cash flows.
- The company is dependent upon third-party transportation providers for supply of its branded and generic formulations to distributors. Any delay, interruption or reduction in such supply could adversely affect its business, results of operations, financial condition and cash flows.
- The company is dependent upon third-party transportation providers for supply of its branded and generic formulations to distributors. Any delay, interruption or reduction in such supply could adversely affect its business, results of operations, financial condition and cash flows.
- The company has certain contingent liabilities, which, if they materialize, may affect its results of operations, financial condition and cash flows.
- Its ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
- If the company fails to establish and maintain effective internal control over its financial reporting, its may have misstatements in the company financial statements and its may not be able to report its financial results in a timely manner and as a result current and potential investors could lose confidence in its financial reporting.
- The company may be unable to obtain and maintain the intellectual property rights for its brands or protect its proprietary information.
- Reforms in the healthcare industry and the uncertainty associated with pharmaceutical pricing, reimbursement and related matters, including risks associated with periodic inspections and audits by regulatory authorities and clients, could adversely affect the marketing, pricing and demand for its products and its credit ratings.
- One of its individual Promoters does not have adequate educational qualifications.
- The company will be controlled by its Promoters and members of the Promoter Group so long as they hold a majority of the Equity Shares, which will allow them to influence the outcome of certain matters submitted for approval of its Shareholders and their interests may differ from those of the other Shareholders.
- The company has in the past entered into related party transactions and may continue to do so in the future. Its cannot assure you that the company could not have achieved more favourable terms had such transactions not been entered into with related parties.
- The interests of its Promoters and Directors may cause conflicts of interest in the ordinary course of its business.
- The company lease its Registered Office, its Corporate Office and 10 out of 15 of the company's manufacturing units. Any termination or failures by it to renew the lease arrangements for such offices or units in a timely manner and on competitive terms, or at all, could adversely affect its business, financial condition, results of operations and cash flows.
Akums Drugs & Pharmaceuticals Ltd Peer Comparison
Understand the company’s industry standing
Akums Drugs & Pharmaceuticals Ltd
Divi's Laboratories Ltd
Suven Pharmaceuticals Ltd
Face Value
2
2
1
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
4178.182
7845
1051.354
EPS-Basis
-0.28
60.27
11.8
EPS-Diluted
-0.28
60.27
11.8
NAV Per Share
49.59
511.21
80.56
P/E-Basic EPS
---
74.99
69.54
P/E-Diluted EPS
---
---
---
RONW(%)
-0.57
11.79
14.64
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 30 Jul 2024 & closes on 01 Aug 2024.
Akums Drugs and Pharmaceuticals Limited was incorporated vide Certificate of Incorporation dated April 19, 2004 and received a Certificate for Commencement of Business dated May 13, 2004 issued by the RoC.
Alkums Drugs & Pharmas are a pharmaceutical contract development and manufacturing organization (CDMO) offering a comprehensive range of pharmaceutical products and services in India and overseas. They are into sale of branded pharmaceutical formulations and manufacturing of Active Pharmaceutical Ingredients. Some of the other services include formulation research and development, preparation and filing of regulatory dossiers into the Indian and global markets, and other testing services. Some of manufacturing units have been accredited by various global regulatory agencies such as the European Good Manufacturing Practice, the World Health Organization Good Manufacturing Practice and the United States National Sanitation Foundation. Their specialization extends to development and sale of APIs across diverse chemical processes and therapeutic areas such as anti-infective, respiratory and diabetes.
In 2004, the Company established first plant for oral dosage commissioned at 19, 20, 21, Sector 6A, Haridwar, Uttarakhand. In 2007, it established dedicated manufacturing site for oral liquid dosage and sterile products both at Haridwar, Uttarakhand. It incorporated Maxcure Nutravedics Limited to venture into nutraceuticals in 2009. In 2010, it dedicated a facility for hormones ; dedicated a facility for cosmetics and dermatology at Haridwar, Uttarakhand. In 2010, it incorporated Akumentis Healthcare Limited to venture into branded formulations.
In 2011, it innovated bi-layered sustained release tablets for the first time. In 2012, acquired subsidiary, Pure and Cure Healthcare Private Limited to expand capacity and capabilities. In 2013, it acquired Malik Lifesciences Private Limited manufacturing sites to expand capacity and capabilities. It established R&D Laboratory in Mumbai, Maharashtra to venture into regulated market in 2015.
In 2021, the Company acquired Parabolic Drugs to form Akums Lifesciences Limited and ventured into APIs. Further, it acquired Kotdwar Plant in Uttarakhand by Akums Healthcare Limited. In 2022, it acquired facility in Haridwar, Uttarakhand through the subsidiaries, Akums Healthcare Limited and in 2023, acquired Baddi facility in, Himachal Pradesh through Pure and Cure Healthcare Private Limited
Following a Scheme of Arrangement on October 17, 2023, Akums Lifesciences Limited got merged with its subsidiary, Pure and Cure Healthcare Private Limited (PCHL) with effect from April 1, 2022. As part of this acquisition, it acquired manufacturing units in Dera Bassi and Lalru in Punjab and Barwala in Haryana, and an R&D centre in Barwala, Haryana and commenced operations in the manufacture and sale of key starting materials, intermediates and APIs.
The Company is proposing the Public Issue by raising funds aggregating Rs 680 Crores through Fresh Issue and by issuing 18,598,365 Equity Shares through Offer for Sale.
Akums Drugs & Pharmaceuticals Ltd IPO will close on 01 Aug 2024.
- Largest India-focused CDMO serving the Indian domestic pharmaceutical industry.
- Diverse client base with longstanding CDMO relationships.
- Large and rapidly growing R&D capabilities across its product portfolio.
- Strategic presence across the pharmaceutical value chain.
- Experienced and entrepreneurial management team with a proven track record and marquee healthcare focused PE investor.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Sanjeev Jain | 28625940 | 19.43 | 27113940 | 17.23 |
| 2 | Sandeep Jain | 28639690 | 19.44 | 27127690 | 17.24 |
| 3 | Akums Master Trust | 64200000 | 43.57 | 64200000 | 40.79 |
- Its manufacturing units and research and development centres are concentrated in Haridwar, Uttarakhand and the company is exposed to risks originating from economic, regulatory, political and other changes in this region, including natural disasters, which could adversely affect its business, results of operations and financial condition.
- Any slowdown or shutdown in its manufacturing and research and development operations could have an adverse effect on its business, results of operations, financial condition and cash flows.
- Any manufacturing or quality control concerns or its inability to deliver products on a timely basis, or at all, could result in the cancellation of purchase orders, breaches of relevant agreements, and termination of agreements by its clients and distributors, which could have an adverse effect on its business, results of operations, financial condition and cash flows.
- Its manufacturing units are subject to periodic inspections and audits by regulatory authorities and clients. The company may be subject to regulatory action which may damage its reputation leading to an adverse effect on the company's business, results of operations, financial condition and cash flows.
- The company relies on domestic and international third-party suppliers for the supply of raw materials and any delay, interruption or reduction in such supply could adversely affect its business, results of operations, financial condition and cash flows.
- The Company had issued Equity Shares to more than 49 investors in the past, which may have been in non-compliance with the Companies Act, 1956.
- The company import some of its raw materials from China and other countries and source its remaining raw materials domestically. Any delay, interruption or reduction in the supply of such raw materials could adversely affect its business, financial condition and results of operations.
- Its success depends on the company's ability to successfully develop and commercialize new products in a timely manner. Any failures to do so could adversely affect its business, results of operations and financial condition.
- Certain of its corporate records, filings and instruments of transfer are not traceable. Its cannot assure you that no legal proceedings or regulatory actions will be initiated against the company in the future in relation to any such discrepancies.
- The company has incurred losses in the past and may incur losses in the future.
- The company has had negative cash flows from investing activities during the Financial Year 2024. Negative cash flows over extended periods, or significant negative cash flows in the short term, could affect its ability to operate the company's business and implement its growth plans.
- A portion of the Net Proceeds may be utilized for repayment or pre-payment of a loan availed by its Subsidiary from Citibank N.A., which is an affiliate of Citigroup Global Markets India Private Limited, one of the BRLMs.
- The active pharmaceutical ingredient ("API") manufacturing unit of its Subsidiary, Pure and Cure Healthcare Private Limited, has been subject to regulatory actions by the Punjab Pollution Control Board in relation to non-compliance with conditions stipulated in the environmental approvals granted.
- Its business requires significant capital expenditure. If the company is unable to have access to capital, it may adversely affect its business, results of operations, cash flows and financial condition.
- Its inability to collect receivables and instances of payment default by its clients could result in the reduction of the company's profits and affect its cash flows, adversely affecting business, results of operations, financial condition and cash flows.
- Its business is dependent on the sale of products to a limited number of clients for a significant portion of its revenues. The loss of one or more such clients or the deterioration of their financial condition or prospects could adversely affect its business, results of operations and financial condition.
- Its insurance coverage may not be sufficient or adequate to cover its losses and liabilities. If the company suffer a large uninsured loss or an insured loss that significantly exceeds its insurance coverage, its business, results of operations, financial condition and cash flows may be adversely affected.
- Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company's business, financial condition, cash flows and results of operations.
- The Indian pharmaceutical market is subject to extensive regulation and its failures to comply with the existing and future regulatory requirements in the pharmaceutical market could adversely affect its business, results of operations and financial condition.
- Its inability to successfully implement the company's business plan and growth strategy could have an adverse effect on its business, results of operations, financial condition and cash flows.
- The company has received various notices from regulatory authorities in India alleging instances of non-compliances, including with respect to certain violations of Companies Act, Employees' Provident Fund and Miscellaneous Provisions Act, 1952, Drugs and Cosmetics Act, 1940 and other applicable law by the Company and Subsidiaries in the past. Failures to defend these proceedings successfully may have an adverse effect on its business operations, financial condition, and reputation.
- The degree certificates of the educational qualifications of one of its Directors and certain Senior Management Personnel are not traceable.
- There have been certain instances of delays in payment of statutory dues by the Company and its Subsidiary in the past. Any failures or delay in payment of such statutory dues may expose it to statutory and regulatory action, as well as significant penalties, and may adversely impact its business, results of operations, cash flows and financial condition.
- Its EBITDA margin, profit after tax margin, return on equity and return on capital employed have fluctuated significantly during the Financial Years 2024, 2023 and 2022.
- Its operations are labour intensive, and its may be subject to strikes, work stoppages or increased wage demands by the company employees, which could adversely affect its business, results of operations and financial condition.
- The company relies on third party providers to carry out clinical trials on products introduced by it. While the company does not have direct control over such trials, any occurrence of non-compliance with applicable regulations, or any errors or omissions during the trial process could adversely affect its business, results of operations and financial condition.
- Its inability to accurately forecast demand for the company products and manage its inventory may have an adverse effect on its business, results of operations, financial condition and cash flows.
- Its inability to adopt new technologies could adversely affect the company's business, results of operations, cash flows and financial condition.
- Its business, results of operations and financial condition may be adversely affected if the company is unable to enhance or maintain its brand image.
- The company export its products to regulated and semi-regulated markets and a failures to comply with the regulatory and other requirements of such markets could have an adverse effect on its business, financial condition, results of operations and cash flows.
- The company is subject to the risk of loss due to fire, accidents and other hazards as its manufacturing, and research and development processes utilize materials that are highly flammable and hazardous. Any failures to comply with existing and future regulatory requirements or non-compliance with and changes in, safety, health, environmental and labour laws and other applicable regulations, could adversely affect its business, results of operations, financial condition and cash flows.
- Any failures to comply with existing and future regulatory requirements or non-compliance with and changes in, environmental compliance laws, regulations and other requirements, could adversely affect its business, results of operations, financial condition and cash flows.
- The company operates in a market that is highly competitive to provide outsourced pharmaceutical manufacturing services, particularly for formulations, to clients in India and other jurisdictions.
- There are certain factors particular to the industry its operates in that drive the company results of operations and business and its failures to account for these factors or implement them in its business could adversely affect its business, results of operations, financial condition and cash flows.
- Its employees and clients may engage in misconduct or other improper or illegal activities, including misrepresentation, noncompliance with regulatory requirements and breach of contractual obligations.
- Its international business exposes the company to complex management, legal, tax and economic risks, which could adversely affect its business, results of operations and financial condition.
- There are outstanding legal proceedings involving the Company and certain of its Promoters, its Subsidiaries and the company's Directors.
- The Company has received a summon from the Directorate of Enforcement, Ministry of Finance, Government of India in relation to Parabolic Drugs Limited.
- Its Managing Director has received a summon from the Directorate of Enforcement, Ministry of Finance, Government of India in relation to the financial transactions undertaken by the Company with Temova Pharma Limited.
- The Company may be subject to complaints filed in various forums including SEBI, which may incur reputational, business and operational loss to the Company.
- The Company and Subsidiaries are subject to notices from the drug inspectors, alleging sub-standard quality of its products.
- The Company and Subsidiaries are subject to notices from the National Pharmaceutical Pricing Authority, Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India, New Delhi, alleging sale of products above the ceiling price.
- The Company and Subsidiaries are subject to notices from the National Pharmaceutical Pricing Authority, Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers, Government of India, New Delhi upon the non-availability of its products.
- If any of its products cause, or are perceived to cause, side effects, its business, results of operations and financial condition could be adversely affected.
- Its may pursue strategic acquisitions for inorganic growth. However, the integration of such acquisitions could result in operating difficulties, dilution and other adverse consequences.
- The failures, inadequacy or breach of its information technology systems or the company's business processes regarding confidential information and other data, unauthorized access to its confidential information or violations of data protection laws could have an adverse effect on its business, results of operations, financial condition and cash flows.
- The company is dependent on its individual Promoters, Senior Management Personnel and Key Managerial Personnel, and the loss of or its inability to attract or retain such persons could adversely affect its business, results of operations, financial condition and cash flows.
- The company is dependent upon third-party transportation providers for supply of its branded and generic formulations to distributors. Any delay, interruption or reduction in such supply could adversely affect its business, results of operations, financial condition and cash flows.
- The company is dependent upon third-party transportation providers for supply of its branded and generic formulations to distributors. Any delay, interruption or reduction in such supply could adversely affect its business, results of operations, financial condition and cash flows.
- The company has certain contingent liabilities, which, if they materialize, may affect its results of operations, financial condition and cash flows.
- Its ability to pay dividends in the future will depends on its earnings, financial condition, working capital requirements, capital expenditures and restrictive covenants of its financing arrangements.
- If the company fails to establish and maintain effective internal control over its financial reporting, its may have misstatements in the company financial statements and its may not be able to report its financial results in a timely manner and as a result current and potential investors could lose confidence in its financial reporting.
- The company may be unable to obtain and maintain the intellectual property rights for its brands or protect its proprietary information.
- Reforms in the healthcare industry and the uncertainty associated with pharmaceutical pricing, reimbursement and related matters, including risks associated with periodic inspections and audits by regulatory authorities and clients, could adversely affect the marketing, pricing and demand for its products and its credit ratings.
- One of its individual Promoters does not have adequate educational qualifications.
- The company will be controlled by its Promoters and members of the Promoter Group so long as they hold a majority of the Equity Shares, which will allow them to influence the outcome of certain matters submitted for approval of its Shareholders and their interests may differ from those of the other Shareholders.
- The company has in the past entered into related party transactions and may continue to do so in the future. Its cannot assure you that the company could not have achieved more favourable terms had such transactions not been entered into with related parties.
- The interests of its Promoters and Directors may cause conflicts of interest in the ordinary course of its business.
- The company lease its Registered Office, its Corporate Office and 10 out of 15 of the company's manufacturing units. Any termination or failures by it to renew the lease arrangements for such offices or units in a timely manner and on competitive terms, or at all, could adversely affect its business, financial condition, results of operations and cash flows.
The Issue type of Akums Drugs & Pharmaceuticals Ltd is Book Building.
The minimum application for shares of Akums Drugs & Pharmaceuticals Ltd is 22.
The total shares issue of Akums Drugs & Pharmaceuticals Ltd is 27345163.
Initial public offer of 27,368,151* equity shares of face value of Rs. 2 each ("Equity Shares") of Akums Drugs and Pharmaceuticals Limited ("Company" or "Issuer") for cash at a price of Rs. 679^ per equity share (including a share premium of Rs. 677 per equity share) ("Offer Price") aggregating to
Rs. 1856.74 crores*^ comprising a fresh issue of 10,037,716* equity shares aggregating to Rs. 680.00*^ crores by the company ("Fresh Issue") and an offer for sale of 17,330,435 equity shares aggregating to Rs. 1176.74 crores* ("Offered Shares") by the selling shareholders, comprising of 1,512,000 equity shares aggregating to Rs. 102.67 crores* by Sanjeev Jain, 1,512,000 equity shares aggregating to Rs. 102.67 crores* by Sandeep Jain (together the "Promoter Selling Shareholders") and 14,306,435 equity shares aggregating to Rs. 971.41 crores* by Ruby QC Investment Holdings Pte. Ltd. (The "Investor Selling Shareholder") (the promoter selling shareholders and the investor selling shareholder, collectively referred to as the "Selling Shareholders") ("Offer for Sale", together with the fresh issue, the "Offer").
This offer includes a reservation of 243,902* equity shares aggregating to
Rs. 15.00 crores*^ for subscription by eligible employees (the "Employee Reservation Portion"). The offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer constituted 17.39% and 17.23% of its post-offer paid-up equity share capital, respectively.
The face value of equity shares is Rs. 2 each. The offer price is 339.50 times the face value of the equity shares.
*Subject to finalization of basis of allotment
^After employee discount.