Akums Drugs listing: Shares see subdued debut; here's what investors should do

Akum Drugs in line with the resilience showed in the Indian markets on Tuesday started trade on a positive note. On both the NSE and BSE,  the stock listed at a price of Rs 725, a premium of 6.77 per cent, against the IPO price of Rs 679.

Shivani Nyati, Head of Wealth, Swastika Investmart after the company's subdued listing said while the IPO received a strong subscription of 63.44 times and the initial market buzz was positive, the actual listing fell short of expectations, likely influenced by the prevailing market volatility. The company's strong fundamentals and market position offer potential for long-term growth, but investors should carefully assess the risks and market volatility. Investors with a long-term view may hold their position by keeping a stop loss at its issue price, she advises.

The issue comprised a fresh issue of 1 crore equity shares aggregating to Rs 680 crore and offer for sale (OFS) of 1.73 crore shares aggregating to Rs 1,176.74 crore.

Overall the issue on the last bidding day was subscribed 63.56 times, led by maximum subscription from the QIB class to the tune of over 90 times.

After the issue, the company's promoter holding in the company will be reduced to around 66 per cent.

The issue of Akums Drugs was launched with the objective of

Repayment/ prepayment of indebtedness of the company
Repayment/ prepayment of indebtedness of subsidiaries namely, Maxcure Nutravedics, Pure and Cure Healthcare
Funding incremental working capital requirements
Pursuing inorganic growth initiatives through acquisitions
General corporate purposes

Akums Drugs and Pharmaceuticals was incorporated on April 19, 2004. The company 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.

Anil Singhvi's view on Akum Drugs IPO

According to Zee Business Managing Editor Anil Singhvi, one should subscribe to Akums Drugs IPO for reasonable listing gains.