Akums Drugs and Pharmaceuticals Limited’s Initial Public Offer to open on July 30, 2024

• Price Band fixed at  ₹ 646 to  ₹ 679 per equity share of face value of  ₹ 2 each (“Equity Share”).

•  A discount of  ₹  64 per Equity Share is being offered to Eligible Employees Bidding in the Employee Reservation Portion.

• The Bid /Offer Period will open on Tuesday, July 30, 2024 and close on Thursday, August 1, 2024. The Anchor Investor Bid/Offer Period opens and closes on Monday, July 29, 2024.

• Bids can be made for a minimum of 22 Equity Shares and in multiples of 22 Equity Shares thereafter.

Bhubaneswar: Akums Drugs and Pharmaceuticals Limited (“AKUMS” or “The Company”), shall open the Bid / Offer Period in relation to its initial public offer of the Equity Shares (“Offer”) on Tuesday, July 30, 2024.

The Offer comprises a fresh issue of such number of Equity Shares (face value ₹ 2 each) by the Company aggregating up to  ₹ 6,800 million (the “Fresh Issue”) and offer for sale of up to 17,330,435 Equity Shares (“Offered Shares”) by certain existing shareholders of the Company (the “Selling Shareholders”). The Offered Shares comprises up to 1,512,000 Equity Shares by Sanjeev Jain, up to 1,512,000 Equity Shares by Sandeep Jain, (collectively, the “Promoter Selling Shareholders”) and up to 14,306,435 Equity Shares by Ruby QC Investment Holdings Pte. Ltd. (The “Ruby QC” or “Investor Selling Shareholder”) (such offer for sale of the Equity Shares by the Selling Shareholders, the “Offer for Sale”). Ruby QC is backed by Quadria Capital, a prominent healthcare focused private equity fund in Asia.

This Offer includes a reservation of up to such number of Equity Shares aggregating up to ₹ 150.00 million (₹ 15.00 crore) for subscription by eligible employees. (the “Employee Reservation Portion”)

The Anchor Investor Bid/Offer Period opens and closes on Monday, July 29, 2024. The Bid/Offer Period will open on Tuesday, July 30, 2024 for subscription and close on Thursday, August 1, 2024. (“Bid Details”)

The Price Band of the Offer has been fixed at ₹ 646 to  ₹ 679 per Equity Share (the “Price Band”). Bids can be made for a minimum of 22 Equity Shares and in multiples of 22 Equity Shares thereafter. (the “Minimum Bid Lot”).

The Company proposes to utilise the Net Proceeds from Fresh Issue of Equity Shares by the Company towards (i) Repayment/ prepayment of indebtedness of the Company; (ii) Repayment/ prepayment of indebtedness of its Subsidiaries namely, Maxcure Nutravedics Limited and Pure and Cure Healthcare Private Limited; (iii)Funding incremental working capital requirements of the Company; (iv) Pursuing inorganic growth initiatives through acquisitions; and (v) General corporate purposes. (the “Objects of the Offer”).

This Equity Shares are being offered through the Red Herring Prospectus of the Company dated July 24, 2024 filed with the Registrar of Companies, Delhi and Haryana at New Delhi.  (The “RHP”)

The Equity Shares to be offered through the Red Herring Prospectus are proposed to be listed on the stock exchanges being BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE” together with BSE, the “Stock Exchanges”). For the purposes of the Offer, NSE is the Designated Stock Exchange. (the “Listing Details”)

The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amendedread with Regulation 31 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended (“SEBI ICDR Regulations“) and in compliance with Regulation 6(2) of the SEBI ICDR Regulations, wherein not less than 75% of the Net Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”) (“QIB Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price (“Anchor Investor Portion”), in accordance with the SEBI ICDR Regulations. In the event of under-subscription or non-allocation in the Anchor Investor Portion, the balance Equity Shares shall be added to the Net QIB Portion.

Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors) including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.

Further, not more than 15% of the Net Offer shall be available for allocation to Non-Institutional Bidders out of which (a) one third of such portion shall be reserved for applicants with application size of more than ₹200,000 and up to ₹1,000,000; and (b) two third of such portion shall be reserved for applicants with application size of more than ₹1,000,000, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of Non-Institutional Bidders and not more than 10% of the Net Offer shall be available for allocation to Retail Individual Bidders, in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. Further, Equity Shares will be allocated on a proportionate basis to Eligible Employees applying under the Employee Reservation Portion, subject to valid Bids received from them at or above the Offer Price. All Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective ASBA accounts and UPI ID (in case of UPI Bidders) (as defined hereinafter), in which case the corresponding Bid Amounts will be blocked by the Self Certified Syndicate Banks (“SCSBs”) or under the UPI Mechanism, as applicable to participate in the Issue. Anchor Investors are not permitted to participate in the Anchor Investor Portion of the Offer through the ASBA process. For details, see “Offer Procedure” on page 472 of the RHP.

ICICI Securities Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited and Ambit Private Limited are the book running lead managers to the Offer (“BRLMs”).

All capitalised terms used herein but not defined shall have the same meaning as ascribed to them in the RHP.