Private fairness agency Quadria Capital not too long ago made a whole exit from its portfolio firm Concord Biotech which made its public debut final month

Delhi-based Akums Drugs and Pharmaceuticals Ltd, the nation’s largest contract manufacturing pharmaceutical firm, has picked 4 funding banks as advisors and kicked off the method to arrange for an inventory in 2024, a number of business sources with information of the matter instructed Moneycontrol.

Akums is backed by Quadria Capital, a number one healthcare-focused Asian non-public fairness agency which not too long ago exited Concord Biotech by promoting its complete 20 % stake, when the Ahmedabad-based biopharmaceutical agency made a wholesome market debut on the home bourses in August.

“Akums has picked ICICI Securities, Citi, Axis Capital and Ambit for the proposed IPO and the deal kick-off with all the advisors took place recently in Haridwar,” one of many individuals cited above instructed Moneycontrol.

A second individual instructed Moneycontrol that the dimensions of the IPO could be a operate of the ultimate valuations, the first part plus the stake offered by the administration and the investor Quadria which holds round 15 % stake.

“No final decision has been taken on the size as yet, but this issue should be a minimum of Rs 1,500 – Rs 2,000 crore,” the second individual elaborated.

A 3rd individual confirmed the syndicate of i-bankers and added that the IPO was aimed toward mopping up development capital to spice up capability, develop worldwide presence and supply an exit to Quadria Capital.

All the three individuals above spoke to Moneycontrol on situation of anonymity.

Moneycontrol has despatched reminders and is awaiting a response from Akums and Quadria Capital. The i-banks couldn’t be reached for a right away remark. This article will probably be up to date as quickly as we hear from any of the events.

A CLOSER LOOK AT AKUMS

Incorporated in 2004, Akums, together with its subsidiaries is a number one contract producer of formulations for home in addition to multinational pharmaceutical firms in India.  It has a producing share of greater than 12.5 % of the full medicine consumed in India as per ranking company ICRA.

The agency has 11 manufacturing amenities for its formulations manufacturing together with two API manufacturing amenities. It is current throughout the pharmaceutical supply system and manufactures tablets, capsules, smooth gelatins, dry syrups, liquid orals, and different comparable merchandise.

In an interview to Mint dated April 30, 2023, Akums Joint MD Sanjeev Jain mentioned, “Our international business is a very small percentage of the total business, and we plan to increase it. Getting listed on the bourses will help us grow our international presence since companies abroad prefer doing business with a listed entity. Also, it’s easier to attract good talent once a company is listed.”

AKUMS: THE GROWTH TRENDS AND TRIGGERS

According to a report on the agency by ranking company ICRA dated September 8, “Despite registering flattish revenues of Rs. 3,656.6 crore in FY2023 on account of a higher base in FY2022, on a consolidated basis, Akums has grown at a CAGR of 18.7% over FY2019 to FY2023 supported by scaling up its manufacturing volumes and widening its product and client bases.”

“In addition to the contract manufacturing business, the group is also increasing its footprint in the branded and trade generics markets and API business. While the current scale of these businesses is lower than the group’s overall revenues, they have healthy growth opportunities over the long term,” the ICRA report added.

THE QUADRIA CAPITAL ANGLE

In FY2020, Akums raised Rs 500 crore from Quadria Capital in lieu of 15.1 % stake; of which Rs 320 crore was infused into the corporate and the stability paid to promoters in opposition to sale of shares. The firm’s promoters, DC Jain and household, now personal 84.9 % stake within the firm.

Founded in 2012, Quadria has property underneath administration of over US$ 3.4 billion and invests within the high-growth healthcare sector of a number of the world’s fastest-growing economies in South Asia and Southeast Asia, together with healthcare supply, life sciences, medical know-how and related healthcare providers subsectors.