- Quadria generates a 3x return in 4 years of its initial investment
- Transaction marks Quadria’s second pharmaceutical exit via IPO in India in the last year
- IPO subscribed close to 63x, with participation from several marquee investors
NEW DELHI / SINGAPORE, August 6, 2024 – Quadria Capital (“Quadria”), one of Asia’s largest healthcare-focused private equity firms, today announced the sale of a 10% stake in Akums Drugs and Pharmaceuticals Ltd. (“Akums”) as part of its initial public offering (IPO).
The IPO, which closed on August 1, was one of the largest pharmaceutical IPOs in the last five years in India and received overall subscription of close to 63 times, with the portion reserved for qualified institutional buyers subscribed more than 90 times. The anchor book saw participation from marquee investors like Smallcap World Fund (Capital World), BlackRock, Abu Dhabi Investment Authority (ADIA), HSBC Global, SBI Mutual Fund, DSP India Fund, Neuberger Berman, Carmignac, and Loomis Sayles, among others.
The transaction, through which Quadria will retain a 5% stake in Akums, represents the firm’s second exit from a pharmaceuticals company through public markets in the last year, following its exit from biopharmaceutical company Concord Biotech in August 2023.
Established in 2004, Akums is the largest Indian market-focused pharmaceutical contract manufacturing (CDMO) company, offering a comprehensive range of pharmaceutical products and services in India and overseas. Akums has recently entered into the active pharmaceutical ingredients (API) segment and has a presence in domestic and export formulations. Akums has 15 state-of-the-art manufacturing facilities and four R&D centres that serve over 1,500 customers across the pharmaceuticals, API, nutraceuticals, cosmetics and derma segments.
Quadria’s investment in Akums in November 2019 was driven by its early conviction in the pharmaceutical outsourcing segment, Akums’ dominant position in the domestic contract manufacturing space and ability to provide a proxy to the broader Indian branded formulations market. Akums’ focus on improving accessibility and quality of generic drugs resonated with Quadria’s mission and aligned with the firm’s impact-driven approach to investments. During the course of Quadria’s investment, Akums has more than doubled its sales as a result of strong organic growth, significant capacity expansion, and focus on innovation. Through Quadria’s partnership, Akums has also strengthened its ESG management systems and processes over time and has taken steps to manage its environmental sustainability by focusing on energy management, waste management, and water management initiatives.
Sunil Thakur, Partner, Quadria Capital, said: “We are thrilled to see Akums emerge as a publicly listed company and are proud of the journey we have shared over the past several years. Our partnership has been built on a shared vision to expand access to high-quality healthcare products, and it has been a great privilege to support the company’s growth and expansion. We have full confidence in Akums management’s ability to continue achieving sustained growth, and we wish them success as they embark on this new chapter.”
Sanjeev Jain, Co-Founder & Managing Director, Akums Drugs & Pharmaceuticals Ltd., said: “This IPO marks a significant milestone in Akums’ growth story. I am immensely proud to welcome our new shareholders and feel a deep sense of responsibility towards safeguarding the interests of our retail shareholders. As we enter a new growth phase, we look forward to building on our strong foundation to advance our mission of improving lives through innovative healthcare products.”
Sandeep Jain, Co-Founder & Managing Director, Akums Drugs & Pharmaceuticals Ltd., said: “Our journey to date has been driven by the dedication and commitment of our talented team. As we go public, we are more determined than ever to continue pushing boundaries, delivering exceptional value, and building a future that reflects our core values and ambitious vision.”
About Akums Drugs and Pharmaceuticals Ltd.
Akums is a pharmaceutical contract development and manufacturing organisation (CDMO), offering a comprehensive range of pharmaceutical products and services in India and overseas. Akums has 15 manufacturing and four R&D facilities that create products for the pharmaceuticals, API, Nutraceuticals, cosmetics and derma segments. The company serves over 1,500 customers including the top 26 of the 30 leading pharmaceutical companies in India in terms of sales such as Sun Pharmaceutical Industries, Cipla, Dr Reddy’s Laboratories, Mankind Pharma, Alkem Laboratories and Hetero Healthcare, among others.
For more information, please visit www.akums.in
About Quadria Capital
Founded in 2012, Quadria is an Asia healthcare-focused private equity firm with assets under management of over US$3.4 billion, maximising returns by investing in the high growth healthcare sector of some of the world’s fastest-growing economies in South Asia and Southeast Asia, including Healthcare Delivery, Life Sciences, Medical Technology and Associated Healthcare Services subsectors. The firm aims to create significant and sustainable shareholder value by supporting strong, professionally run, stable and scalable healthcare organisations to address the critical and undersupplied healthcare needs in Asia.
For more information, please visit www.quadriacapital.com
Investor Relations Contact
Gerald Ng, Head of Investor Relations
Email: [email protected]