Akums Drugs & Pharmaceuticals Ltd. has approved a USD 24 million investment in its Zambian subsidiary, Akums Healthcare (Zambia) Private Limited, to establish a manufacturing facility. The board also reviewed and approved the unaudited financial results for the quarter and six months ended September 30, 2025. Further, Dr. Shantanu Rajaram Chobhe and Mr. Vinayak Bhat were appointed as Senior Management Personnel.
Investment in Zambian Subsidiary
The board has approved an investment of USD 24 million (approximately INR 200 Crores) in Akums Healthcare (Zambia) Private Limited. The investment will be made through equity and/or debt (secured by MIGA insurance). The purpose is to set up a manufacturing facility and expand operations in Zambia and neighboring African countries. The investment schedule is as follows:
- USD 2 million by March 2026
- USD 5 million by March 2027
- USD 5 million by March 2028
- USD 12 million by March 2028 in the form of dossiers
Senior Management Appointments
Dr. Shantanu Rajaram Chobhe has been designated as President (CQA) Formulation, and Mr. Vinayak Bhat as VP (Operations) API division, both effective November 13, 2025, as Senior Management Personnel.
Financial Performance Overview
The board reviewed and approved the unaudited standalone and consolidated financial results for Q2 2026, ended September 30, 2025. Key highlights from the standalone financials include:
- Total Income: ₹3,363.92 million
- Profit Before Tax: ₹312.01 million
- Profit for the period: ₹234.62 million
Consolidated financial highlights include:
- Total Income: ₹10,498.95 million
- Profit Before Tax: ₹656.73 million
- Profit for the period: ₹426.96 million
Utilization of IPO Proceeds
The company has utilized the net IPO proceeds (₹6,373.70 million) as detailed below:
- Repayment/prepayment of all or certain borrowings of the Company: ₹1,599.10 million
- Repayment/prepayment of all or certain borrowings of subsidiaries: ₹2,270.90 million
- Funding incremental working capital requirements: ₹550.00 million
- Pursuing inorganic growth initiatives: ₹278.70 million
- General corporate purposes: ₹1,675.00 million
Source: BSE
