Allchem Lifescience Files Draft Papers For IPO With SEBI, Check Details Here

The proposed initial public offering (IPO) comprises a fresh issue of equity worth Rs 190 crore, along with an offer-for-sale (OFS) component of 71.55 lakh equity shares.

The pharma player plans to allocate Rs 130 crore from the proceeds towards debt repayment.

Source : Groww

Allchem Lifescience submitted the draft papers for its maiden listing with the Securities and Exchange Board of India (SEBI) on Friday. The draft red herring prospectus (DRHP) of the Gujarat-based pharmaceutical company revealed that the proposed initial public offering (IPO) comprises a fresh issue of equity worth Rs 190 crore, along with an offer-for-sale (OFS) component of 71.55 lakh equity shares.

The OFS is being provided by promoters Kantilal Ramanlal Patel and Manisha Bipin Patel, reported PTI . The draft papers revealed that promoters and promoter group entities hold a 100 per cent stake in the company.

The firm intends to utilise the funds raised from the maiden issue for general corporate purposes and to provide support for the company's business requirements. Additionally, the pharma player plans to allocate Rs 130 crore from the proceeds towards debt repayment.

Emkay Global Financial Services is acting as the sole book-running lead manager for the issue. 

About Allchem Lifescience

Established in 2017, Allchem Lifescience operates as a manufacturer of active pharmaceutical ingredient (API) intermediates and specialty chemicals in India. The company focuses on producing key starting materials (KSMs), generic API intermediates, and specialty chemicals. 

It gained recognition as a leading producer of piperazine derivatives, essential raw materials in manufacturing APIs such as quetiapine, which is used in treating schizophrenia and bipolar disorder.

The company also developed expertise in manufacturing 263 products, demonstrating its strong emphasis on various organic chemical compounds. Its strategy involved identifying potential demand for hard-to-source or import-dependent products in India, developing them, and scaling up production once sufficient demand existed.

Currently, the company operates a manufacturing unit in Vadodara, Gujarat, catering to a diverse customer base both domestically and internationally. Among its notable clients were Alembic Pharmaceuticals, Bond Chemical, Indoco Remedies, Micro Labs, MSN Laboratories, Nagase India, Neogen Chemicals, Neuland Laboratories, and Unichem Laboratories. 

As of December 2024, Allchem Lifescience  catered to a customer base across 13 Indian states and 22 international markets. In FY24, it served 148 domestic customers and 66 overseas clients.

Financially, the company experienced steady growth. Its revenue from operations expanded at a compound annual growth rate (CAGR) of 12.75 per cent between FY22 and FY24. For the six-month period ending on September 30, 2024, the company reported a revenue of Rs 7.84 crore. Additionally, its profit after tax (PAT) climbed at a CAGR of 28.65 percent between March 31, 2022, and March 31, 2024. The PAT for the six months ending September 2024 stood at Rs 1.09 crore.