Allchem Lifescience Files for IPO Amid Positive Growth
Allchem Lifescience, a Gujarat-based pharmaceutical manufacturer, has submitted preliminary documents to the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO). This move aims to raise capital through a fresh issuance of equity and an offer for sale (OFS) from its promoters.
IPO Details
The proposed IPO consists of two components: a fresh issue of equity shares worth up to ₹190 crore, and an OFS comprising 71.55 lakh equity shares held by key promoters, specifically Kantilal Ramanlal Patel and Manisha Bipin Patel. Currently, the promoters hold a full 100% stake in the company.
Utilization of Funds
From the fresh equity issue, Allchem Lifescience plans to allocate ₹130 crore towards reducing its debt burden. Further utilizations include general corporate purposes and supporting the company’s operational needs.
Company Overview
Established in 2017, Allchem Lifescience specializes in the production of active pharmaceutical ingredients (API) intermediates and specialty chemicals. The company is recognized for its manufacturing capabilities in piperazine derivatives, essential for APIs such as quetiapine, which is widely used to treat schizophrenia and bipolar disorder.
Product Portfolio
Allchem Lifescience has successfully developed 263 products, demonstrating its commitment to diversifying its offerings across different organic chemical compounds. The company strategically identifies market demand for products that are difficult to source in India, allowing them to focus on developing and increasing production to meet these needs.
Manufacturing and Client Base
The company operates a manufacturing facility located in Vadodara, Gujarat. It serves a broad client base of both domestic and international firms, including notable names like Alembic Pharmaceuticals, Indoco Remedies, and Neuland Laboratories. As of December 2024, Allchem Lifescience catered to 148 customers in India and 66 customers across 22 countries worldwide.
Financial Performance
Financially, Allchem Lifescience has seen robust growth. The company’s revenue from operations has experienced a compound annual growth rate (CAGR) of 12.75% between FY22 and FY24, with reported revenue reaching ₹7.84 crore for the six-month period ending on September 30, 2024. Additionally, profit after tax (PAT) surged with a CAGR of 28.65% from March 31, 2022, to March 31, 2024, culminating in a PAT of ₹1.09 crore for the same six-month period.
Investment Management
Emkay Global Financial Services has been appointed as the sole book-running lead manager for the IPO, guiding Allchem Lifescience through this crucial process.
