Allchem Lifescience Limited has taken a significant step towards going public by submitting its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). Established in 2017, this Indian company specializes in manufacturing active pharmaceutical ingredient (API) intermediates and specialty chemicals. With a strong focus on producing key starting materials (KSMs) and generic API intermediates, Allchem is poised to make a substantial impact in the pharmaceutical industry.
Company Overview and Market Position
Allchem Lifescience stands out in the chemical manufacturing sector, particularly in the production of piperazine derivatives. These derivatives are crucial for creating APIs like Quetiapine, a medication used in mental health treatment. According to a CARE report, as of December 2024, Allchem will have a reaction volume of 1,134 KL and a hydrogenation capacity of 60 KL, making it one of India’s largest players in this niche market.
Clientele and Financial Performance
The company has established a robust clientele, serving both domestic and international markets. Notable clients include:
- Alembic Pharmaceuticals Ltd
- Indoco Remedies Ltd
- Neuland Laboratories Ltd
- Vivatis Pharma GmbH
Allchem Lifescience has demonstrated consistent financial growth. From FY22 to FY24, its revenue from operations grew at a CAGR of 12.75%, reaching:
- ₹784.48 million for the six months ending September 30, 2024
- ₹1,374.21 million for FY24
- ₹1,057.19 million for FY23
- ₹1,081.01 million for FY22
Additionally, the profit after tax (PAT) surged with a CAGR of 28.65% from March 31, 2022, to March 31, 2024.
IPO Details and Fund Utilization
The upcoming IPO will feature a fresh issuance of equity shares with a face value of ₹10 each, targeting a total of ₹190 crores. It will also include an offer for sale of up to 7,155,000 equity shares, with half of these coming from Kantilal Ramanlal Patel and the other half from Manisha Bipin Patel, both of whom are selling shareholders.
Allchem Lifescience plans to utilize approximately ₹130 crores of the net proceeds for various purposes, including:
- Repayment or pre-payment of specific borrowings
- General corporate needs
- Supporting business operations
Emkay Global Financial Services Ltd is acting as the sole Book Running Lead Manager for this IPO, ensuring that Allchem Lifescience is well-positioned for a successful market entry.
Looking Ahead
As Allchem Lifescience prepares for this significant milestone, the company is set to enhance its market presence and continue its trajectory of growth in the pharmaceutical sector. With strong financials and a solid client base, the IPO could mark a new chapter for this innovative company.
For more updates on upcoming IPOs, stay tuned!
