Allchem Lifescience, a prominent player in the pharmaceutical manufacturing sector based in Gujarat, has taken a significant step by submitting preliminary documents to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). This exciting move involves a fresh issuance of equity shares worth up to ₹190 crore and an offer for sale (OFS) of 71.55 lakh shares by its promoters, Kantilal Ramanlal Patel and Manisha Bipin Patel.
IPO Details and Financial Allocation
The IPO’s fresh equity share issue is strategically aimed at bolstering the company’s financial health. Specifically, ₹130 crore will be designated for debt repayment, while the remaining funds will cater to corporate needs and other business developments.
- Fresh Issue: Up to ₹190 crore
- OFS: 71.55 lakh equity shares by promoters
- Debt Repayment: ₹130 crore
About Allchem Lifescience
Founded in 2017, Allchem Lifescience has rapidly established itself as a manufacturer of 263 diverse products, excelling in various organic chemistries. The company is particularly noted for its production of piperazine derivatives, crucial components for active pharmaceutical ingredients (APIs) such as quetiapine, which is widely used in the treatment of schizophrenia and bipolar disorder.
Located in Vadodara, Gujarat, Allchem supplies its products to a mix of domestic and international clients, including industry leaders like Alembic Pharmaceuticals, Indoco Remedies, and Neuland Laboratories.
Impressive Financial Growth
Allchem Lifescience has showcased impressive financial growth, with its revenue from operations climbing at a compound annual growth rate (CAGR) of 12.75% from FY22 to FY24. For the first half of the fiscal year ending September 30, 2024, the company reported a revenue of ₹7.84 crore. Additionally, its profits after tax (PAT) have surged at a remarkable CAGR of 28.65% from March 31, 2022, to March 31, 2024, achieving a PAT of ₹1.09 crore for the six months concluding in September 2024.
Looking Ahead
As Allchem Lifescience gears up for its IPO, it is poised to make a notable impact within the pharmaceutical sector. With Emkay Global Financial Services serving as the lead manager for this crucial financial endeavor, the company is set to leverage its strong market positioning and financial performance to attract potential investors.
In summary, Allchem Lifescience’s IPO signifies a promising opportunity for investors, highlighting the company’s commitment to growth, innovation, and contribution to the pharmaceutical industry.
