Allchem Lifescience Limited has filed its draft papers with SEBI for an IPO to raise ₹190 crore through a fresh issue. The company, specializing in active pharmaceutical ingredients and specialty chemicals, has shown consistent financial growth. The IPO proceeds will be used for debt repayment and business expansion.
Allchem Lifescience Limited, a key player in the pharmaceutical and specialty chemicals sector, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO).
Company Overview
Founded in 2017, Allchem Lifescience specializes in active pharmaceutical ingredients (API) intermediates and specialty chemicals. The company plays a crucial role in manufacturing piperazine derivatives, essential for producing drugs like Quetiapine. With a reaction volume of 1,134 KL and a hydrogenation capacity of 60 KL, it ranks among India’s top producers, according to a CARE Ratings report.
Allchem serves both domestic and international clients, including Alembic Pharmaceuticals, Micro Labs, Indoco Remedies, Neogen Chemicals, and MSN Laboratories, among others.
Financial Performance
The company has shown consistent growth in recent years:
- Revenue grew at a CAGR of 12.75% from FY22 to FY24.
- Revenue figures:
- ₹784.48 million (six months ending September 2024)
- ₹1,374.21 million (FY24)
- ₹1,057.19 million (FY23)
- ₹1,081.01 million (FY22)
- Profit after tax (PAT) grew at a CAGR of 28.65% from March 2022 to March 2024.
IPO Details
The IPO consists of:
- A fresh issue of equity shares worth ₹190 crore (face value ₹10 each).
- An offer for sale (OFS) of up to 7,155,000 equity shares.
The OFS includes:
- 3,577,500 shares from Kantilal Ramanlal Patel.
- 3,577,500 shares from Manisha Bipin Patel.
Utilization of Funds
Allchem Lifescience plans to use approximately ₹130 crore from the IPO proceeds for:
- Repayment or prepayment of existing borrowings.
- General corporate purposes and business expansion.
Emkay Global Financial Services Ltd is the sole book-running lead manager for the IPO.