Allchem Lifescience, a Gujarat-based manufacturer of API intermediates and specialty chemicals, has filed draft papers with SEBI for an IPO worth ₹190 crore. The IPO consists of a fresh issue of equity shares worth ₹130 crore for debt repayment and corporate needs, along with an offer for sale (OFS) of 71.55 lakh shares by promoters.
Gujarat-based Allchem Lifescience, a manufacturer specializing in active pharmaceutical ingredient (API) intermediates and specialty chemicals, has filed draft papers with the Securities and Exchange Board of India (SEBI) for its ₹190 crore Initial Public Offering (IPO).
The IPO includes a fresh issue of equity shares worth ₹130 crore, which will primarily be used for debt repayment and general corporate expenses. Additionally, 71.55 lakh equity shares will be offered for sale (OFS) by promoters Kantilal Ramanlal Patel and Manisha Bipin Patel.
Founded in 2017, Allchem Lifescience has developed the capability to manufacture 263 products across various organic chemistries. The company is known for producing piperazine derivatives, key raw materials for APIs such as quetiapine, used in treating schizophrenia and bipolar disorder. Its manufacturing facility is located in Vadodara, Gujarat, and its client base includes major pharmaceutical companies like Alembic Pharmaceuticals, Indoco Remedies, and Neuland Laboratories.
Financially, the company’s revenue grew at a compound annual growth rate (CAGR) of 12.75% between FY22 and FY24, with a revenue of ₹7.84 crore for the six months ending September 30, 2024. Profit after tax (PAT) grew at a CAGR of 28.65% during the same period, reaching ₹1.09 crore for the six months ending September 2024.
Emkay Global Financial Services is the sole book-running lead manager for the IPO. Investors will be closely watching this offering as the company looks to expand its operations in the growing specialty chemicals and API market.
