Allchem Lifescience, a Gujarat-based manufacturer specializing in active pharmaceutical ingredient (API) intermediates and specialty chemicals, has filed preliminary papers with the Securities and Exchange Board of India (SEBI) seeking approval for an initial public offering (IPO).
The proposed IPO includes a fresh issue of equity shares totaling up to ₹190 crore and an offer for sale (OFS) of 71.55 lakh equity shares by promoters Kantilal Ramanlal Patel and Manisha Bipin Patel.
The company plans to allocate ₹130 crore from the fresh issue towards debt repayment, with the remaining funds used for general corporate purposes and to support business requirements.
Emkay Global Financial Services is the sole book-running lead manager for the issue.
About the company
Established in 2017, Allchem Lifescience has developed the capability to manufacture 263 products, focusing on various chemistries in organic compounds.
The company is recognized for producing piperazine derivatives, essential raw materials for APIs like quetiapine, used in treating schizophrenia and bipolar disorder. Their manufacturing facility is located in Vadodara, Gujarat, and they serve both domestic and international clients, including Alembic Pharmaceuticals, Indoco Remedies, and Neuland Laboratories.
Financially, Allchem Lifescience’s revenue from operations grew at a compound annual growth rate (CAGR) of 12.75% between FY22 and FY24.
For the six months ending September 30, 2024, revenue was ₹7.84 crore. Profit after tax (PAT) increased at a CAGR of 28.65% from March 31, 2022, to March 31, 2024, with a PAT of ₹1.09 crore for the six months ending September 2024.
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