Allchem Lifescience Files DRHP With SEBI For Rs 190 Cr IPO

The Securities and Exchange Board of India (SEBI), the market watchdog, has approved the Draft Red Herring Prospectus (DRHP) from Allchem Lifescience Limited, an Indian producer of speciality chemicals and active pharmaceutical ingredients (API) intermediates. The IPO consists of an offer for sale (OFS) of up to 7,155,000 equity shares with face values of Rs 10 each, as well as an entirely novel issuance of equity shares with face values of Rs 10 each, totalling up to Rs 190 crores. Manisha Bipin Patel (Promoter Selling Shareholder) and Kantilal Ramanlal Patel have put up to 3,577,500 equity shares with face values of Rs 10 each and Rs 10, respectively, under the offer for sale segment of the IPO.

A total of approximately Rs 130 crores will be used from the net proceeds by Allchem Lifescience Limited for general corporate purposes, meeting the company's business needs, and the full or partial repayment or prepayment of some of the company's borrowings. The only Book Running Lead Managers involved in the IPO are Emkay Global Financial Services Limited.

Across all metrics, the company's financial performance has shown steady growth. Between FY22 and FY24, revenue from operations increased at a CAGR of 12.75%. Revenue from operations for FY24, FY23, and FY22 totalled Rs 784.48 million, Rs 1,374.21 million, Rs 1,057.19 million, and Rs 1,081.01 million for the six-month period that ended on September 30, 2024. Furthermore, from March 31, 2022, to March 31, 2024, the profit after tax (PAT) increased at a CAGR of 28.65%. For FY24, FY23, and FY22, the profit after tax totalled Rs 108.91 million, Rs 234.09 million, Rs 179.89 million, and Rs 141.39 million, respectively, for the six-month period ending September 30, 2024.

Allchem Lifescience Limited is an Indian company that was founded in 2017 and produces speciality chemicals and active pharmaceutical ingredients (API) intermediates. Key starting materials (KSMs), generic API intermediates, and speciality chemicals are the company's areas of expertise. The business is a major producer of piperazine derivatives, which are essential building blocks for the creation of APIs such as quetiapine. According to the CARE study, the firm is among the largest in India, with a hydrogenation capacity of 60 KL and a reaction volume of 1,134 KL as of December 2024.

The company can handle a broad range of industrial applications, such as pharmaceutical, veterinary, agrochemical, plastics, and electrochemical, thanks to the variety of its product line. Prominent domestic and foreign clients include Alembic Pharmaceuticals Limited, Bond Chemical Limited, Chemosyntha BV, Cohance Life Sciences Limited, Egene Co Limited, Hattori Corporation, Huaian Jiamu Biotechnology Co. Limited, Indoco Remedies Limited, Megafine Pharma (P) Limited, Micro Labs Limited, Moehs Iberica, S.L., MSN Laboratories Private Limited, Nagase India Private Limited, Neogen Chemicals Limited, Neuland Laboratories Limited, Olon Active Pharmaceutical Ingredients India Private Limited, Unichem Laboratories Limited, Vasudha Pharma Chem Limited, and Vivatis Pharma GmbH are all served by Allchem Lifescience. As of December 31, 2024, the company provides services to customers in 22 foreign nations and 13 Indian states.

It has 66 clients abroad and 148 clients in India as of FY24. The production plant of the firm is located at Manjusar, Vadodara, Gujarat. The manufacturing facility's overall equipment capacity was 1,133.50 KL as of December 31, 2024.