Allchem Lifescience Seeks SEBI’s Approval For IPO
Allchem Lifescience Seeks SEBI’s Approval For IPO
Expects to raise Rs.190 crore including a fresh issue of equity shares and an offer for sale by promoters
Gujarat-based drugmaker Allchem Lifescience has sought regulatory approval from the Securities and Exchange Board of India (SEBI) for an IPO.
The company's proposed IPO comprises a fresh issue of equity shares of Rs.190 crore and an offer for sale (OFS) of 71.55 lakh equity shares by promoters.
Those selling shares in the OFS are Kantilal Ramanlal Patel and Manisha Bipin Patel.
Presently, the promoters and promoter group entities hold a 100 percent stake in the company.
Allchem proposes to utilize the proceeds from the fresh issue worth Rs.130 crore towards debt payment. A portion will be used for general corporate purposes and support the company’s business requirements.
Incorporated in 2017, Allchem has a manufacturing facility in Vadodara, Gujarat. The Indian manufacturer of active pharmaceutical ingredients (API) produces key starting materials (KSMs), generic API intermediates and specialty chemicals.
The company is a key player in developing piperazine derivatives, critical raw materials for producing APIs like quetiapine, used in treating schizophrenia and bipolar disorder.
Over the years, it manufactured 263 products, demonstrating its strong focus on different chemistries in organic chemical compounds. It focuses on identifying potential demand for products, particularly those that are difficult to source in India or import substitutes which are not easily available.
Once the demand arises, it intends to develop those products and scale up production.
Allchem caters to prominent domestic and international customers, including Alembic Pharmaceuticals, Bond Chemical, Indoco Remedies, Micro Labs, MSN Laboratories, Nagase India, Neogen Chemicals, Neuland Laboratories, and Unichem Laboratories.
Until recently, the company has served 148 customers across 13 states in India and 66 customers in 22 countries overseas.
