Allchem Lifescience files IPO papers with SEBI; firm aims to raise ₹190 crore via fresh issue

The Gujarat-based company's proposed IPO comprises a fresh issue of equity shares aggregating up to ₹190 crore and an offer for sale (OFS) of 71.55 lakh equity shares by promoters, according to the draft red herring prospectus (DRHP).

Those selling shares in the OFS are Kantilal Ramanlal Patel and Manisha Bipin Patel.

Currently, promoters and promoter group entities hold a 100% stake in the company.

Allchem Lifescience proposes to utilise proceeds from the fresh issue worth ₹130 crore towards debt payment, while a portion will be used for general corporate purposes as well as to support the business requirements of the company, according to its draft papers filed on Friday.

Incorporated in 2017, Allchem Lifescience is an Indian manufacturer of active pharmaceutical ingredients (API) intermediates and speciality chemicals.

It specialises in the production of key starting materials (KSMs), generic API intermediates, and specialty chemicals.

The company is a key player in manufacturing piperazine derivatives, which are critical raw materials for producing APIs like quetiapine, which is used in treating schizophrenia and bipolar disorder.

Over the years, Allchem Lifescience has developed the ability to manufacture 263 products, which demonstrates their strong focus on different chemistries in organic chemical compounds.

The company's focus has been to identify potential demand for products, in particular, products that are difficult to source in India or which, being import substitutes, are not easily available, develop such products, and scale up production once the demand is in place.

The company has a manufacturing facility in Vadodara, Gujarat.

Allchem Lifescience 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.

As of December 2024, the company served customers across 13 states in India and 22 countries overseas. As of FY24, it had 148 customers in India and 66 customers overseas.

Allchem Lifescience financials

On the financial front, the company's revenue from operations has grown at a compound annual growth rate (CAGR) of 12.75% between FY22 and FY24. The revenue figures for the six months ended September 30, 2024, were at ₹7.84 crore.

Additionally, the profit after tax (PAT) has grown at a CAGR of 28.65% from March 31, 2022, to March 31, 2024. The PAT figures for the six months ended September 2024 stood at Rs 1.09 crore.

Emkay Global Financial Services is the sole book-running lead manager for the issue.