Allchem Lifescience, a leading manufacturer of speciality chemicals in Gujarat, has filed preliminary papers for an IPO issue with SEBI. The company wants to raise ₹190 crore as fresh capital for funding business growth. Its promoters, Manisha Bipin Patel and Kantilal Ramanlal Patel have an offer for sale (OFS) of over 71 lakh equity shares.
The company has appointed Emkay Global Financial Services as the sole merchant banker for managing the issue. It aims to allocate ₹130 crore for debt repayment, and use ₹60 crore for supporting business requirements.
The company was established in 2017 and can manufacture nearly 263 products. It specialises in producing piperazine derivatives and quetiapine. These are crucial ingredients for treatment of mental health disorders such as schizophrenia. They serve both international and domestic clients, such as Indoco Remedies, Alembic Pharmaceuticals, and Neuland Laboratories.
The company has conventionally focused on identifying products that are scarce but high in demand, including import substitutes. In December 2024, the company had served 66 customers overseas (22 countries) and 148 customers (13 states) in India.
During 2022-24, Allchem Lifescience’s operational revenues grew at a CAGR of 12.75%. Its PAT (profit after tax) also grew at a CAGR of 28.65% and reached ₹1.09 crore in September 2024. During March-September 2024, the company recorded revenues worth ₹7.84 crore.
Emkay Global Financial Services was founded in 1995 and is engaged in providing financial advisory services. Its client base included prominent foreign institutional investors (FIIs), banks, MSMEs, hedge funds, domestic mutual funds, private equity firms, insurance companies, corporate houses, and high net worth individuals (HNIs).
It specialises in providing futures and options trading services. It also provides services related to investment banking, portfolio management, commodities, and retail broking services.
Allchem Lifescience’s ₹190 crore IPO aims for debt reduction and growth. Its strong financial performance coupled with Emkay Global’s backing signals a promising entry for it into the specialty chemicals sector. This can complement the rise of India’s pharmaceutical industry and chemicals sector in the world.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Mar 17, 2025, 1:59 PM IST
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