Alkem Laboratories, the country's fifth-largest drugmaker by domestic sales, says it aims to double revenues by 2017 to be a billion-dollar plus company by 2017.
The company has been preparing to hit the capital markets, and in an exclusive conversation with CNBC-TV18's Archana Shukla, the company's managing director BN Singh said the groundwork is ready and the IPO process to raise nearly Rs 1500 crore will be completed by December.
Below is the transcript of the interview on CNBC-TV18.
Q: By when are you expecting Sebi approval for the IPO?
A: I think by November or December 2015 it should be through subject to the approval we get from Sebi.
Q: What sort of stake you would be diluting through this exercise and roughly what sort of valuation for the company are you seeking?
A: Right now we are diluting 10 percent. Then we will have to do it 20 percent and 25 percent. It is a time taking process.
Q: What sort of valuation are you looking for the company?
A: We expect minimum Rs 15000 crore but let’s see.
Q: Rs 15000 crore valuation for the company when you hit the capital markets?
A: Yes.
Q: What is the real intent for going to the capital markets with an IPO, what is the need and what is the reason why the company is looking for an IPO right now?
A: We are expanding in a big way and now our thrust is on international business. We are among top 5 in the domestic business. So, definitely there is need of investment.
We feel that at international level also in order to be a very successful global company it is essential to become a listed company, for better governance, transparent governance it is necessary.
We are going for growth. By 2017, next year end Alkem should be USD 1 billion company. Our dream is that in next five years 50 percent of the sales of Alkem should come from international business.
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