Allchem Lifescience, the active pharmaceutical ingredients (API) intermediates and speciality chemicals manufacturer, has filed preliminary papers with the SEBI to raise funds via initial public offering for debt reduction.
The IPO will be a combination of fresh issuance of shares worth Rs 190 crore, and an offer-for-sale of 71.55 lakh shares by promoters.
Promoters Kantilal Ramanlal Patel, and Manisha Bipin Patel will be selling 35.77 lakh shares each via offer-for-sale.
The Gujarat-based company intends to utilise Rs 130 crore out of fresh issue proceeds for repaying debt and the remainder for general corporate purposes. "As of February 2025, the outstanding balance of our secured fund based borrowings (long term and short term, but excluding vehicle loans) was Rs 131.74 crore," Allchem said in its DRHP filed on March 13.
The company specialises in the production of key starting materials (KSMs), generic API intermediates and specialty chemicals compares with the listed peers like Ami Organics, Aether Industries, Shree Ganesh Remedies, and Blue Jet Healthcare.
Allchem is a key player in manufacturing derivatives of piperazine as per the CARE report. Piperazine derivatives are critical raw materials for producing APIs like Quetiapine.
API intermediates and specialty chemicals businesses contributed 81 percent and 18 percent to company's revenue, respectively in the financial year ended March 2024. The company recorded 30 percent growth in profit and revenue each for the FY24 at Rs 23.4 crore and Rs 137.4 crore, respectively, compared to previous year. Profit for the first half of FY25 stood at Rs 10.89 crore on revenue of Rs 78.4 crore.
Emkay Global Financial Services is appointed as the book running lead manager to the issue.
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