Allchem Lifescience recently submitted its DRHP Draft Red Herring Prospectus with market regulator SEBI intending to launch its IPO (Initial Public Offering).
According to the DRHP, this IPO comprises a mixture of both a fresh issue worth ₹190 crore and an offer-for-sale of 71.55 lakh shares by promoters.
The proceeds of ₹130 crores raised through launching its IPO will be implemented for the repayment and pre-payment of the old existing debt of the company, while the remaining funds will be utilized for the company’s general corporate purposes.
On March 13, according to the DRHP, Allchem said that secured fund-based borrowings (Apart from vehicle loans) reached ₹131.74 crore.
The promoters are Kantilal Ramanlal Patel and Manisha Bipin Patel who will be selling shares of ₹35.77 lakh via the Offer-for-Sale component in the company.
Founded in 2017, Allchem Lifescience is a top-notch Indian manufacturer of API active pharmaceutical ingredients intermediates and specialty chemicals.
As of December 2024, according to the CARE Report, Allchem Lifescience became one of the largest manufacturers in India with a reaction volume of 1,134 KL and a hydrogenation capacity of 60 KL. They are one of the leading players in the manufacturing of derivatives of piperazine which are crucial raw materials used for producing APIs like Quetiapine.
Their manufacturing operations are carried out at their facility in Manjusar, Vadodara, Gujarat. Their manufacturing facility had a total equipment capacity of 1,133.50 KL as of December 31, 2024.
During the six months of September 30, 2024, the company catered to a total of 114 customers in India, while served to a total of 45 international customers.
For the 6-month ended period of September 30, 2024, the company generated a revenue of ₹617.34 million from operations in India, whereas, generated a revenue of ₹164.17 million from operations internationally.
The book-running lead manager of the issue is Emkay Global Financial Services. The equity shares of the public issue are proposed to be listed on the BSE Limited Bombay Stock Exchange and the NSE National Stock Exchange.
Allchem Lifescience IPO Prospectus:
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | To be Updated Soon |
Allchem Lifescience Company Financial Report
Amount ₹ in Crores
| Period Ended | Revenue | Expense | Profit After Tax |
| 2022 | ₹109.42 | ₹88.97 | ₹14.14 |
| 2023 | ₹106.03 | ₹79.50 | ₹17.99 |
| 2024 | ₹138.07 | ₹105.77 | ₹23.41 |
| September 2024 | ₹78.53 | ₹62.51 | ₹10.89 |
Allchem Lifescience IPO Valuation – FY2024
Allchem Lifescience IPO valuations detail like Earning Per Share (EPS), Price/Earning P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details.
| Earning Per Share (EPS): | ₹3.06 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 34.33% |
| Net Asset Value (NAV): | ₹10.44 |
Peer Group Comparison
| Company | EPS | PE Ratio | RoNW % | NAV | Income |
| Allchem Lifescience Limited | 3.06 | NA | 34.33% | 10.44 | 138.07 Cr. |
| Ami Organics Limited | 11.91 | 182.09 | 6.92% | 183.05 | 701.37 Cr. |
| Aether Industries Limited | 6.74 | 126.91 | 5.32% | 156.09 | 639.93 Cr. |
| Shree Ganesh Remedies Limited | 22.35 | 31.46 | 26.65% | 95.05 | 128.96 Cr. |
| Blue Jet Healthcare Limited | 9.44 | 79.87 | 21.45% | 48.73 | 740.46 Cr. |
Objects of the Issue
- Repayment and/ or pre-payment, in full or part, of certain borrowings availed by our Company; and
- General corporate purposes.
IPO Lead Managers aka Merchant Bankers
- Emkay Global Financial Services Limited
