IPO Details
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IPO Size
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Schedule of Allchem Lifescience Ltd
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About Allchem Lifescience Ltd IPO
The IPO of Allchecm Lifescience Ltd consists of a fresh issue and an offer for sale. Fresh issue aggregates up to ₹190 crores while offer for sale has up to 7,155,000 equity shares of face value of ₹10 each. It’s a 100% book-built offer.
Objectives of Allchem Lifescience Ltd IPO
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Repayment and/ or prepayment, in full or part, of certain borrowings availed by the company
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General corporate purposes
Allchem Lifescience Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue (in ₹ crore) | Up to 190 crores |
Offer for Sale | Up to 7,155,000 equity shares |
EPS in ₹ for FY 24 | 3.06 |
Allchem Lifescience Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the offer |
Non-institutional Bidders | Not less than 15% of the offer |
Retail Individual Bidders | Not less than 35% of the offer |
Industry Outlook
The global API Intermediates market stood at ~$26 billion in CY2019 and reached $31.3 billion in CY2023, growing at a CAGR of 5% over the period. Going further, from CY2024 to CY2029 the API intermediates market is projected to expand at a CAGR of 7%, driven by key factors such as the rising prevalence of chronic diseases, an increasing ageing population, and the robust growth of pharmaceutical manufacturing.
The domestic API intermediates market size was estimated to have remained at ~$6 billion in CY2023 and is projected to grow at a CAGR of 11-13% from CY2024 to CY2029.
Company Information
Allchem Lifescience Ltd 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.
Over the years, it has developed the ability to manufacture 263 products which demonstrates its strong focus on different chemistries in organic chemical compounds.
Allchem Lifescience Ltd Strengths
Long-standing Relationships with a Stable Customer Base
Allchem Lifescience Ltd over the years, established long-standing relationship with prominent domestic and international customers across the pharmaceutical and healthcare companies Bond Chemicals Limited, Chemosyntha, Hattori Corporation, MSN Laboratories Private Limited, Megafine Pharma Private Limited, Neogen Chemicals Limited and Olon Active Pharmaceutical Ingredients India Private Limited.
In each of the 6-month period ended September 30, 2024, and in Fiscal 2024, Fiscal 2023 and Fiscal 2022, it has catered to 159, 214, 188 and 180 customers, respectively.
Diversified Customer Base with Strong Export Credentials
One of the key factors of the company’s competitiveness is its diversified customer base. It has been focussed on diversifying its customer base within India and overseas. As of December 31, 2024, the company is catering to customers across 13 states in India and 22 countries overseas.
Well-established Manufacturing Facility with a Focus on Sustainability
As on December 31, 2024, its manufacturing facility had a total equipment capacity of 1,133.50 KL. Its manufacturing facility is equipped with sophisticated equipment such as hydrogenators, stainless steel (SS) reactors, glass lined reactors, high vacuum distillation units, agitated nutsche filter dryers, SS centrifuges, scrubbers, liquid blenders etc., that enables it to manufacture quality products.
Risks of Allchem Lifescience Ltd
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High Dependence on Application Industries: The company’s business is significantly dependent on demand from its application industries, in particular pharmaceutical industry. The company derived 96.64%, 90.85%, 93.86% and 90.48% of its revenue from operations during the 6 months ended September 30, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively, from the pharmaceutical industry. Any downturn in the application industries could have an adverse impact on the company’s business and results of operations.
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Reliant on Key Customers: The company’s business is significantly reliant on certain key customers. It derived 59.37%, 54.09%, 50.31% and 62.44% of its revenue from operations during the 6 months ended September 30, 2024, Fiscal 2024, Fiscal 2023 and Fiscal 2022, respectively, from its top 10 customers.
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Geographical Concentration: The company’s source of revenue is concentrated to certain geographical locations. Further, its revenue from operations is also concentrated in certain regions in India. Its inability to operate and grow its business in such locations may have an adverse effect on its business, financial condition, result of operation, cash flow and future business prospects.
All Financial Information about Allchem Lifescience
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Company Name | Total Income (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | Net Asset Value Per Equity Share (in ₹) |
|---|---|---|---|---|
Allchem Lifescience Ltd | 138.066 | 3.06 | 34.33 | 10.44 |
Ami Organics Ltd | 701.369 | 11.91 | 6.92 | 183.05 |
Aether Industries Ltd | 639.933 | 6.74 | 5.32 | 156.09 |
Shree Ganesh Remedies Ltd | 128.962 | 22.35 | 26.65 | 95.05 |
Bluejet Healthcare Ltd | 740.458 | 9.44 | 21.45 | 48.73 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- Registrar: MUFG Intime India Pvt Ltd
- Book Running Lead Manager: Emkay Global Financial Services Ltd
Business Model
The company’s primary business verticals include:
- Manufacturing API intermediates
- Specialty or fine chemicals
The company’s focus has been to identify potential demand for products, in particular, products that are difficult to source in India or which import substitutes are not easily available, develop such products and scale up production once the demand is in place.
Company Growth Trajectory
The company has demonstrated consistent growth in its financial performance across parameters. Its revenue from operations during the 6-month period ended September 30, 2024, and during Fiscal 2024, Fiscal 2023 and Fiscal 2022, was ₹78.448 crores, ₹137.421 crores, ₹105.719 crores and ₹108.101 crores. The company's profit after tax (PAT) grew at a CAGR of 28.67% from March 31, 2022 to March 31, 2024.
Market Position
Specialising in the production of key starting materials (KSMs), generic API intermediates and specialty chemicals, Allchem Lifescience Ltd has consistently had one of the highest returns on equity, among its identified peers. As of December 31, 2024, the company is catering to customers across 13 states in India and 22 countries overseas.
Allchem Lifescience Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 138.066 | 106.027 | 109.417 |
Profit / (loss) Before Tax (in ₹ crores) | 32.300 | 26.524 | 20.445 |
EPS in ₹ | 3.06 | 2.36 | 2.24 |
Allchem Lifescience Ltd Balance Sheet
| Parameters | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit / (loss) Before Tax (in ₹ crores) | 32.300 | 26.524 | 20.445 |
Net Cash (Used in) / Generated from Operating Activities (in ₹ crores) | 40.719 | 28.387 | 10.813 |
Net Cash (Used in) / Generated from Investing Activities (in ₹ crores) | (42.158) | (73.983) | (36.814) |
Net Cash (Used in)/ Generated from Financing Activities (in ₹ crores) | 1.395 | 45.779 | 25.941 |
Cash and Cash Equivalent at the End of the Year (in ₹ crores) | 0.175 | 0.219 | 0.036 |
How to Check Allotment Status of Allchem Lifescience Ltd IPO?
1. Visit the Registrar’s Website
Visit the official website of MUFG Intime India Private Ltd and choose ‘Public Issues’ from ‘Investor Services’ dropdown. Choose the company name from the ‘Select Company’ dropdown. Enter either your PAN, application number, DP client ID, etc and click on ‘Submit’ to check status.
2. Check on Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose 'Allchem Lifescience Ltd' in the next dropdown
- Enter your application number
- Enter your PAN
- Click on ‘Search’ to know the allotment status
3. Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Allchem Lifescience Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit' to know the allotment status.
How to Apply for Allchem Lifescience Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Allchem Lifescience Ltd IPO FAQs
What is the Allchem Lifescience Ltd IPO?
The IPO of Allchem Lifescience Ltd comprises fresh issue of equity shares aggregating up to ₹190 crores. The offer for sale is up to 7,155,000 equity shares of face value of ₹10 each.
When will the IPO of Allchem Lifescience Ltd go live?
The exact dates of the IPO are yet to be announced.
Who is the chairman and MD of Allchem Lifescience Ltd?
Bipin Patel is the chairman and MD of Allchem Lifescience Ltd.
From where can I read more about Allchem Lifescience Ltd IPO?
You can read more about Allchem Lifescience Ltd IPO from the company’s draft red herring prospectus here.
