Allchem Lifescience IPO

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

• Repayment and/ or prepayment, in full or part, of certain borrowings availed by the company

• General corporate purposes

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.

Risks of Allchem Lifescience Ltd

• 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.

• 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.

• 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.

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.

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 Neo 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.