Alkem Laboratories escalates fund of Rs 395.54 crore ahead of IPO

Alkem Laboratories (Alkem) has raised about Rs 395.54 crore from 25 anchor investors on December 7, 2015. The company raised funds ahead of its Rs 1350 crore initial public offer (IPO). Its subscription for an IPO started today i.e December 8, 2015.

Alkem issued around 37.67 lakh shares out of 25 investors.The major ones include Abu Dhabi Investment Authority, Morgan Stanley, Apax Global, Kuwait Investment Authority, Grandeur Peak International, DB International, Birla Mutual Fund, ICICI Prudential Mutual Fund, SBI Mutual Fund, HDFC Mutual Fund, Franklin Mutual Fund, Kotak Mutual Fund, Reliance Mutual Fund and IDFC Mutual Fund.

Alkem has set the price band for IPO as 1020-1050 per equity share with a face value of Rs 2. The company's IPO will close on December 10, 2015. The offer is made upto an issue of 1.29 crore equity shares which contributes to 10.75 per cent stake by promoters. Alkem would raise Rs 1311 crore at lower price band, while it will lift up Rs 1350 crore at upper price band.

On the financial front, Alkem revenue boosted by 22.3 per cent to Rs 3788 crore in FY15 on yearly basis. The company's international geographic segment contributed 25.3 per cent towards total revenue and the remaining 74.7 per cent from the domestic segment as of FY15. Its revenue increased by 36 per cent to Rs 2570 crore in H1FY16 on yearly basis. Alkem's operating profit and net profit also rose by 150 per cent in H1FY16 on yearly basis.

Alkem, the fifth largest pharmaceutical company in India by domestic sales is engaged in the development, manufacturing and sale of pharmaceutical and nutraceutical products. The company was established in 1973. It produces branded generics, generic drugs, active pharmaceutical ingredients (APIs) and Nutraceuticals. Alkem has its marketing footprint across India and 55 countries internationally. However, the United States remains their primary market outside India. 

The company has a portfolio of around 800 brands and has a total of 16 manufacturing facilities: 14 manufacturing facilities at 5 locations in India and 2 in the United States. Five of their facilities are USFDA, TGA and UK-MHRA approved. Alkem's out-of-India manufacturing facilities include 12 for manufacturing formulations and 2 for manufacturing APIs.