Alkem Labs gets SEBI nod for IPO

Alkem Laboratories Ltd, a generic and specialty drug manufacturer, has received approval from the capital markets regulator Securities and Exchange Board of India to float an initial public offering (IPO).

The company had filed its draft red herring prospectus with SEBI in August this year. Although the company is yet to finalise a price band, the company is expected to raise around Rs 1,500 crore through an offer for sale by its promoters and other public individual shareholders.

The firm is looking to sell a stake of around 10.7 per cent in the IPO. Alkem has not raised any PE money in the past.

VCCircle had first reported in May that Alkem had picked three bankers for its IPO, one of the biggest in the pharmaceutical segment.

Its IPO is expected to be one of the biggest among the roster of companies in the queue to go public, behind names such as budget carrier IndiGo.

Alkem operates in acute and chronic therapeutic segments. It has extensive brand share in central nervous system, anti-diabetic, anti-malarial, cardiovascular, immunosuppressants, nutraceuticals and pain management products. It claims to be the top player in the domestic market for anti-infectives and has a strong position in gastro-intestinal and analgesic segments.

It offers generic and branded products in over 55 countries. It has a portfolio of 800 brands and has manufacturing plants across seven locations in India.

Established in 1973 in Patna, the company is promoted by chairman emeritus Samprada Singh and his family.

Nomura, Axis Capital, JP Morgan and Edelweiss are acting as the bankers for the IPO.

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