Alkem Lab approaches Sebi to raise Rs 1,500-3,500 cr via IPO

Drug maker Alkem Laboratories today filed draft papers with capital markets regulator Sebi to raise an estimated Rs 1,500-3,500 crore through an initial public offer (IPO).
This is one of the biggest offerings in the pharma space in a long time.
The move follows the blockbuster IPO of Syngene International, biotechnology major Biocon's research arm.
With this public offer, the company is expected to be valued at around Rs 15,000 crore.
The firm, which has a significant presence in the country, plans to expand its footprint internationally.
Mumbai-headquartered Alkem, which was founded in 1973, began operations as a healthcare marketing company.

Since then, it has grown to become the country's seventh largest pharmaceutical company with sales revenues exceeding USD 500 million with a CAGR of 16 per cent over the last five years.

This would also be be the first major IPO from the eastern region. The promoters of the company are from Bihar.
Prior to Alkem, in the pharma space, Pune-based Emcure Pharmaceuticals pulled out its proposed IPO application in June last year. It was planning to garner around Rs 500 crore.
After a quiet 2014, IPO market is buzzing again as 24 companies have already filed draft papers with Sebi, while some others, including GVK Airport, are in the process to file their initial papers.

While nine IPOs have already hit the market this year, many others are currently in the pipeline, including operators of popular brands like IndiGo, Cafe Coffee Day and Matrix.
Recently, the Rs 550-crore IPO of Syngene International was over-subscribed 32.03 times.
So far in 2015, nine firms have mobilised nearly Rs 4,400 crore through IPOs, higher than funds raised in the preceding two years.
A total of six IPOs had hit the market in the entire 2014 and together garnered just Rs 1,261 crore, while in 2013, three companies raked in Rs 1,284 crore through initial share plans.