Alkem Labs Fixes IPO Price Band at Rs 1,020-1,050

Mumbai: Pharma firm, Alkem Laboratories has fixed the price band between Rs 1,020 and Rs 1,050 for its initial public offer (IPO), which will hit the capital markets on December 8.

The IPO, which will close on December 10, would be made through an offer of sale of up to 1.28 crore equity shares representing 10.75 per cent stake by the promoters.

The company has fixed the price band from Rs 1,020 to Rs 1,050 per equity share. At the lower price band, it would raise Rs 1,300 crore and would garner Rs 1,350 crore at the upper price band.

Alkem Laboratories plans to expand its footprint globally.

It had a portfolio of 705 brands in the domestic market as on September 30.

"We have total of 16 manufacturing facilities, of which 14 facilities at five locations in India and two in the US. Five of the facilities are USFDA approved, mainly catering to sales in US markets," Alkem Labs joint Managing Director Sandeep Singh told reporters here.

"Our most significant therapeutic areas in domestic market are anti-infectives, gastro-intestinal, pain and analgesics, and vitamins, minerals and nutrients.

"These therapeutic areas accounted for 80.7 per cent of our total sales in the domestic market for fiscal year 2015," Alkem Labs CEO Prabhat Agarwal said.

"We have four research and development facilities, two in India and two in the United States. We employed 480 scientists in research and development functions and our expenditure on R&D amounted to 4.5 per cent of our net revenues from operations for fiscal year 2015", Agarwal said.

"Having established ourselves in the Indian pharma market, we have expanded internationally through both organic growth and certain strategic acquisitions in the US, which is our key focus market," Singh said.

In the US, we have filed 69 abbreviated new drug applications (ANDAs), of which 21 have received final approval and three have received tentative approval and 45 are pending, he added.

For growth in the future, we are open to acquisitions, if we get favourable opportunities, Singh said.

The global coordinators and book running lead managers to the issue are Nomura Financial Advisory and Securities India, Axis Capital, J P Morgan India and Edelweiss Financial Services.