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Informist, Thursday, Apr. 24, 2025

 

NEW DELHI – The Delhi High Court on Thursday refused to halt Allchem Lifescience Ltd.'s initial public offering on a permanent injunction suit filed by Alkem Laboratories Ltd. regarding the latter's 'Alkem' trademark. Alkem Laboratories said Allchem Lifescience has used a name similar to its trademark and the company's initial public offering would create confusion in people's minds.

 

Refusing to pass an interim injunction order, Justice Amit Bansal of the Delhi High Court noted Allchem's undertaking that in all future communications, including those relating to its initial public offering, the company would clearly state that it has no connection with Alkem Laboratories. In various communications, Allchem Lifescience has said it provides raw materials for active pharmaceutical ingredients and does not directly deal with pharmaceuticals, the court said. In the event Allchem Lifescience directly deals with pharmaceuticals, Alkem Laboratories can approach the court, Justice Bansal said.

 

The court referred the suit filed by Alkem Laboratories against Allchem Lifescience for mediation, and appointed advocate Sudhanshu Batra as the mediator.

 

In March, Allchem Lifescience had filed a draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering comprising a fresh issue of shares worth up to INR 1.9 billion and an offer for sale of 7.16 million shares. The company said in the draft papers that it would use INR 1.3 billion of the net proceeds to partially or fully repay some of its borrowings.

 

In court, Alkem Laboratories argued that Allchem going ahead with the initial public offering would cause the petitioner a financial loss, and urged the court to direct Allchem to not proceed with the offering without making changes to its name.

 

Allchem argued that while Alkem Laboratories is a pharmaceutical company, the respondent only provides raw materials to manufacture active pharmaceutical ingredients, and so there is little scope for confusion in the minds of the public.

 

On Thursday, shares of Alkem Laboratories Ltd. ended 0.6% lower at INR 5,201.20 on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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