Indian drug manufacturer Alkem Laboratories Ltd is set to launch an initial public offering (IPO) worth nearly $210 million by the second week of December, three people involved in the share sale said on Tuesday.

The IPO will be India's third high-profile market debut in the closing months of 2015, after InterGlobe Aviation Ltd - the owner of India's biggest airline, IndiGo - raised $459 million and Coffee Day Enterprises Ltd raised $176 million.

Alkem, a producer of generic drugs, filed a draft prospectus with India's capital markets regulator in August for an IPO of up to 12.85 million equity shares, constituting 10.75 per cent of paid-up capital.

Market volatility prompted speculation that the offer could be postponed to 2016.

"It will be in the first or second week of December, though most likely the second," said one of the people involved in the deal, who were not authorised to speak with media on the matter and so declined to be identified.

The person said the company had yet to determine a valuation.

In January, people involved in the deal told Reuters the company planned to raise 15 billion to 18 billion rupees ($243 million to $291 million). But the people on Tuesday said the company would raise closer to $210 million.

While 2015 has seen a significant rise in debuts - the biggest in volume terms since 2012 - the IPO market is far from the record $8.5 billion of 2010, and the average size of listings has shrunk.

Hitting sentiment, Coffee Day slumped around 18 per cent on its debut on Monday.

Alkem booked net profit of 4.61 billion rupees and revenue of 37.83 billion rupees for the year through March 2015. The company has 16 manufacturing facilities - 14 in India and two in the United States.

Officials at Alkem were not reachable for comment.

Spokespeople for Nomura, Axis Capital, JP Morgan and Edelweiss - the bankers on the deal - did not respond to requests for comment.

($1 = 65.4300 Indian rupees)

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