The Hindu : Surya Pharma to tap market

Online edition of India's National Newspaper
Friday, Dec 12, 2003

Business

Business

Surya Pharma to tap market

By Our Special Correspondent

NEW DELHI DEC. 11. The North India based Surya Pharmaceutical today announced its initial public offer of 30 lakh equity shares of Rs. 10 each at a premium of Rs. 35 per share aggregating Rs. 13.50 crores. "The issue proceeds would be used to fund the company's working capital requirements and to upgrade its current research and development infrastructure," Managing Director, Rajeev Goyal, said.

The IPO is slated to open on December 18. Surya, which at present has high cost loans of about Rs. 22 crores bearing interest rate in the range of 14-20 per cent, is also talking to banks and financial institutions for debt restructuring. "We are talking to our lenders for restructuring the loans as also looking at swapping them with foreign currency loans," Mr. Goyal said, adding that the recast exercise was likely to be completed by the end of the current financial year.

The company contract manufactures for Ranbaxy, Cipla, Merck, and Dr. Reddy's Labs, Mr. Goyal said adding that Surya would also take up contract research after upgradation of its R & D infrastructure.

It is engaged in the manufacture of active pharmaceutical ingredients, intermediates and formulations including cephalosporins, anti-histamines and antibiotics.

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