The Hindu : Business : Indoco Remedies to tap market

Online edition of India's National Newspaper
Tuesday, Dec 14, 2004

Business

Business

Indoco Remedies to tap market

By Our Staff Correspondent

MUMBAI, DEC. 13. Indoco Remedies Ltd. (IRL) a company into contract manufacturing of pharmaceuticals, is entering the capital market with an initial public offering of 30 lakh equity shares of Rs. 10 each for cash at a price to be discovered from the book-building process. The issue is being made through a 100 per cent book building process and the price band has been fixed at Rs. 220-245. The issue opens on December 17.

Of the total shares to be issued, 50 per cent has been reserved for allotment on a discretionary basis to qualified institutional buyers, another 25 per cent is reserved for allotment on a proportionate basis to non-institutional investors and the balance 25 per cent to retail bidders on a proportionate basis.

The company focuses on therapeutic segments such as anti-colds, anti-spasmodics, anti-infectives, stomatologicals, anti-fungals, anti-inflammatory, multi-vitamins and cough and cold preparations besides certain lifestyle diseases such as diabetics and cardio-vascular. Some of the leading brands in Indoco's basket include Febrex Plus, Cyclopam, Vepan, Tuspel Plus and Atherochek.

The equity stakes of the promoters and the promoting group now at 79.75 per cent of the present paid up equity capital of Rs. 8.82 crores, would decrease to 59.51 per cent after the issue. The equity capital after the IPO will be Rs. 11.82 crores.

The proceeds of the issue will be used to part fund the company's expansion programme of a formulation plant at Baddi, Himachal Pradesh, an active pharmaceutical ingredient (API) manufacturing plant, an R&D centre and repayment of loans for brand acquisition and purchase of office premises.

IRL has five manufacturing facilities at Goa (two units), Andheri, Tarapur and Waluj.

Printer friendly page
Send this article to Friends by E-Mail

Business