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Parabolic Drugs IPO price band at Rs75-85/share

Parabolic Drugs IPO price band at Rs75-85/share
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First Published: Thu, Jun 10 2010. 11 32 AM IST
Updated: Thu, Jun 10 2010. 11 32 AM IST
Mumbai: Bulk drugmaker Parabolic Drugs Ltd has set a price band of Rs75-85 a share for its initial public offering (IPO) of equity shares.
The drugmaker plans to sell about 23.5 million shares to raise upto Rs200 crore through the issue, it said in a statement. The issue opens on 14 June and ends on 16 June for qualified institutional bidders. Individuals and non-institutional bidders can subscribe till 17 June, it added.
“The funds raised from the issue would be used for capacity expansion at various manufacturing units,” Pranav Gupta, managing director of the Chandigarh-based company told a news conference on Wednesday in Mumbai. The company would also repay outstanding loans worth 388.4 million rupees from the funds, he added.
The issue comprises sale 2.02 million equity shares by existing private equity investors BTS India and Alden global (Mauritius), along with a reservation of 500,000 shares for employees, it said in the statement..
BTS India and Alden Global have 19 percent and 4 percent stake respectively in Parabolic Drugs.
“The private equity players are partly off-loading their stake in the company,” Gupta said at the press conference.
The firm which makes active pharmaceutical ingredients and provides contract research and manufacturing services (CRAMS), plans to invest about Rs466.2 million in its unit Parabolic Research Labs. “We are planning to set up a new custom synthesis and manufacturing site under the research unit. The site will have in all 12 laboratories,” Gupta said.
The drugmaker had clocked a net profit of 211 million rupees on net sales of Rs390 crore in FY10.
Avendus Capital and ICICI Securities are the lead managers to the issue while SPA Merchant Bankers is the co-lead manager.
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First Published: Thu, Jun 10 2010. 11 32 AM IST
More Topics: Markets | Pharma | Parabolic | IPO | Medicines |