Avesthagen revives IPO plan; aims to raise Rs700 cr

Avesthagen revives IPO plan; aims to raise Rs700 cr

New Delhi: Life Sciences firm Avesthagen on Tuesday said it has revived plans for initial public offer (IPO) and may hit the capital market in the first half of next year to raise up to Rs700 crore.

The company is planning to file draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) and the IPO is scheduled for the first half of 2010, Avesthagen said in a statement.

The company would use the proceeds from IPO to commercialise 40 products, which are in different stages of development.

“The IPO is slated to coincide with the time that our bio-similars are ready to hit the market place. From an investment perspective I believe mid 2010 will see a global turnaround ...," Avesthagen CMD Villoo Morawala Patell said.

Avesthagen had planned to launch an IPO last year but due to the adverse market condition, it has shelved the idea.

The company, which currently holds 560 patents will be valued based on its patent and product portfolio, it said.