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Mumbai , Nov. 19

THE Chandigarh-based Surya Pharmaceuticals Ltd will list on the NSE and the BSE to issue an initial public offering (IPO) in December.

The issue will comprise 30 lakh equity shares of Rs 10 each for cash at a premium of Rs 35 each aggregating Rs 13.5 crore.

While 30 per cent of the proceeds from the IPO would be ploughed into infrastructure and machinery for continued research and development activities, the balance will be used towards enhancing the company's working capital.

After the IPO, the working capital would be increased to Rs 35 crore-40 crore, up from Rs 22 crore and paid-up capital to Rs 10.5 crore from Rs 7.5 crore.

Also, the promoters' stake would come down to 72 per cent with the balance being held by the public, Mr Rajeev Goyal, Managing Director, Surya Pharmaceuticals, told presspersons here on Wednesday.

Currently, the bulk drug manufacturer is utilising 60 per cent of the plant capacity and expects to increase this to 80 per cent by the year-end. With its four manufacturing units catering to bulk drug manufacture coupled with the production of antibiotics and drug intermediates, the company is now looking at improving processes involved in drug formulation.

According to Mr Goyal, Surya Pharmaceuticals will also focus on research and development activities to optimise cost, increase process yield, invent better process (reverse engineering) and waste recovery methods.

The company's plans to make the manufacturing units FDA (Food and Drug Administration) compliant are on the cards.

"From its inception, the company had expanded its presence to four manufacturing units across Baddi I & II in Himachal Pradesh, Banur in Punjab and Panchkula in Haryana. Of these units, we have obtained the WHO GMP certification for two of the units in Banur and Baddi. This is a step away from complying to the US-FDA requirements," Mr Goyal said.

With a turnover of Rs 140 crore for 2002-03 and a profit before tax of Rs 6.4 crore, the company expects to record a growth of 25-30 per cent with a thrust on the domestic market, he added.

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