The Hindu Business Line : Pochiraju Industries IPO to open on January 15

BREAKING NEW GROUND: Mr P. Sudhakar (left), MD, Pochiraju Industries Ltd, with Mr M. Durga Prasad, Director, at a press conference to announce the company's IPO in Mumbai on Wednesday. - Paul Noronha

Mumbai , Jan. 10

Pochiraju Industries Ltd, a producer and exporter of roses, is coming out with a public issue of equity shares of Rs 10 each through the book-building process in the price band of Rs 25 to Rs 30 per share. The proceeds of the issue will be used to part fund expansion plans of the company. The company proposes to issue 1.12 crore shares.

The issue opens on January 15 and closes on January 18. About 50 per cent of the issue has been allocated on a proportionate basis to qualified institutional buyers, 5 per cent of which will be available for allocation on a proportionate basis to mutual funds only. At least 15 per cent of the net issue to public shall be allotted on a proportionate basis to non-institutional bidders and around 35 per cent of the issue shall be available for retail individual bidders.

The company proposes to set up a bio-fermentation and protein purification unit at the Shapoorji Pallonji Biotech Park near Hyderabad. "We plan to set up the plant with a capital outlay of Rs 37.57 crore through the proceeds of the IPO and term loans," Mr P. Sudhakar, Managing Director, told Business Line.

The company will also set up a bio-parental unit with an investment of Rs 10 crore, he added. Allbank Financial Ltd and Aarthi Consultants are the book running lead managers to the issue.