The Hindu Business Line : Advanta India fixes IPO price band at Rs 600-650

RAISING FUNDS: Mr Jai Shroff (left), non-executive chairman, Advanta India Ltd, with Mr Rana Kapoor, CEO, YES Bank, at a press conference to announce the company's IPO in Mumbai on Tuesday. - Paul Noronha

Mumbai March 20 Agronomic seed company Advanta India Ltd proposes to raise at least Rs 220 crore through an initial public offering that is scheduled to open on March 26.

The company is offering 33.8 lakh equity shares of Rs 10 each. The price band has been fixed at Rs 600 to Rs 650 per equity share. The issue would constitute 20.08 per cent of the post-issue paid-up capital of the company.

Advanta India Ltd is a wholly owned subsidiary of United Phosphorus Ltd.

Earlier, the company sold 16,62,000 equity shares in a pre-IPO placement at Rs 625 each to Morgan Stanley Dean Witter Mauritius Company Ltd, Matterhorn Ventures, Citigroup Global Markets (Mauritius) Ltd, Morgan Stanley Investments (Mauritius) Ltd, Emerging Markets South Asian Stars Fund and Deutsche Securities Mauritius Ltd.

Advanta is engaged in the research, production and sale of hybrid cereal and oilseed crops. The company's key crops in India are rice, sunflower, corn, millet, grain, sorghum and mustard. The proceeds of the issue will be utilised to invest in the company's subsidiary Advanta Holdings BV, for working capital requirements and for general corporate purposes.

"Going forward, we will continue to increase our investment in research and development. Right now we spend about 6-7 per cent of our revenue on R&D," said Mr V.R. Kaundinya, Managing Director and Chief Executive Director, Advanta India Ltd.

The book running lead managers to the issue are YES Bank Ltd, UBS Securities India Pvt Ltd and SSKI Corporate Finance Private Ltd.

The issue closes on March 30.