The Hindu Business Line : Ammana Bio plans Rs 22-cr public issue

NEW SOURCE: Mr C.B. Mouli (right), Chairman, Ammana Bio Pharma Ltd, and Mr B.G.K. Murthy, ED, at a press conference in Mumbai on Monday to announce the company's IPO. - Paul Noronha

Mumbai March 26 Ammana Bio Pharma Ltd, manufacturer of ethanol, will enter the capital market with an initial public offering of equity shares aggregating Rs 21.66 crore through 100 per cent book building process.

The price band has been fixed between Rs 12 and Rs 14 per equity share of face value of Rs 10 each.

The issue opens on March 28 and closes on April 5.

The company has an existing capacity to manufacture 90 million litres of ethanol per annum and currently produces 30,000 litres of ethanol per day. It now proposes to expand the existing facilities to produce 30,000 litres per day of extra neutral alcohol along with ethanol. It has received orders from HPCL and BPCL for supply of ethanol.

The proceeds of the issue will be used to fund the expansion of the existing unit and also commission a sweet sorghum project at its existing location in Chittoor district, Andhra Pradesh. The company recorded total income at Rs 9.36 crore for the nine months ending December 2006 and the net profit stood at Rs 0.39 crore.

Centrum Capital is the book running lead manager and syndicate member to the issue.

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Ammana Bio plans Rs 22-cr public issue