The Hindu Business Line : TCG Lifesciences plans capital market foray

Mumbai, Oct. 3 TCG Lifesciences Ltd, a scientific research services and informatics organisation, proposes to enter the capital markets with an initial public offering and has filed the Draft Red Herring Prospectus (DRHP) with the Securities Exchange Board of India (SEBI) for the same.

The company plans to issue 95 lakh equity shares of Rs 10 each for cash at a price to be decided through 100 per cent ‘book-building’ process.

The issue comprises a fresh issue of 90 lakh equity shares to the public and a reservation of up to 5 lakh equity shares for eligible employees.

Employee Reservation

The company is considering a pre-IPO placement of up to 15 lakh shares with certain investors and the issue size offered to the public would be reduced to the extent of such pre-IPO placement, subject to a minimum issue size of 10 per cent of the post issue capital being offered to the public and employee reservation portion will be accordingly reduced.

While the exact amount to be raised will be known once the price is discovered under the book-building process, the proceeds, such as they are, would be used to finance capital expenditure to the tune of Rs 106 crore, Rs 200 crore for financing investments in subsidiaries, up to Rs 240 crore to prepay debt and the balance if any, would be used for general corporate purposes.

The company is promoted by Dr Purnendu Chatterjee and TCG Lifesciences Mauritius Ltd.

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