Mumbai, June 14
THE price band for Chandigarh-based Nectar Lifesciences Ltd's forthcoming initial public offering has been fixed at Rs 200-240 per equity share of Rs 10 each.
The company looks to raise about Rs 90 crore through its IPO that is scheduled to open on June 22.
The IPO constitutes about 26 per cent of the company's enhanced equity capital.
The money will be used to finance a manufacturing facility in Baddi, Himachal Pradesh, which will make finished dosage forms of medicine; a sterile cephalosporin plant at Derabassi and an R&D and corporate quality control centre.
Nectar Lifesciences was started in 1995 as a joint-sector project with Punjab State Industrial Development Corporation, said Mr Sanjiv Goyal, Managing Director. The company imports drug intermediates from Chempharma, its wholly-owned subsidiary in Sri Lanka, said Mr Goyal.
Nectar Lifesciences hopes to expand its manufacturing facility in Sri Lanka, a company official said.
On the outstanding export obligations, the company has applied for an extension, Mr Goyal said.
On expansion plans, Mr Goyal said the Baddi facility would help the company increase its presence in formulations and the finished dosage forms segment. At an estimated Rs 31 crore, the proposed plant will have an annual capacity of 150 million units of tablets and capsules each, 36 million units of dry powder injections and 15 million units of dry syrup, he said.
About Rs 25 crore will be invested in the R&D centre. It will facilitate contract research work from other companies, said Mr Goyal.
The company shares will be listed on the Bombay Stock Exchange and the National Stock Exchange .
ICICI Securities Ltd is the book running lead manager for the issue.