Galaxy Surfactants' Rs 193-cr IPO opens on May 13

Our Bureau Mumbai | Updated on May 10, 2011 Published on May 10, 2011

Mr U. Shekhar (right), Managing Director, Galaxy Surfactants Ltd, along with Mr G. Ramakrishnan, Director, at a press conference to announce the company’s IPO in Mumbai on Tuesday. — Paul Noronha   -  Paul Noronha

Galaxy Surfactants Ltd has come out with its initial public offering for 59.3 lakh shares, constituting 25.07 per cent of fully diluted post issue paid-up capital. The company is in the business of manufacturing and marketing surfactants (surface active agent) and speciality chemicals for the home and personal care industry in India and abroad.

The issue price has been fixed between Rs 325 and Rs 340 a share. This translates into an issue size of Rs 192.72 crore at the lower end of the price band, and Rs 201.62 crore at the upper end.

The company has plans to set up a step down subsidiary Galaxy Chemicals Egypt SAE with a capacity of 90,000 mtpa through Rs 212.3-crore investment in its subsidiary Galaxy Holding Mauritius Ltd. This investment would enjoy a lifelong tax holiday including dividend tax.

In addition, a new manufacturing facility at Jhagadia near Ankleshwar in Gujarat with a capacity of 77,000 mtpa is also being set up at a cost of Rs 70.1 crore. Other plans include capacity additions in their existing plants at Tarapur and Taloja at a cost of Rs 47 crore and Rs 13.5 crore respectively.

This capex would be funded through a mix of debt and equity: Rs 57.6 crore from IFC, external commercial borrowing of Rs33.6 crore through Standard Chartered Bank, term loans from domestic banks worth Rs 60 crore, and the remaining from IPO proceeds.

Motilal Oswal Investment Advisors and Centrum Capital are the book runners and Link Intime, the registrar to the issue. The issue opens for subscription on May 13 and closes on May 18 for qualified institutional buyers (QIB portion), and on May 19 for all other investors.

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Published on May 10, 2011
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