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20 June, 2005: Nectar Lifesciences Ltd is planning a public float of Rs 90 crore, the funds of which will be used for expansion. This includes setting up production facilities for sterile Cephalosporin at Derabassi near Chandigarh and a formulations facility at Baddi in Himachal Pradesh.
The Initial Public Offer (IPO) consists of 38.70 lakh equity shares of Rs 10 each and the offer would constitute 26 per cent of the fully diluted post-offer paid-up capital of the company. The proceeds from the offer would also be utilised for its R&D processes at the corporate quality control centre of the company to be set up at Derabassi, Nectar Lifesciences Managing Director Sanjeev Goel said.
The company is also planning to enter non-antibiotic segment, even though the focus would be to garner the ability to cater to the regulated markets, he said. The company had recorded an annual turnover of Rs 230 crore in the last financial year, is among the leading players in the Sterile SSP and Sterile Cephalosporins in the domestic market.
Goel said that the company has earmarked an amount of Rs 25 crore for R&D and has retained about 3 per cent of the total revenue for R&D in the normal course.
The formulations unit at Baddi is in line with Company’s forward integration strategy whereby it would supply the final product, as a one step further value added, to its customers.
BY OUR PHARMA CORRESPONDENT
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