Singapore, May 8, 2008: Anu’s Laboratories Limited, engaged in the manufacture of basic, advanced intermediates and fine chemicals and supplying them to various drug manufacturers, proposes to enter the capital markets on May 12, 2008 with a public issue of 38,20,000 Equity shares of Rs 10 each through 100% book building process.

 

The price band has been fixed at Rs 200 to Rs 210 per equity share of Rs 10 each and the issue closes on May 15, 2008. After allowing for reservation of 2,00,000 equity shares for eligible employees, the net issue to the public will be 36,20,000 equity shares, constituting 31.63% of the post issue paid-up capital of the company. The IPO has been graded by ICRA and has assigned “ICRA IPO Grade 2” to the Initial Public Offering.

 

Incorporated in 1996, Anu’s Laboratories is engaged in manufacture of Basic & Advanced Intermediates and fine chemicals and is presently having manufacturing facilities at Mehboobnagar in Andhra Pradesh for key intermediates like 2,4-Dichloro-5-Fluoro Acetophenone (DCFA) (an intermediate for synthesizing quinolone antibiotics like ciprofloxacin); Chlorohexanone (key intermediate in the manufacture of cardio vascular medicine) and Methyl-4 (4-Chloro 1 oxo butane) a, a Di-Methyl Acetate (an intermediate in the manufacture of Fexofenadine an anti allergic drug)..

 

The release noted that it had started export of its products in the year 2002 to Israel followed by exports to other countries like Italy, Japan, France, USA and Singapore. Currently, its exports comprise of 19.97% of its total turnover.

 

In order to diversify and expand its business activities by means of forward integration, Anu’s Laboratories has decided to expand its operations by setting up a new plant for manufacturing of drug intermediates including Active Pharmaceutical Ingredients (APIs) at Vishakhapatnam at an estimated cost of Rs 55.09 crore and setting up a pilot plant for carrying out Contract Research and Manufacturing (CRAM) at Vishakhapatnam at an estimated cost of Rs 8.34 crore. The long term working capital requirements would be Rs 16.67 crore. The Company plans to meet the aforesaid objects by means of issue proceeds and internal accruals.