Kiri Dyes maiden IPO to hit market on March 25

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Ahmedabad, Mar 11 (UNI) The Ahmedabad-based Kiri Dyes and Chemicals Limited (KDCL), manufacturers and exporters of Dyes and Dyes Intermediates, will hit capital market with its maiden Initial Public Offer (IPO) of 37,50,000 equity shares of the face value of Rs 10 each on March 25.

The company has fixed the price band for the issue at Rs 125 to Rs 150 a share.

KDCL Managing Director Manish Kiri said that the proceeds of the funds will be utilised for executing its backward integration project for manufacturing Sulphuric Acid, Oleum and Chlorosulphonic acid -- the three key raw materials for dye intermediates.

He said, ''Before placing the IPO to the market, we had already identified the project site at village Dudhwada in Vaodara district and the construction work has already been initiated so as to enable us to start the project this year itself.'' The Company will be setting up this plant with latest double absorption technology. The plant will have combined production capacity of 180,000 MTPA and a power plant of the capacity of 2.9 MW which can run from the steam generated by the sulphuric acid, he added.

Mr Kiri said that global chemical market is around USD 2.4 trillion while Indian chemical industry's contribution is approximately USD 35 billion.

The Company has also entered into a joint venture with China-based Zhejlang Longsheng Group Company Limited in November last year for establishing manufacturing facility in India for reactive dyes on an 60:40 ratio.

KDCL is targeting to increase its turnover from Rs 133 crore in 2006-07, with a net profit of Rs 8.63 crore, to about Rs 250 crore this fiscal, he said.

UNI PVN RN SKB1601

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