Mumbai, Mar 13: Ahemdabad-based Kiri Dyes and Chemicals (KDCL), manufacturers and exporters of Dyes and Dyes Intermediates, today said it will rise Rs 56 crore through initial public offer to fund its expansion plan. The issue of 37,50,000 equity share at the face value of Rs 10, with a fixed price band between Rs 125 to Rs 150 per equity share, will open for subscription on March 25 and will close on April 2, 2008, KDCL said here today.
KDCL Managing Director Manish Kiri said that the proceeds will be utilised for funding the capital expanditure (capex) for setting a new sulphuric acid plant, expansion and integration of its existing dyes and intermediates unit at Vadodara for manufacturing Sulphuric Acid and its sub-products.
He said that the company is planning to enhance its production as the the demand had increased tremendously in the domestic as well as international market.
The company, which has a export-import proposition of 60:40, hopes a double-fold increase in its export in the South and Southeast Asian countries. It had 40 per cent market share of dyes and intermediates in countries like Bangladesh, Egypt, Korea and Pakistan, Mr Kiri said adding '' KDCL's export in other South Asian countries like Thiland might have a three fold increase in the near future as the trade between India and Thailand will be duty free.'' Regarding the impact of rupee appreciation against dollar and soaring crude oil prices, Mr Kiri said that as the company has a balanced proportion of export and import, the impact was almost negligible and the possible losses due to soaring crude prices are being compensated by the increased amount of organic end products as well as the rise in the price of the product in the international market.
The Company has also entered into a joint venture with China-based Zhejlang Longsheng Group Company for establishing manufacturing facility with an inital investment of Rs 40 crore (USD 10 mn) in 60:40 ratio. The chinese company has also made an pre-IPO investment of 7.5 per cent of the offer, at a price of Rs 120 per share, Mr Kiri said.
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 added.