Astec LifeSciences Limited plans IPO, files DRHP with SEBI

Mumbai, Aug 18 (UNI) Astec LifeSciences Limited, engaged in the manufacture and sale of active ingredients, intermediates and formulations for agrochemicals and pharmaceutical segment has filed the Draft Red Herring Prospectus (DRHP) with the SEBI to enter the market with an Intial Public Offier to fund its expansion projects.

The Company, which is expanding its existing manufacturing facilities at Mahad, Maharashtra and also the existing Research and Development facility at Dombivli, Maharashtra, proposes to enter the capital market with a public issue of 75,00,000 equity shares of Rs 10 each through 100 per cent book building process and thus has filed DRHP with SEBI. Almondz Global Securities Limited is the Book Running Lead Manager for the issue the Company said in a release here today.

The Company started manufacturing operations with an installed capacity of 120 MT in 1994 and at present has the capacity of 2500 MT per annum. It proposes to expand it to 3650 MT with an investment of Rs 31.24 crore. It also proposes to expand Research and Development facility with an investment of Rs 2.46 crore.

Under the Agrochemical segment, Astec LifeSciences Limited manufactures active ingredients, intermediates and formulations and under Pharmaceutical segment it produces intermediates for Active Pharma Ingredients (API) manufacturers.

Some of the domestic clients of the Company are Indofil Chemicals, Krishi Rasayan, Atul Limited a Syngenta, Biostadt India Limited and United Phosphorous Limited. Among the major international clients are An Nong Company Ltd, Nufarm UK Ltd, Handelsgesellschaft Detlef Von Appen and Irvita Plant Protection N.V.

The Company's total income for FY 2008 was Rs 61.18 crore and net profit was Rs 8.07 crore as against total income of Rs 33.56 crore and net profit of Rs 3.70 crore in FY 2007.

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