Fineotex Chemical IPO on Feb 23, price-band fixed at Rs 60-72

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Mumbai, Feb 15 (PTI) Speciality chemicals andenzymes-manufacturer, Fineotex Chemical, plans to set-up a13,125 metric tonnes per annum plant at Khopoli in Maharashtrawhich is expected to become operational by April 2012, a topcompany official said.

The company presently has a 5,000 metric tonnes plantat Mahape in Navi Mumbai and plans to finance its expansionprogramme through an IPO slated to hit the market on February23.

"We have fixed the price-band of our IPO at betweenRs 60-72. At the lower-end of the price-band, we are eyeingRs 25.27-crore and at the upper-end, 30.32-crore," thecompany''s Director, Sanjay Tibrewala, told PTI here today.

In Mahape, land of the size the company requires isnot available and besides, land prices are also high andhence, the company has zeroed-in on Khopoli for its plant,Tibrewala said.

The IPO proceeds will be used to fund the company''sexpansion, acquire plant and machinery and for generalcorporate purposes, he said, adding the investment in theplant will be around Rs 17-crore.

The company also plans to set-up a sales office inMumbai.

"We are into value-addition and have a widediversified portfolio of products. We make tailor-madeproducts for our customers," he said.

On exports, Tibrewala said that the company''s productshave a good export potential. "Exports presently contributearound 25 per cent to our total revenues," he said.

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