Gwalior Chemicals fixes price band for its IPO between Rs 71-85

Mumbai, Sep 5 (UNI) Gwalior Chemical Industries Ltd (GCIL) has fixed the price band for its initial public offering (IPO) between Rs 71 and Rs 85 per share to raise Rs 80 crore through a 100 per cent book building process.

Briefing newspersons here, Compnay Chairman Ashwin Kothari said the proceeds of this issue will be used for setting up new plant at Nagda in Madhya Pradesh and Ankleshwar in Gujarat for producing second stage downstream products including benzyl esters and acid chloride, besides a new plant for viscose dye pigments.

Replying to a question, he said the expansion of capacity at Nagda plant is expected to cater to growing demand from export markets and the domestic market.

''At present, the Company has facilities to manufacture the first stage downstream products and we intend to further expand into the second stage of value added downstream products like esters which are used in the flavor and fragrance industry,'' Mr Kothari added.

The range of chlorinated compounds produced by GCIL includes chlorotoluene range and sulphur chlorides range. In the chlorotoluene range the three primary products are benzyl chloride, benzal chloride and benzo trichloride. Moreover, the Company also manufactured black viscose dye.

He also said that demand for speciality chemicals has been on the rise due to an increasing trend towards outsourcing as clients seek high quality molecules at a competitive cost and demand timely delivery.

Of the total IPO, upto 50 per cent will be allotted on proportionate basis to Qualified Institutional Buyers (QIBs), of which 5 per cent is reserved for allocation to mutual funds. Another 15 per cent would be available for allocation on a proportionate basis to non-institutional bidders and the balance 35 per cent will be reserved for allotment on a proportionate basis for retail individual bidders. The issue is scheduled to open on September 11 and closes on Seoptember 14.

JM Morgan Stanley Private Limited is the sole Book Running Lead Manager to the Issue.

UNI SN MAZ SKB1535