JHS Svendgaard to enter capital mkt on Sep 26

New Delhi, Sep 25: Dental and oral healthcare products-major JHS Svendgaard Laboratories Ltd is entering the capital market with a public issue of 67,00,000 shares of Rs 10 each to aggregate Rs 39 crore for setting up an integrated manufacturing facility at Kala Amb, Himachal Pradesh, and capacity enhancement at its existing facility at NSEZ in Noida.

The shares on offer will include promoters' contribution of 5,00,000 equity shares of Rs 10 each.

The total cost for the new plant and expansion project is estimated at Rs 51.77 crore and remaining funds for investment is being arranged through term loans from banks and internal accruals.

The issue is being made by 100 per cent Book Building process and the price band is Rs 49-58 per equity share. The net issue would constitute 49.60 per cent of the fully diluted post issue paid up capital of the company, said Mr Nikhil Nanda, Managing Director of the company at a press conference here today.

The issue, listed on the NSE and BSE, will open tomorrow and close on October 4, 2006.

Of the net issue of 62,00,000 shares to the public, atleast 31,00,000 equity shares will be issued to the Qualified Institutional Buyers (QIBs), about 9,30,000 equity shares will be allocated to Non Institutional Portion and about 21,70,000 equity shares would be allocated to Retail Individual Investors, Mr Nanda said.

He further informed that ''at Kala Amb, we propose to import Achorfree technology enabled machineries from Boucherie, Belgium for our toothbrush-manufacturing segement. We also have plans to acquire automated machineries to manufacture tootpaste as well as whitening gel, whitening mouth rinse and denture-cleaning effervescent tablet range of products.'' JHS Svendgaard manufactures dental and oral health care products for the retail market and do contract manufacturing for various well-known national and global brands.

Post expansion the annual installed capacities of all products would increase substantially -- toothbrushes from 40 million units to 116 million units, tootpaste from 450 tonnes to 2,700 tonnes, denture cleaning tablets from 5 million units to 180 million units and other oral care products from 60,000 litres to 5,00,000 litres.

The company enjoys significant advantages of its in-house facilities and low turnaround time, quality assurance, design flexibility, integrated operations, economies of scale and professional management.

During the fiscal 2005-06, JHS Svendgaard posted net profit of Rs 4.02 crore on turnover of Rs 36.93 crore.

UNI