Pochiraju industries to enter capital market on Jan 15

Hyderabad, Jan 12 (UNI) Pochiraju Industries Limited, producer and exporter of roses, will come out with a public issue on January 15, aggregating Rs 37.57 crore through cent per cent book building process to part finance its expansion plans to produce pharma formulations with a total investment of Rs 47.57 crore.

The company, which has a Floriculture unit in the agri-export zone in Hosur and Tamil Nadu, proposed to outsource a variety of roses and other flowers from different growers in India and from Malaysia, Singapore and Australia for international marketing.

The price band has been fixed at Rs 25 to Rs 30 per equity share of Rs ten each. The issue closes on January 18, Managing Director P Sudhakar told reporters.

The plans, included setting up of a biofermentation and protein purification unit, and a modern bio-parental unit of global standards adhering to latest International Good Manufacturing Practices (GMP), he said and added pharma formulations would be manufactured under loan licensing agreement with Sunrise International Labs Limited, Hyderabad.

As against the total IPO of Rs 37.57 crore, the promoters would contribute Rs three crore, leaving a net issue of Rs 34.57 crore to the public. Upto 50 per cent of the net issue to the public would be allocated to qualified institutional buyers on a proportionate basis, subject to valid bids being received at or above the issue price, he said.

The company's total sales had grown from Rs 2.42 crore in FY 2004 to Rs 3.57 crore in FY 2005 and further to Rs 9.50 crore in FY 2006.

The profit after tax during the same period had gone up from Rs 31.95 lakh to Rs 86.29 lakh and further to Rs 2.57 crore respectively, he said.

UNI