SMS Pharmaceuticals pegs IPO price band between Rs 360

Mumbai, Jan 29 (UNI) SMS Pharmaceuticals, manufacturer of Active Pharma Ingredients (API) and pharmaceutical intermediates, has fixed the price band of its initial public offering (IPO) at Rs 360 to Rs 380 per equity share of Rs 10 each.

The IPO being made through a 100 per cent book building process will open on February five, 2007, and close on February eight, 2007, which will constitute 25.77 per cent of the fully diluted post-issue paid up capital, Ramesh Babu Potluri, Chairman&Managing Director of the Company said at a media briefing here today. The equity shares are to be listed on both Bombay Stock Exchange and National Stock Exchange.

Elaborating, he said the Company proposes to utilize part of the net proceeds of the issue in setting up of facilities for manufacturing API as per US-FDA standards at Vizianagaram district of Andhra Pradesh.

The cost of the project at Rs 113 crore has been appraised by EXIM Bank, which has sanctioned a term loan of Rs 30 crore, Mr Potluri said adding that the company has already raised Rs 14 crore through pre-IPO placement.

He added that SMS Pharmaceuticals is planning to create this facility for manufacturing new products which presently are in Lab scale testing stage in its Research&Development Centre. It has already acquired the land measuring 72.64 acres for the proposed expansion.

UTI Securities is the Book-Running Lead Manager to the issue and Aarthi Consultants is the Registrar.

UNI