IIL to enter capital market on May 7

Ahmedabad, May 3 (UNI) Insecticides India Limited (IIL) will enter the capital market on May 7 with an initial public offering of 32.10 lakh equity shares of Rs 10 each for cash at a premium to be decided through the book building process to fund its capacity expansion and Research and Development (R&D) project.

The Company has fixed the issue price band between Rs 97 to Rs 115 per equity share each of Rs 10 and the issue is scheduled to open for subscription on May 7 will close on May 11.

Rajesh Agrawal, Managing Director of ILL, said here today that the issue comprises reservation of 32,100 equity shares for permanent employees and the ''net issue to public'' of 31,77,900 equity shares. Thus the net issue to public would constitute 25.06 per cent of the fully diluted post-issue paid up capital of the Company and rest will be held by promoters.

He said the funds raised through the issue would be utilised to expand plant at Jammu and Kashmir and set up technical research and development facility at Bhiwadi in Rajasthan.

Of the net offer to public, upto 50 per cent is reserved for allotment to qualified institutional bidders, a further 15 per cent reserved for allotment on a proportionate basis to non-institutional investors and at least 35 per cent is to be made available for allotment to retail investors on a proportionate basis.

The Company is in the business of manufacturing and distribution of plant protection chemicals and household pesticides and has a total manufacturing capacity of 60 lakh litres of emulsifible concentrate (EC), 2900 MT of wettable dispersable power (WDP) and 10500 MT of granules per annum.

The product range includes more than 80 types of insecticides, fungicides, weedicides, herbicides and plant growth regulator for all types of crops and also household pesticides, and caters mostly to domestic market.

The Company reported an income of Rs 168 crore for the nine-month period ended December 31, 2006 and profit for the period amounted to Rs 15.47 crore.

UNI