Celestial Labs to raise Rs 30 cr through public issue

Ahmedabad, Jun 13 (UNI) The Celestial Labs (CLL), a Hyderabad-based ISO 9001-2000 certified company, is entering the capital market to raise Rs 30 crore through a public issue to part finance its new projects.

Addressing a press conference here today, Dr Aditya Singh said ''one of the primary objectives of the public issue is to raise funds for its project for manufacturing industrial biotech (enzymes) like alpha amylase and alkaline protease''.

Dr Singh said ''The CCL is also expanding its bio-informatics and drug molecule development and related services. Celestial is also setting up its marketing and liaison office at USA.'' The issue is offering 50 lakh equity shares of Rs 10 each with a premium of Rs 50 per share aggregating to Rs 30 crore. It is slated to open in June 18 and close on June 22.

He said the CCL fund requirement is estimated at around Rs 40.59 crore which consists of Rs 17.34 crore for enhancing existing infrastructure for bio-informatics, Rs 14.87 crore for setting up of infrastructure for manufacturing industrial enzymes widely used in pharmaceuticals, drug, food processing, textile and industrial detergent, a good market potential in India and export market and the balance of Rs 8.58 crore for other related activities.

The CCL funds requirement will be financed by Rs 30 crore from present public issue, Rs 2 crore by term loans from PNB, Rs 5 crore by term loan from TDB and Rs 3 crore through internal resources, he added.

''CLL has made a modest revenue of Rs 10.20 crore with a profit margin of Rs 3.28 crore from services offerings and is confident to make substantial jump in the coming years from enzymes and licensing drug molecules apart from increasing revenues in services. The turnover is likely to go up to Rs 15 crore in the current year'', Dr Singh said.

The company has so far invested Rs 5 crore in its Research and Development activity, he added.

UNI