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Alpa Lab to raise 64 crore: IPO priced at Rs 62-68

By Staff
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Google Oneindia News

Mumbai, July 9 (UNI) Indore-based Alpa Laboratories Limited (ALL), a multi-product pharmaceutical formulations company, has announced it will be raising Rs 64 crore, to part finance its expansion plans, through an initial public offering of 95 lakh shares at a price band of Rs 62-68.

Addressing a press conference here today, ALL's Chief Executice Officer (CEO) Jayesh Patel said the ALL, 40-year old family-owned company, is setting up a new plant at Pigdamber (Indore) in Madhya Pradesh at a cost of Rs 70.88 crore. The company has proposed an IPO of 95 lakh shares of which 2.50,000 shares have been reserved for the employees.

As per the proposed plan, the ALL has decided to expand installed capacity, widen product range and enhance its exisiting distribution network.

''We are utilising our 90 per cent of capacities, which is much higher than 75 per cent capicity utilisation by the pharma companies, and thus expanding capacity very much needed by us,'' Mr Patel said.

According to him, post expansion, collectively, the capacity in all the segments of the company will reach 63.57 lakh units per day from the present capacity of 25.32 lakh units per day.

The proposed expansion will be finansed through a term loan of Rs 20 crore from the State Bank of India (SBI), Promoters contribution of Rs Three crore, besides, the Rs 64 crore expected proceeds from the proposed IPO, Mr Patel said.

Navjeet Sobti, Executive Vice President of the Allianz Securities Limited, the Book Running Lead Mangers (BRLM), said though it is the fact that the Pharma shares have been undervalued in the present stock market boom, the present higher indicator shows a good space to the pharma scrips to find their value.

The Issue will open on July 12 and close on July 17. The shares of the ALL will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

UNI

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