IOL Chemicals to undertake Rs 180 crore expansion

New Delhi, Sept 30 (UNI) IOL Chemicals and Pharmaceuticals Ltd will undertake a Rs 180 crore capacity expansion, which will be funded through internal accruals, term loans and issue of convertibles.

The company's board has approved issue of up to 1.33 million shares to Indiastar (Mauritius) Ltd at Rs 75 each. It will also issue 1.1 million warrants and 1.4 million fully convertible debentures to Indiastar, both at Rs 75 each, IOL said in a statement.

The company will also issue 1.2 million warrants to promoters at the same price.

The company is also planning further expansion of Ibuprofen due to the increasing export demand. Presently, it exports its finished products mainly in South Asian countries and is taking effective steps to get USFDA approvals.

The company's manufacturing unit is located at Baddi, Jammu and Kashmir and Uttarkhand, which are tax exempted zones and various pharmaceuticals companies are coming there for getting the benefits of tax exemption.

UNI