The Ahmedabad-based Kiri Dyes and Chemicals (KDCL), manufacturer and exporters of dyes and dyes intermediates, is open for subscription with its initial public offering (IPO) of 37.5 lakh equity shares of face value of Rs 10 each, to raise funds for executing its backward integration project for manufacturing three key raw materials for dye intermediates. The price-band has been fixed at Rs 125 to Rs 150 per equity share.
The company has made pre-IPO placement of 12.50 lakh equity shares to an investor, the amount aggregating to Rs 14.44 crore, which the company proposes to utilise towards the objects of the issue.
The backward integration project is proposed to be located in Vadodara district and will have combined production capacity of 1.80 lakh mtpa. The company is setting up the plant with latest double-absorption technology and a power plant of 2.9 MW capacity, which can run from the steam generated by the sulphuric acid plant. With the implementation of backward integration project for manufacturing of intermediates, the company aims to enhance market share and capitalise on the opportunity for high growth in chemicals and dyes industry with reduction in operating costs, research and development, quality controls, and offer competitive price to domestic and international players.
The shares will be listed on Bombay Stock Exchange and National Stock Exchange of India. The book running lead manager to the issue is Centrum Capital.
Source: Moneycontrol.com
Tuesday, March 25, 2008
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