Maanya Biotech plans IPO by May

City-based Maanya Biotech Limited, an 100 per cent export-oriented unit, is coming out with a Rs 5 crore public issue in the last week of May. The funds will be tapped through book-building and fixed portion modes.

The company will issue 50 lakh equity shares for Rs 10 each at par, aggregating Rs 5 crore. There will be Rs 1 crore equity participation from qualified institutional bodies (QIBs). The shares will be listed on Hyderabad and Delhi stock exchanges.

The proceeds of the issue will be utilised to part-finance the manufacture of low volume and high value biotech cephalosporin antibiotic derivatives, anti cancer and opthalmic biotech products. The product range includes three microbial products "� Hyaluronic acid, Daunomycin and Bleomycin.

According to the draft prospectus, the total cost of the project is appraised by IDBI at Rs 23 crore. The total project cost consists of Rs 5 crore contribution by the promoters and their associates, Rs 13 crore term loan from IDBI and the public issue for Rs 5 crore.

The company seeks to spend Rs 2.98 crore on civil works and building and plant and machinery. The R&D equipment will cost Rs 4.72 crore, miscellaneous fixed assets Rs 5.07 crore, preliminary and pre-operative expenses at Rs 1.66 crore, and Rs 20 lakh is to be incurred on land and site development.

Manufacturing and processing facilities will come up on a two-acre plot at Shapoorji Pallonji Biotech Park at Turkapally in Shamirpet mandal. The company has also been allotted one module on lease at ICICI Knowledge Park for carrying out research and development.

Maanya Biotech Limited was originally incorporated as Maanya Remedies Limited in July 1995. The name was subsequently changed to Maanya Biotech Limited in October 2000. It is promoted by Y Manivardhan Reddy and Y Sonia Reddy.

The company was set up to manufacture high value low volume third generation injectable antibiotics.

However, the products are at present imported by the company. The company is proposing to broadbase its product range to manufacture Hyaluronic acid, Daunomycin and Bleomycin. It has technical collaboration and buyback agreement with Finchimica of Italy and a German company.

The company intends to carry on the business of manufacturing, buying, selling and dealing in pharmaceutical drugs, chemicals of all kinds including antibiotics, etc.

Mumbai-based Aryaman Financial Services is the book running lead manager to the issue and city-based Aarthi Consultants Private Limited is the registrar of the issue.