Rs 155-175 price band for Dishman IPO

The Ahmedabad-based Dishman Pharmaceuticals and Chemicals Ltd has received the Securities and Exchange Board of India (Sebi) nod for its proposed initial public offering (IPO) for 3,433,400 equity shares of Rs 10 each.

"The issue would be through 100 per cent book-building route and would constitute 25.01 per cent of the fully diluted post-issue paid-up capital of the company. A price band of Rs 155 to Rs 175 per equity share of Rs 10 each has been set for the IPO. The IPO is slated to open in end March this year," said an official of the company.

Dishman is a research-driven company promoted by J R Vyas. The company manufacturers quats and specialty chemicals, a range of sophisticated bulk actives and intermediates. It has now graduated into contract manufacturing and research.

The company has two GMP manufacturing plants""one located at Naroda in Ahmedabad and at Bavla near the city. The Bavla facility is at present an 100 per cent export-oriented unit, which was set up in 1997.

Both the production units are built as per the guidelines laid by USFDA API and one of the unit is dedicated to Solvy Pharmaceuticals B V of the Netherlands.

Dishman has a long-term supply contract with Solvy for a patented anti-hypertensive drug whose patent expires in 2013, stated the official.

The process to manufacture three starting materials required to produce the drug is developed by Dishman and its intellectual property rights are with Dishman.

The company is implementing a capital expenditure programme which includes setting up of a GMP API plant, a GMP intermediate plant and a dedicated research and development centre as well as expansion of its existing facilities.

Dishman recorded total sales of Rs 1,144 million and a net profit after tax of Rs 143 million for the year ended March 31, 2003, with exports accounting for over 82 per cent of the total sales.