Agrochemicals manufacturer Chemcel Biotech is entering the capital market to raise funds to expand its capacity and diversify into bio-diesel manufacturing.
"Our experience in agrochemicals business, supported by locational advantage of being present in coastal Andhra Pradesh gives us an impetus to consider bio-diesel for business expansion," Chemcel Biotech MD Vijaya Kumar told reporters.
The issue opens on September 9 and closes on September 12. The issue size is of 1.54 lakh equity shares of face value of Rs 10 each for a premium of Rs 6 per share.
The net issue to the public would be 1.28 crore shares, constituting 49.39 per cent of the post-issue paid up capital of the company.
Chemcel Biotech plans to raise Rs 24.64 crore. The company would invest 50 per cent of the raised money in expanding its agrochemical division and the rest in setting up a bio-diesel manufacturing plant in Andhra Pradesh.
Chemcel's agrochemicals products are in three forms: liquids, granules and dusts. It has the Central Insecticide Board registration for 34 products to manufacture pesticides for crops such as paddy, cotton, sugarcane, turmeric, chillies and pulses.
The company focuses in coastal Andhra Pradesh where paddy is grown extensively for its agrochemical business.
