Gufic Biosciences in talks to sell 10 per cent stake

Mumbai-based biotech company Gufic Biosciences has kicked off discussions with potential investors, offering them close to 10 per cent equity in the company.

The funds roped in through the equity dilution would be invested in setting up a new manufacturing unit besides investment in research and development (R&D) projects.

Jayesh P Choksi, chairman and managing director of Gufic Biosciences, said: "It could either be a private placement or a strategic stake sale. We are also open to equity funds investing in the company. We are initially looking at diluting equity up to 7 per cent, but we may consider a higher quantum if we get a good valuation. Our investment plan for the next year is close to Rs 30 crore." Currently, the promoter holding in the company is around 81 per cent.

The company has charted out a portfolio expansion programme. On the biotechnology front, it has launched five products in the human injectibles category and would be launching products in the enzymes and recombinant categories in June 2005 and 2006, respectively.

On the pharmaceutical side, the company plans to launch herbal products in the gynecology, orthopedic and pain-relief segments.

"We expect our turnover to double to around Rs 100 crore in the next two years," Choksi added.