IOL Chemicals and Pharmaceuticals (IOLCP) today said that it plans to raise $5 million for setting up a new manufacturing plant through the issuance of foreign currency convertible bonds (FCCBs), to be listed on the Luxembourg Stock Exchange (LSE).
IOLC said in a statement that it plans to raise $5 million by issuing zero-coupon unsecured FCCBs with the option of issuing an additional $10 million of such bonds, which are to be listed on the LSE.
"The net proceeds from the issue are intended to be used by the IOLCP for investment in the proposed proton pump inhibitor (PPI) plant to produce anti-ulcer drugs," the statement said.
Punjab-based IOLCP had announced plans to set up a new PPI production unit with a capacity of 150 tonnes per annum. The company expects additional earnings to the tune of Rs 60 crore through this plant, the statement added.
PPIs such as Omeprazole, Pantoprazole, Rabeprazole, Lansoprazole and Esomeprazole help block acid secretion from gastric parietal cells, thus providing relief from stomach ulcers.
