Nectar Lifesciences expects 50:50 sales, exports ratio by '07

Nectar Lifesciences expects its domestic sales and exports ratio to change from 75:25 of total revenues to a more balanced 50:50 by 2007-end once it is through with its scheduled Rs 90 crore expansion plan that will be funded through its forthcoming IPO.

"Our exports have been limited by capacities. We will be increasing our exports to South America, Middle East and southeast Asia," said Vivek Kaushik, president, Nectar Lifesciences.

The current expansion will enable the company to not only increase its presence in the cephalosporin segment but also enter the non-antibiotic segment.

The expansion plan includes a formulations facility at Baddi in Himachal Pradesh, a sterile cephalosporin US FDA approvable plant at Debrabassi near Chandigarh, and a research and development and corporate quality control centre. Once the company has the US FDA approvals, it will be able to export to the regulated markets of US and Europe.

The IPO for 3,870,000 equity shares of Rs 10 each would constitute 26 per cent of the fully diluted post-offer paid-up capital. The company's paid-up share capital would increase from the current Rs 11 crore to Rs 14.78 crore after the equity issue.

The shares are to be listed on the Bombay Stock Exchange and the National Stock Exchange. The equity share of Rs 10 each would be at a price band of between Rs 200 and Rs 240.