Granules India Ltd, the city-based bulk drug manufacturer with specialisation on granulation technology, has proposed to issue 24.54 lakh equity shares on preferential basis to the promoter C Krishna Prasad and others at a price of Rs 14.26 a share.
The offer price is 10 per cent higher than the minimum issue price of Rs 12.96 a share, computed as per the Securities and Exchange Board of India (Sebi) guidelines. The company has called for an extraordinary general meeting (EGM) on March 16 to seek the approval of the shareholders for the preferential issue.
The proposed issue will fetch the company an amount of Rs 3.5 crore. The company plans to invest the issue proceeds to part-fund the new granulation facility coming up at Gagillapur, on the outskirts of the city.
The 7,500 metric tonne per annum capacity unit with an investment of Rs 17 crore is expected to be commissioned by December 2002.
The company's existing granulation plant has an installed capacity of 900 metric tonne per annum. It produces paracetamol and guiafenisin and some other drugs in the form of granules.
Granules India has recorded a net profit of Rs 2.69 crore on a turnover of Rs 46.53 crore for the nine-month period ended December 2001.
