Shree Pushkar Chemicals fixes IPO price band at Rs 61-65

Shree Pushkar Chemicals & Fertilisers Ltd (SPCFL) has fixed the price band at Rs 61-65 per equity share for its proposed initial public offer (IPO).
The Mumbai-based company, which manufactures dye intermediates, acids, fertilisers and cattle feed supplements, plans to enter the capital market with an IPO of its equity shares of face value Rs 10 each for cash aggregating up to Rs 70 crore. Of the total shares offered, 2,026,589 shares are on offer for sale (OFS), it said in a statement.
The issue opens on August 25 and closes on August 27 and the price band is fixed at Rs 61 to Rs 65 per equity share.

IFCI Venture Capital Fund, which infused growth capital to the extent of Rs 15 crore between 2009-2011, will bring down its stake from the present 11.30 per cent through OFS.
The funds raised through fresh issue of equity shares are proposed to be utilised to enhance the firm's existing capacities and proposed forward integration plan for manufacturing reactive dyes.
The company is setting up a facility to manufacture reactive dyes with a capacity of 3000 TPA, H-acid with a capacity of 750 TPA and vinyl sulphone ester with a capacity of 1000 TPA.

It is also setting up an additional effluent treatment plant at the existing facility to make the unit a zero discharge unit, SPCFL chairman and managing director Punit Makharia said.

The firm also proposes to manufacture fertiliser-sulphate and potash - with an installed capacity of 10,000 MTPA at Lote Parshuram (Maharashtra), he added.
Dyestuffs are critical inputs to several industries such as textiles, paper & packaging, leather, foodstuffs, polymers, coating and printing ink. Amongst these, textiles, paper and leather industries together account for over 85 per cent of the total demand for dyestuffs.
Outlook for these sectors remain positive, driven by steady domestic demand and strong export potential, Makharia said.