Ahmedabad based Intas Pharmaceuticals that is eying to raise close to Rs 425 crore from its upcoming public offer, plans to utilise the funds to meet expansion needs for both its manufacturing and R&D facilities as well as meeting capital requirement for product registration in overseas markets.
Intas has drawn up plans to invest Rs 108.5 crore from the proceeds of the initial public offering (IPO) to meet new product registrations, and around Rs 218 crore has been slotted for capital expenses which includes expansion and modernisation of some of its manufacturing facilities, setting up new office premises in Ahmedabad and Mumbai as well as expansion of R&D facilities.
As a part of its longterm strategy, Intas will spend nearly Rs 64 crore to expand its research and development capabilities.
The company has also earmarked Rs 45.7 crore for expansion of its Matoda facility and Rs 5.2 crore for Valia facility where it manufactures active pharmaceutical ingredients (API).
At Matoda, Intas will set up a separate block for manufacturing veterinary medicines, acquire an automatic bottle packaging plant besides general expansion of the facility.
As for new product registration, Intas has a pipeline of 71 products for the European markets. It has spent around Rs 32 crore in 2009-10 for product registration in Europe.
Intas Pharma is diluting 10 per cent stakeholding for the IPO, while ChrysCapital, which has an approximately 10 per cent holding in the company, is diluting close to five per cent through the offer.
The public shareholding after the IPO would be 15 per cent. Intas Pharmaceuticals is likely to end the year with a turnover of over Rs 1800 crore.
Post issue, the promoters will have an 80 per cent shareholding in the company, and ChrysCapital Investment Advisors a PE fund will retain five per cent shareholding.