Visakhapatnam -based Alkali Metals Ltd (AML) has filed its DRHP with SEBI on 4th June, 2008 to enter the capital market with a public issue of 25.50 lakh equity shares of Rs 10 each at a price to be decided at a later stage through the book building process.
The company proposes to list its shares on BSE & NSE. The BRLM to the issue is Saffron Capital Advisors.
The object of the issue is for setting up of Acting Pharmaceutical Ingredients (API) plant at Jawaharlal Nehru Pharma city at Visakhapatnam with an installed capacity of 672 mtpa.
The company intends to deploy Rs 42.73 crores from the issue proceeds to part finance the setting up of the above mentioned API plant.
AML, engaged in manufacturing variety of products, ranging from alkali metal derivatives, amino pyridines, tetrazoles, cyclic compounds and fine chemical, was established in 1968 as a joint venture with APIDC. The company commenced production of sodium metal, with an installed capacity of 125 mt. The company manufactures the above products on bulk, regular and on contract manufacturing basis.
Currently AML has two manufacturing facilities, Unit I and II. Both the units are ISO
Certified, having installed capacity of 2,200 MTPA each. While Unit I is engaged in the manufacture of sodium metals, organo alkali metallics, tetrazoles, amino pyridines and catering to the domestic market, Unit II, a 100% EoU, is engaged in the manufacture of pyridine derivatives, cyclic compounds and fine chemicals.
These products find wide applications in various industries like pharma, agro-based products, pesticides, explosives, bio technology products and electroplating chemicals.
The company's major clients include Dr. Reddy's Laboratories, Aurobindo Pharma, Ranbaxy, Clariant, Rallis India, Vivimed Labs, Aarti Drugs etc.
The company is presently in the process of setting up the API plant at Visakhapatnam, for which the company has entered into a sale deed agreement for the allotment of 16.42 crores of land with Ramky Pharma City Ltd and APIIC.
The company has been conferred the status of Export House by the Joint Director General of Foreign Trade.
For the year ended March 31,2008, the company posted a total income of Rs 65.33 crores and net profit of Rs 7.93 crores as against total income of Rs 64 crores and net profit of Rs 7.60 crores for FY07.