Astec Lifesciences (ALL), engaged in the manufactue and sale of intermediates, active ingredients and formulations has filed its DRHP with Sebi on 13.8.2008 to enter the capital market with an IPO of 75 lakh equity shares of Rs 10 each at a price to be decided at a later stage through the 100% book building process. The issue comprises a reservation of 1 lakh shares to the employees of the company.
The issue shall constitute 44.30% of the fully diluted post issue paid-up capital of the company.
The company proposes to list its shares on BSE and NSE and the BRLM to the issue is Almondz Global Securities.
The object of the issue is for expansion of its existing manufacturing facilities at Mahad and R&D facility expansion in Mumbai; meeting Registration expenses and working capital and contingencies requirements.
The company proposes to utilize the proceeds of issue to part finance the company's expansion plans and for meeting the various requirements as stated above. It will use Rs 33.70 crores for expansion of manufacturing activities and R&D; Rs 3.69 crores towards meeting Registration expenses and Rs 11.84 crores for contingencies and working capital needs.
The company carries out manufacturing activities at two locations consisting of
three units - one unit at Dombivli, and two units at Mahad, (Unit 1
and Unit 2). ALL started its first manufacturing unit in August 1994 by acquiring a sick unit in
Mumbai,having an installed capacity of 120 MT.
With a view to expand the operations, it entered into an agreement with Behram Chemicals
Private Limited in February 2002 for using and operating their manufacturing facilities at Mahad. Behram Chemicals was engaged in manufacture of chemicals and pesticides with installed capacity of 130 MT. During 2003-04 ALL expanded the total installed capacity of its units (Dombivli and Mahad) from 250 MT to 500 MT. In 2005 the company set up a new manufacturing facility as an EOU ( as Unit 2), with an installed capacity of 1,000 MT. With the commissioning of Unit 2 the total installed capacity increased to 1,500 MT. The company further expanded total capacities to 2,000 MT during 2006-07 and to 2,500 MT during 2007-08. It now proposes to expand it to 3,500 MT.
Astec Lifesciences is primarily involved in the production of active ingredients and intermediates for agrochemicals and pharmaceutical segment. Hexaconazole, Tebuconazole, Metalaxyl and
Propiconazole are some of its key products in agrochemical segment which are generally used in
crop protection and Dicap, a key Pharmaceutical intermediate, is used in manufacture of antifungal agents.
Some of the domestic clients of the company are Indofil Chemicals, Atul Limited and United Phosphorous. Among the major international clients are An Nong Company Ltd, Nufarm UK, Handelsgesellschaft Detlef Von Appen and Irvita Plant Protection N.V.
The company posted total income of Rs 61.19 crores for the year ended 31.3 08 as against Rs 33.57 crores for the previous year. The net profit for the year was Rs 8 crores as against Rs 3.70 crores for the year ended 31.3.07.