The Mumbai based Sharon Bio-Medicine Ltd has successfully raised an amount of US$ 1.65 crore, through zero coupon unsecured foreign currency convertible bonds (FCCB). The Bonds have a maturity period of 5 years and 7 days and are convertible at a price of Rs 315. The funds raised through FCCBs will be used for part financing its new manufacturing plant at Taloja, New Mumbai. The commercial production activity will commission by the end of October 2008.
The company has engaged in the business of manufacturing and marketing of active pharmaceutical ingredients (APIs) and API intermediates for the cardiovascular, anti-fungal, anti-diabetic and anti-hypertension therapeutic etc. segments. Sharon is also involved in the contract research and manufacturing (CRAMS) activities. The company has fully integrated manufacturing facilities for over 20 APIs and 35 chemical intermediaries and a wide spectrum of finished formulations. Its Dehradoon, Uttarakhand formulation plant has made up with US FDA standards.
Speaking to Pharmabiz, Savita Gowda, managing director of Sharon Bio-Medicine Ltd. said, "This issuance affirms the confidence of global investors in the strength of our Integrated based business model. They have appreciated the intrinsic cost advantages and superlative growth trajectory of our company. We will be utilizing raised fund for setting up new plant for anti cancer and active pharmaceutical ingredients. And we are constructing our new unit as per the US FDA standards."
Sanjay Guglani, managing director of Silverdale Services Ltd, lead manger for the FCCB issue, said, "We are pleased with the support and confidence reposed in Sharon's business strategy and vision by some of the largest and most astute investors in the world. Despite the high market volatility and recent disorder in global credit markets, the investors' response was overwhelming. We at Silverdale are delighted to be associated with the issuance as the sole Lead manager."
Sharon Bio-Medicine exports its products to over 30 countries. It manufacturers APIs for the cardiovascular segment has a market share of 70 percent. It enjoys a dominant market share of over 50 per cent in 7 of its products. With the manpower strength of 250, it plans to add 50 more peoples by the mid of 2008. The company has posted healthy results with revenues of Rs 172 crore. Its net profit worked out to Rs 16.70 crore and EPS of Rs 16.41.