Celestial Labs Ltd, a Hyderabad-based ISO 9001-2000 certified company, is entering the capital market with a public issue of Rs 30 crore to part finance its new projects. The company is setting up project for manufacturing industrial biotech (enzymes) like alpha amylase and alkaline protease. The company is also expanding its bioinformatics and drug molecule development and related services. Celestial is also setting up its marketing and liaison office at USA.

The company is issuing 50 lakh equity shares of Rs 10 each with a premium of Rs 50 per share aggregating to Rs 30 crore. The issue is slated to open in March 2007.

The total cost of the project is estimated at Rs 40 crore and will be financed through IPO of Rs 30 crore and term loans. Out of this, the company is planning to spend Rs 14.67 crore on enzymes project. The company has already signed an agreement for technology transfer of enzymes with CSIR Institute, IMTECH, Chandigarh and setting up a manufacturing facility at Genome Valley of Andhra Pradesh.

Talking about the company's future plans, Dr A N Singh informed Pharmabiz that, "Celestial has made a modest revenue of Rs 10.20 crore with a profit margin of Rs 3.28 crore from services offerings and is confident to make substantial jump in the coming years from enzymes and licensing drug molecules apart from increasing revenues in services. The turnover is likely to go up to Rs 15 crore in the current year.

Celestial is an 8-year old company, which has been providing customised enterprise solutions and bio-informatics services to health and life science sector. Celestial has collaboration with prestigious CSIR Institute like IMTECH (Institute of Microbial Technology), Chandigarh and CCMB (Centre for Cellular and Microbial Biology), Hyderabad, where all their developmental activities are validated. Drug molecules development works for vitiligo and anti cancer are under progress at CCMB. The company has so far invested Rs 5 crore in its Research and Development activity.