Ahmedabad-based Dishman Pharmaceuticals has appointed Enam Consultants and IL&FS as the lead managers for its IPO, which is likely to take place by the first week of March after the SEBI approval. The company has completed the filing of draft red herring prospectus with SEBI for its proposed IPO of 3,433,500 equity shares of Rs.10 each. The issue would constitute 25 per cent of the fully diluted post paid up capital of the company. The IPO would be through 100 per cent book building route. The company is hoping to rein in about Rs.60 crore from the IPO. It will be soon commencing road shows in Ahmedabad, Mumbai, Delhi and Chennai, according to JR Vyas, managing director, Dishman Pharma.

The company would be utilising proceeds from the IPO for the construction of a 16,000 sq m bulk API facility and a 5,000 sq m R&D centre around Ahmedabad. Both the facilities are likely to be commissioned in early 2005. Dishman hopes to increase the capacity. Contract manufacturing and research are the two thrust areas Dishman is focusing on.

The company is currently engaged in the manufacture of Iprosartan Mesylate (IM) for Solvay Pharmaceuticals BV Netherlands. IM is anti-hypertensive used to control the systolic blood pressure. "The market for IM is going to touch $350 million in the next 2-3 years. Currently we are sourcing 32 tonnes of IM to Solvay. In the next two years, we have plans to expand our capacity to 100 tonnes, which will be done in our new facility. Dishman and another European company are the only manufacturers of IM for Solvay. Therefore the market is enormous," said Vyas. Dishman is also conducting contract research for MNCs in areas like anti-hypertensives, CVS, CNS and digestives. Dishman has a long term supply contract for patented anti-hypertensive drug whose patent expires in 2013.

According to Vyas, Dishman achieved a turnover of Rs.150 crore for the year ended March 2003, with a PAT of Rs.23 crore. It is expecting a turnover of Rs.250 crore and a PAT of Rs.48 crore, next year, he said.

Dishman has two GMP manufacturing plants located at Naroda and Bavla near Ahmedabad. The Bavla facility (now an 100 per cent export oriented unit) set up in 1997 has eight production units.