Indoco Remedies, one of the leading pharmaceutical company with presence in pain management, Gynaecology, Paediatric, Cardiology and Diabetology segments, has filed with SEBI, the draft red herring prospectus for its maiden public issue. The company is making an initial public offer of 30 lakh equity shares of Rs10 each. The issue is being made through the 100 per cent book building process.
The proceeds of the issue will be utilized to part fund the company's expansion programme, to set up a formulation plant at Baddi, Himachal Pradesh, an API manufacturing plant, R & D centre, and repayment of loans for brand acquisition and purchase of office. Enam Financial Consultants Private Limited is the book running lead manager; Intime Spectrum Registry Ltd is the registrar to the issue.
The issue would constitute 25.38 per cent of the fully diluted post issue paid-up capital of the company. Promoters and the Promoting Group currently hold 79.75 per cent of the present paid up equity capital of Rs 8.82 crore, which will come down to 59.51 per cent after the issue.
Commenting on the occasion, Suresh Kare, chairman and managing director, Indoco Remedies said: "Our growth in the domestic market has been impressive. The recent take over (Karvol brand) would further growth. We have targeted Contract Manufacturing, Contract Dossier Development and Contract R&D as growth engines. This coupled with our (marketing) partnership with global pharma companies in India, will help sustain the growth momentum."
Indoco is ranked 34th as per ACNielsen ORG-MARG Retail Audit at the all India level and rank 23rd in terms of prescription generation by ACNielsen ORG-MARG Prescription Audit of June 2004. For financial year ended June 2004, the company reported net sales of Rs 156.69 crore, a growth of 22.5 per cent and a net profit of Rs 21.26 crore, a 44.9 per cent growth. During FY 2004 Indoco's exports have grown from Rs 6.38 crore to Rs 13.40 crore, a 105 per cent rise. Profit before tax has risen to Rs 29.08 crore from Rs 18.05 crore, a 65.1 per cent increase.
Recently, Indoco Remedies acquired Karvol in the decongestive inhalant (anti-cold) segment from Solvay Pharma India Limited for a total consideration of Rs 9.37 crore. Consequent to the approval by the UK-MHRA in January 2003 for its solid dosage facility at Verna Goa, Indoco has started international business of various tablet products to UK.
Currently, Indoco has four manufacturing facilities out of which two are located in Mumbai and two in Goa and an R&D Centre in Mumbai. Of these two facilities in Goa - one is for tablets, liquids and ointments and the second facility is exclusively for sterile products.