Kilitch Drugs (India) Ltd (KDIL), engaged in manufacturing parenteral formulations, both in the powder and the liquid form, is making preferential offer of 61.45 lakh equity shares of Rs 10 each at a premium of Rs 37.50 to its group company NBZ Pharma Company (NBZ). The preferential offer is mainly to part finance its capital expenditure and repay the high cost debt for its new Cephalosporin Plant at Himachal Pradesh. The preferential offer opened on June 14 and will close on August 21, 2007.

NBZ, one of the companies belonging to the promoter group, agreed to subscribe to 60 lakh shares at a price of s 47.50 per share aggregating to Rs 29.19 crore. With this offer, the promoters holding in KDIL will exceed 55 per cent of the total issued paid-up and voting capital. Transwarranty Capital Pvt Ltd is acting as manager to the preferential offer.

KDIL caters to both the Indian as well as the multinational companies. It has two factories one at Pawane in Maharashtra and other at Paontasahib in the state of Himachal Pradesh. The Pawane plant is approved by the WHO and it is also received many other international regulatory agencies such as Drug Control Authority of Sudan, Yemen, Nigeria, Tanzania, and Uganda. The company is also setting up a dedicated unit to manufacture Cephalosporins and general products.

NBZ, belongings to the KDIL, is engaged in the business of a manufacturing as well as export and import of pharmaceutical medicinal and chemical preparations and all types of industrial preparation drugs compounds, patent medicines, pharmaceutical products and fine chemicals. NBZ is confident of ensuring sustained growth in operations. The proposed preferential allotment will strengthen the capital base and net worth of KDIL and enable it to seek higher working capital facilities from Banks.

KDIL had gross sales of Rs 29.07 crore for the year ended March 2006, comprising of an export income of Rs 1.64 crore. It earned a net profit of Rs 0.43 crore. For the nine months ended December 2006, KDIL reported sales of Rs 20.17 crore and it earned a net profit of Rs 0.58 crore. KDIL has fixed assets valued at Rs 28.81 crore as at the end of March 31, 2006.