The Hyderabad-based Maanya Biotech Ltd is planning an Rs five crore initial public offer (IPO) to part finance its Rs 23 crore project. All that the company has got is a nameplate and plans to manufacture cephalosporin antibiotic derivatives, anti-cancer and ophthalmic biotech products.

The company proposes to set up a manufacturing facility at Shapoorji Pallonji Biotech Park, which itself is under development. It has taken a laboratory space on lease at the adjacent ICICI Knowledge Park to set up R&D facility and a pilot plant.

Of the proposed Rs five crore, the book-building portion consists of Rs 3.75 crore and the remaining Rs 1.25 is a fixed portion. The APIDC Venture Capital has taken an in-principle decision to invest Rs three crore in the book-building portion of the issue under the category of Qualified Institutional Buyers (QIBs), according to Y Manivardhan Reddy, Managing Director of the company.

“We plan to tap the market in December or January. Though the capital market is depressed, we will like to go ahead with the issue as some NRIs are keen to invest,” he said.

The company is yet to start construction of the main plant building and place orders for the plant and machinery worth over Rs 19 crore. “We are in the process of finalising the orders and will start production at the pilot plant in the next six to seven months. The main plant will be ready by the end of 2003,” Reddy said.

Incorporated in the year 1995 as Maanya Remedies Ltd, the company had originally planned to set up the unit in Medak district. IDBI had appraised the project in 2000 and sanctioned a term loan of Rs 13 crore. Subsequently, the company had changed the location of the plant, revised the scope of the project to include microbial products and altered the means of finance. The company had so far spent Rs 1.43 crore, of which Rs 1.10 crore is on account of preliminary and pre-operative expenses. It is yet to finalise the term loan arrangement with IDBI.