The Hyderabad based API manufacturer SMS Pharmaceuticals Ltd. is planning to go public in its bid to set up a US FDA complaint manufacturing facility at Vizianagaram district in Andhra Pradesh.

The Rs 113 crore plant, to come up at Kandivalsa village, will be utilized to produce multiple products for the export markets. The Exim Bank has sanctioned a term loan of Rs 30 crore and the company has raised Rs 14 crore through pre-IPO placement. SMS plans to utilize this plant to manufacture new products, which presently are in lab scale testing stage, and the company has already acquired the land measuring 72.64 acres for the proposed expansion, said Ramesh Babu Potluri, chairman and managing director of SMS Pharmaceuticals.

The company intends to raise about Rs 98 crore from the public issue and the promoters intends to keep 54 per cent of the equity shares of 2,577,000 of Rs.10 each. The company proposes to enter the capital market on 5th February 2007 and the issue closes on 8th February 2007.

SMS, one of the largest volume manufacturers of Ranitidine in the world and a contract manufacturer, also manufacturers bulk drugs like Sumatriptan Succinate, Sildenafil Citrate, Omeprazol, Ramipril, Almotriptan maleate, Gemcitibine HCL, Imatinib Mesilate and their intermediates. It has also started producing ACE inhibitors like Perindopril Erubamine and Imidapril and anti-cancer drug Capecitabine and Bicalutamide.

TVVSN Murthy, vice chairman and managing director said the company had a turnover of Rs 133 crore in FY 2006 and is operating through three manufacturing units, one pilot plant and one basic research facility in and around Hyderabad. The company is focusing mainly on products and their intermediates that are soon going off-patent.