"We are aiming to raise about Rs 90 crore through the public issue to fund setting up of new facilities, including a formulation plant at Baddi and a sterile cephalosporin facility at Derabassi along with a research and development centre," Vivek Kaushik, president, Nectar Lifesciences said.
The company is issuing 38,70,000 equity shares of Rs 10 each. The issue will open on June 22 and will close on June 28.
"The total amount of share issued will constitute 26 per cent of the fully diluted post-offer paid up capital of the company," he said.
Of the total amount to be raised through the IPO, Rs 30 crore (Rs 300 million) each will be for the formulation plant at Baddi and sterile cephalosporin facility at Derabassi, he said, adding Rs 25 crore (Rs 250 crore) will be spent on research and development.
The new facilities are expected to be completed in by 2007, he said. Kaushik said when completed, the Baddi formulation plant will have a production capacity of 15 crore tablets and a similar amount of capsules per year, along with 3.6 crore dry powder injectables and 1.5 crore (15 million) units of dry syrup.
"The Derabassi plant is being set up keeping in view the USFDA guidelines," he said without divulging the capacity.
