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Rediff News  All News  » Business » Ind-Swift's $15 m GDR by June-end

Ind-Swift's $15 m GDR by June-end

June 10, 2005 11:57 IST

The New Delhi-based pharmaceutical company Ind-Swift Ltd is planning a $15 million global depository receipt by this month-end. The GDR will be listed on the Luxembourg Stock Exchange, said N R Munjal, managing director.

The issue proceeds will be used for capacity expansion, setting up two US FDA-compliant facilities and a research and development centre at Mohali in Punjab.

A part of the fund would be utilised for product registration and IPR-related activities. Post-GDR, promoters' stake will come down to 29 per cent from 31 per cent, while foreign institutional investors holding will be diluted to 30 per cent from 36 per cent.

Ind-Swift is planning to set up three new manufacturing units in Punjab, Himachal Pradesh and Jammu and Kashmir as part of its expansion with an investment of Rs 100 crore (Rs 1 billion). This is expected to be completed over six to nine months.

Among the new manufacturing projects, the Punjab facility would be 100 per cent export oriented. The other projects include a new finished-dosage facility at Baddi (Himachal Pradesh) and a new unit at Samba, Jammu. The unit at Jammu is near completion and is expected to commence production by this month-end.

Company sources said post-expansion, the capacities are expected to increase by two-three folds, with an estimated 30 to 40 per cent rise in top line and bottomline.

Company sources said the company has also purchased 7 acre in the tax-free zone of Baddi for setting up a new formulation facility dedicated for manufacturing oncology, cephalosporins, beta lactum, herbal and neutraceutical products.

Ind-Swift has received its first US patent for "controlled release macrolide pharmaceutical formulations" developed in-house. The patent is for the controlled release dosage form of macrolide antibiotic drug to be taken once a day against the conventional dosage form, which is required to be taken twice a day.

The worldwide market of this drug is $1.5 billion and the molecule goes off-patent by this month-end and its expected volume growth would be more than 30 per cent.
C H Unnikrishnan in Mumbai