| The $2-billion Indiastar (Mauritius) fund, foreign private equity investor, has picked up an 18.5 per cent equity stake in Punjab-based IOL Chemicals and Pharmaceuticals Ltd (formerly known as Industrial Organics Ltd), a leading manufacturer of industrial chemicals and bulk drugs in the country. |
| The board of IOL Chemicals and Pharmaceuticals today approved the issue of up to 1.33 million equity shares with a face value of Rs 10 per share, each at a premium of Rs 65 per share to Indiastar (Mauritius) Ltd, and 1.4 million unsecured fully convertible debentures (FCDs) of Rs100 each aggregating to Rs 14 crore. |
| These FCDs would be converted within a period of 18 months from the date of allotment into equity shares of a face value Rs 10, each at a premium of Rs 65 per share to Indiastar (Mauritius) Ltd. |
| The board also decided to issue up to 2.3 million warrants, of which 1.2 million warrants will be issued to Mayadevi Polycot Ltd (promoter of the company) and 1.1 million warrants would be issued to Indiastar (Mauritius) Ltd. |
| They would carry an option to convert each warrant into one equity share of face value of Rs 10 per share, each at a premium of Rs 65 per share within a period of 18 months from the date of the allotment. |
| Currently, the company's paid up capital is Rs12.05 crore which would increase to Rs 23.25 crore after the above/outstanding conversions.Post conversion, the Indiastar Fund would hold close to 18.5 per cent of the increased equity of the company. |
| IOL Chemicals and Pharmaceuticals Ltd, based out of Ludhiana-Punjab, manufacturers and exportersindustrial chemicals, organic chemicals and drugs like Glacial Acetic Acid, Ethyl Acetate, Acetic Anhydride, Ibuprofen. |
| The company has completed the expansion of its capacities of acetic acid to 50,000 TPA, Ethyl Acetate to 33,000 TPA, Acetic Anhydride to 12,000 TPA and Ibuprofen to 3,600 TPA. The company has also put up a 4Mw cogeneration power plant for captive consumption. |
| The company is also going in for expansion of Rs180 crores to be funded partly by aforesaid securities, debt from financial institutions and internal accruals. |
| The company would further expand Ibuprofen capacity to meet the growing export demand. Currently, it is exporting its finished products mainly in South Asian countries. |
| The major customers for the company include United Phosphorus Ltd, Rallis India Limited, Ranbaxy Laboratories Limited, Nector Life Science Limited etc . |
| IOLCP is also exporting products to countries such as Bangladesh, Dubai, Libya, Lebanon, Thailand, Syria & Singapore. |
| The company for the year ended March 2007, has posted a sales of Rs.232 Crores with a PAT of Rs. 7.55 Crores. |
| The company is also going in for expansion of Rs.180 Crores to be partly funded by aforesaid securities, debt from financial Institutions and internal accruals. |
| The company would further expand Ibuprofen capacity to meet the growing export demand. At present, it is exporting its finished products mainly in South Asian countries. |
Source: Business Standard