Omkar Speciality Chemicals is entering capital market with an initial public offering of 81 lakh equity shares of Rs 10 each on January 24. The issue constitutes 41.27% of the fully diluted post issue paid-up capital of the company.
The company has fixed price band at Rs 95-98 per equity share for the issue, which closes on January 27. Bids can be made for minimum 60 equity shares and in multiples of 60 equity shares therafter.
Omkar Speciality hopes to raise Rs 76.95-79.38 crore through issue, which are proposed to be deployed for setting up of new manufacturing facility at Unit 4 at Badlapur, Maharashtra, with cost of Rs 32.16 crore; expansion of existing manufacturing facilities at Unit 1, Unit 2 & Unit 3 at Badlapur, Maharashtra, with Rs 14.62 crore; and working capital requirements of Rs 10 crore.
Company is mainly engaged in the manufacture and sale of speciality chemicals viz. selenium compounds, iodine compounds, molybdenum compounds etc. and pharma intermediates viz. Potassium Iodate, Bismuth Ammonium Citrate, Bromoform etc.
For the period of six months ended on September 30, 2010, it has reported net profit of Rs 5.05 crore on total income of Rs 51.56 crore.
Almondz Global Securities Ltd is the book running lead manager to the issue.
