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Ahmedabad pharma co to bring Rs225 crore IPO

27 months after withdrawing IPO in 2011, Intas Pharma files DRHP on Friday.

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With the intention of raising more than Rs225 crore via initial public offering (IPO), the Ahmedabad-based pharmaceutical company, Intas Pharmaceuticals, has filed draft red herring prospectus (DRHP) with Securities & Exchange Board of India (Sebi) on Friday, after a gap of 27 months.

The objective of the IPO is to make investors exit from the company, said an announcement made by company, promoted by Hasmukh Chudgar and family. It said that with the fresh issue, the company wants to raise Rs225 crore, which excludes offer for sale of investor company, Mozart Ltd’s 1.16 crore equity shares. At present, Mozart Ltd holds about 16% stake in Intas Pharma.

“Through fresh issue Intas Pharma will raise Rs225 crore. Simultaneously, Mozart Ltd also wants to divest partial holding through offer for sale of their equity shares. As the price is not fixed, it is difficult to say how much more amount will be raised by Mozart through the sale,” said chief financial officer, Jayesh Shah.

“The objectives of IPO had remained almost same when the company had planned issue in 2011. At that time, company wanted to raise Rs425 crore. But now, the situations have changed and hence, through a fresh issue we want to raise Rs225 crore. Apart from that, company will also be utilizing the funds for expansion and general corporate purposes,” Shah said.

The statement issued by company said that the IPO will be made through a public issue of equity shares of face value of Rs10 each including a share premium, which will be determined on a later date.

the issue shall be allocated on a proportionate basis to qualified institutional buyers. The company may allocate up to 30% of the QIB portion to anchor investors at the Anchor Investor Allocation Price, on a discretionary basis, out of which at least one-third will be available for allocation to domestic mutual funds only.Kotak Mahindra Capital and Morgan Stanley are the book running lead managers to the issue and Link Intime is the registrar to the issue, said the statement.

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