Calyx Chemicals And Pharmaceuticals Plans Public Issue

Calyx Chemicals and Pharmaceuticals (CCPL) is planning to tap the primary market to raise funds and to get listed on the BSE and NSE. CCPL is coming up with an Initial Public Offering (IPO) of 70.5 lakh equity shares of face value of Rs 10 of the company aggregating 30.05% of fully paid diluted post issue paid-up capital.

CCPL will also be coming up with a pre-IPO placement of 10 lakh equity shares of the company aggregating upto Rs 30 crore. If this pre-IPO placement is successfully completed, the number of equity shares in the IPO will be reduced to the extent of equity shares proposed to be allotted in the pre-IPO placement. The company has further reserved 50000 equity shares for its employees. Hence, the net issue open for the public will aggregate 29.83% of the fully diluted post issue paid-up capital of the company.

The company is a manufacturer of Active Pharmaceutical Ingredients (APIs) and Intermediates in India. It has a strong presence in the manufacture of macrolides, anti-tuberculosis drugs and anti-malarials and an increasing focus on Contract Research and Manufacturing Services (CRAMS) to transnational pharmaceutical companies. At present, the company is catering 286 customers located across 39 countries. Its product portfolio contains almost 70 APIs and Intermediate products. CCPL has 2 manufacturing facilities at Tarapur and Dombivli in Maharashtra. The Tarapur facility has been inspected by the USFDA.

The company has plans to set up a new cGMP compliant facility for Intermediates and repayment or pre-payment of identified loan facilities. It operates in a highly regulated industry and requires a good number of clearances from various governmental authorities in India and globally.

We would reserve comment on whether you should subscribe to this IPO when it hits the market till such time as the company comes up with final pricing details. Watch this space for more details.