Altret Bio-Tech’s IPO To Hit The Markets Soon

Altret Bio-Tech (ABL), a Gujarat based-company is coming up with a public offering to issue fresh equity shares and thus list its shares on the BSE. It has plans to raise Rs 27 crore through this IPO. The issue will be made through a 100% Book Building Process. However, the company has not disclosed the issue size and price for this offering.

ABL was founded in the year 2006 and is engaged in the business of cultivation of Jatropha Curcas plants. It supplies these seeds to the farmers in the vicinity of its plantation. Along with this, it also supplies Jatropha Curcas seedlings and saplings, which are developed at the company's nursery. Jatropha produces non-edible vegetable oil, and it is utilised for the production of soap. This oil is also used as lamp fuel and fuel for special diesel engines, etc. The Jatropha Curcas is a small tree, which produces seeds in a time period of three to four years.

Currently, about 85-90 acres of land is being utilised for Jatropha plantation. In some portion of this land, the company has bore wells and ponds for irrigation facility. On the remaining land, it will set up Jatropha seed oil extraction plants.

The proposed seed extraction plant will have a capacity of 100 TPD, which will be located at Saraspur village in Kutch. The seed oil extraction plant will be used for oil extraction directly from Jatropha seeds, which will be further used as a bio-diesel for fuel requirement. The neem seed oil extraction plant will be of 50 TPD capacity. This oil will be used for producing products like soap, hair products, hand cream etc. Further, the bio-fertilizers and bio-pesticides will be used in the cultivation process.

On the financial front, the company posted Rs 56 lakh revenue in H1FY13 as compared to Rs 78 lakh in FY12. The annualised revenue of ABL will be Rs 112 lakh for the period FY13. The company's bottomline posted Rs 18.74 lakh, which on annualised basis will grow to Rs 37.48 lakh for FY13.

Further, the issue proceeds will be utilised for setting up Jatropha neem seed oil extraction and solvent extraction plant, for setting up bio-fertilisers and bio-pesticides plants, to fulfill the working capital requirement and to meet general corporate expenses. The extraction plant setting will have an expected investment of Rs 1190 lakh and the bio-fertiliser plant will have an expense of Rs 478.70 lakh and Rs 500 lakh is the company's working capital requirement. ABL has not disclosed the issue price, issue size and lot size for this public offering. We will keep readers updated as and when other details regarding the issue are disclosed.