Chemcel Biotec To Hit The Capital Market - Sep 8, 2008

Chemcel Biotec Ltd is entering the capital market with an initial public offering of 1,54,00,000 equity shares for cash at a premium of Rs6. The price band for the issue has been fixed at Rs16 for equity share of Rs10.

The issue will open on September 9, 2008 and will close on September 12, 2008. The shares are proposed to be listed on the Bombay stock exchange and National stock exchange.

AllBank Finance Ltd is the lead manager to the issue.

The purpose behind the issue is to raise capital to set up Bio-Diesel manufacturing unit, to meet the additional Working Capital requirement on account of increased operations for the Agrochemical & Bio Fertilizer division, to repay short term loan of Rs 120.00 Lakhs availed from Union Bank of India for meeting the project expenses, to partially repay the working capital loan facility availed from Union Bank of India, to meet the public issue expenses and to achieve the benefits of listing our Company's shares on Bombay Stock Exchange Limited (BSE).

Chemcel Biotech Limited is in the business of manufacturing of Agro Chemicals and its main products are in three forms i.e. liquids, granules and dusts