Parabolic Drugs IPO opens on June 14

MUMBAI – Chandigarh-based Parabolic Drugs, a manufacturer of APIs and API intermediates, will enter the primary market on June 14, 2010 to raise Rs 200 crore through its initial public offer.

The price band of the issue is fixed at Rs 75-85 per share. The issue closes June 16, 2010.


The issue comprises an offer for sale of 20,25,702 equity shares by BTS India Private Equity Fund and Alden Global (Mauritius).

The company intends to use the proceeds towards financing its capital expenditure plans and prepayment of loans.

It will invest Rs 20.32 crore for establishment of its third multipurpose block in Derabassi, Rs 32.55 crore for establishment of sterile Cephalosporin plant, Rs 16.03 crore for establishment of Chachrauli plant, Rs 46.62 crore in its subsidiary, Parabolic Research Labs and Rs 38.83 crore to repay/prepay outstanding loans to ICICI Bank and UCO Bank.

Avendus Capital & ICICI Securities are the Book Running Lead Managers and SPA Merchant Bankers Ltd is the Co-Book Running Lead Manager to the issue and Link Intime India Pvt. Ltd. is the Registrar to the issue.
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