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Bal Pharma eyeing North Indian location

Our Bureau

Bangalore , April 26

THE Bangalore-based bulk drugs maker Bal Pharma is considering a north Indian location for its proposed capacity expansion.

The company has shortlisted Uttaranchal and Jammu to set up its formulations facility, with an investment of Rs 18.52 crore.

The Bal Pharma Managing Director, Mr Shailesh Siroya, said on Tuesday that the facility would require 11 acres of land. The company is evaluating the benefits of the excise duty-free States and would finalise the location shortly. The new plant would add about 100 employees. Bal, he said, had nearly 1,000 staff.

The facility with an annual capacity of 720 million tablets and 240 million capsules will be part of Bal Pharma's Rs 32.2-crore overall expansion. This includes an API (active pharma ingredients) plant at Bangalore, to be set up with an investment of Rs 13.75 crore. The company already has two plants in Bangalore and a parenterals unit at Pune.

Rights issue: The expansion will be part-funded by Bal Pharma's 3:5 rights issue amounting to Rs 11.75 crore. The issue opens on Wednesday.

The issue of 39,18,000 shares is being offered at Rs 30 per equity share or a premium of Rs 20 each. The offer closes on May 26. Bal plans to list on the NSE after completing the rights issue.

Mr Siroya said the rest would be raised as term loan and out of internal accruals. The rights issue follows a preferential allotment made in October 2004. Bal, which had a turnover of Rs 62 crore during 2003-04, registered a turnover of Rs 49 crore for the first nine months of 2004-05 and PAT of Rs 2.49 crore.

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