Financial Daily from THE HINDU group of publications
Thursday, Jan 26, 2006


News
Features
Stocks
Shipping
Archives
Google

Group Sites

Corporate - Preferential Allotments
Corporate Results - Pharmaceuticals


JB Chem to raise funds by pref issue; net up 24 pc

P.T. Jyothi Datta

Mumbai , Jan. 25

THE Mumbai-based J.B. Chemicals and Pharmaceuticals is planning a preferential issue to raise $10 million (about Rs 44 crore) to fund its expansion plans.

The company expects to raise funds through the issue of equity on a preferential basis to New Vernon Private Equity Ltd, subject to regulatory and shareholder approval.

The promoter Mody family's equity will come down marginally from 58 per cent to about 55 per cent, post-issue and New Vernon will hold about 4.6 per cent equity, the JB Chemical's President, Mr Pranabh Mody, told Business Line. This is the first time the company has got a private equity investor as a strategic partner, he said.

The company would be raising funds through issue of 39,00,000 equity shares at Rs 114 per share of Rs 2 each (i.e., premium of Rs 112 per equity share) on preferential basis to New Vernon Pvt Equity Ltd (formerly New Vernon Bharat Ltd), the company had told the Bombay Stock Exchange, after its board cleared the proposal.

Manufacturing facilities: The funds, in some part, would go towards its plans to set up two manufacturing facilities: a Rs 10-crore bulk drug plant and a Rs 55-crore injectibles plant, both at Panoli, said Mr Mody.

The injectibles plant is part of JB Chem's strategy to take its own brands into the US market, he said. Exports account for about 55 per cent of its revenue of over Rs 360 crore.

But at present Russia is the primary market, accounting for about 50 per cent of its revenues in the last quarter or three months ended December 2005.

Acquisition is part of the growth strategy, but it not something that they were actively scouting, he added.

Third-quarter net up 23.6 pc: Meanwhile, for the third quarter ended December 31, 2005, the company posted a 23.6 per cent growth in net profit at Rs 19.11 crore against Rs 15.46 crore for the corresponding quarter in the previous year. Total revenues increased 26 per cent from Rs 104.06 crore to Rs 131.43 crore.

Both the domestic market and exports contributed almost evenly to the performance, Mr Mody said, with exports growing at 26 per cent and the local market growing at 27 per cent.

JB Chem shares closed at Rs 119.95, down 1.64 per cent on the BSE.

More Stories on : Preferential Allotments | Pharmaceuticals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Caught fire


Brand valuation of Tata cos moves up to Rs 24,396 cr
L&T-Samsung Heavy consortium bags ONGC order
Power Finance public offer slated for April-June — Merchant bankers to be appointed shortly
Synygy plans foray into new markets
JB Chem to raise funds by pref issue; net up 24 pc
Madras HC clears BPL Cellular's capital reduction programme
E-filing facilities: Cabinet nod for ordinance to amend Companies Act
Novartis loses patent claim on cancer drug — Patents Controller upholds Natco contention
Dunlop EGM approves takeover by Ruia group — `Company need not go for open offer'
Sundram Bleistahl flags off first consignment — Targets Rs 135-cr turnover in seven years
Rama Newsprint okays capacity expansion plan
Jindal to set up refinery, smelter plants in Vizag
NALCO plans expansion
`Toyota yet to finalise new plant location'
Tube Investments to invest Rs 30 cr in China plant
Sanyo-BPL joint venture takes off — Eyes Rs 2,000-cr revenues in 3 years
Hikal hopes to get European nod for 3 APIs by April
ONGC-Reliance PMT venture wants MRPL, instead of IOC, to lift oil
Reliance for inorganic growth to reach global leadership
Narottam Sekhsaria is new ACC chairman



The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line