Deccan Health Care Limited aims for IPO on December 18

The net proceeds will be utilised for repayment/prepayment of certainly secured borrowings availed by the Deccan Health Care Limited, purchase of plant & machinery and related civil work as well as general corporate purposes.

Mumbai: Health product manufacturing company, Deccan Health Care Limited, on Thursday announced that it will hit the capital market with an initial public offer of 42,12,000 equity shares of face value of Rs 10 each to raise capital of around 40 crores for repayment of loans and other purposes.

The price band of IPO, fixed in the price band of Rs 95 to Rs 100 per equity share, will open on December 18 and close on Dec 20. The offer comprises of fresh issue of 22,12,000 equity shares by the company and 20,00,000 equity shares for sale by the two shareholders (14,00,000 equity shares by Hitesh Patel and other 6,00,000 by Meenakshi Gupta), announced managing director of the company Pinto Gupta here.

Of the total offer, 2,11,200 equity shares of face value of Rs 10 are reserved for subscription, while 40,00,800 equity shares of face value of Rs 10 each is the net offer.

The offer and the net offer will constitute 26.81 per cent and 25.46 pc, respectively, of the fully-diluted post-offer, paid-up equity share capital of the company, he informed.

The net proceeds will be utilised for repayment/prepayment of certainly secured borrowings availed by the company, purchase of plant & machinery and related civil work as well as general corporate purposes.

Pantomath Capital Advisors Private Limited is the book running lead manager to the issue, whereas Bigshare Services Private Ltd is the registrar to the issue, Mr Gupta added.

Hyderabad based nutraceutical maker Deccan Healthcare manufactures and sells about 1,500 formulations of micronutrients called nutraceuticals for hair care, skin care, heart care, and immunity building.