Ujin Pharma files IPO papers with SEBI to raise funds
Chemical products supplier Ujin Pharma has filed preliminary papers with capital markets regulator SEBI to raise funds through an Initial Public Offering (IPO) in a move to expand its supply chain and chemical processing footprint.
The proposed IPO is a combination of a fresh issue of 1.18 crore shares along with an Offer For Sale (OFS) of 72.82 lakh shares by promoters — Jinesh Rasiklal Sheth and Umang Ketan Mehta, according to the Draft Red Herring Prospectus (DRHP) filed on Monday.
Of the proceeds from the fresh issue, the Mumbai-based Ujin Pharma plans to use Rs 61.7 crore and Rs 21.6 crore to invest in its associate firms — Altra Agro-Chem and Altra Pharma-Chem — respectively, by subscribing to equity shares and thereby making them subsidiaries.
Additionally, Rs 25 crore will be utilised for debt payment, and a portion would be used for general corporate purposes.
Ujin Pharma is primarily engaged in distributing and supplying a diversified portfolio of solvents, speciality chemicals, acids, pharmaceutical raw materials and nutraceuticals.
Its distribution business involves sourcing chemical products from domestic and international suppliers and supplying them to multiple end-use industries, including pharmaceuticals, agrochemicals, specialty chemicals, industrial and automotive, petrochemicals, paints and coatings, printing inks, and packaging.
SMC Capitals and Marwadi Chandarana Intermediaries Brokers have been appointed as book-running lead managers to assist the company with its public issue. The company’s shares will be listed on the National Stock Exchange (NSE) and the BSE.
