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Monday, January 16, 2006

Dynemic Products IPO opens on January 18

Ahmedabad-based Dynemic Products, engaged in the manufacturing of food colours, lake colours, blended colours and dye intermediate, is entering the capital market with its initial public offer, IPO, to raise Rs 15.47 crore (Rs 154.7 million), reports Business Standard.

The company is issuing 44,21,000 equity shares of Rs 10 each for cash at premium of Rs 25 per share.

Citibank N A has sanctioned a term loan of Rs 2.72 crore (Rs 27.2 million) to part finance the expansion projects.

The public issue opens on January 18 and closes on January 25.

The company is raising the fund to part finance its Rs 18.19 crore (Rs 181.9 million) expansion project for backward integration and expanding the capacities of its two existing units in GIDC Ankaleshwar. The capital expenditure in Unit I and Unit II Plants will be Rs 4.19 crore (Rs 41.9 million) and Rs 13.22 crore (Rs 132.2 million) respectively.

Started in 1991 as manufacturing of dye intermediate used in foods colour industry, it had a turnover of Rs 25.75 crore (Rs 257.5 million) in 2005. The company exports 77% of its products to 41 countries worldwide.

"About 50% of our exports is in Europe, 5% in US and the remaining is in far east and other countries," Bhagwandas K Patel, Chairman and Managing Director of the company said.

He said that in view of the huge potential of the US market, Dynemic has also opened Dynemic USA Inc, a marketing subsidiary in US.

The lead manager to the issue, Centrum Capital, is also investing in the IPO with a lock-in period of one year at the same price offered to the public.

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