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Wednesday, September 20, 2006

JHS Svendgaard IPO opens on Sept 26

JHS Svendgaard Laboratories is entering the capital market with a public issue of 67,00,000 equity shares of Rs 10 each including promoters contribution of 5,00,000 equity shares of Rs 10 each, as per press release.

The net issue to the public is 62,00,000 equity shares of Rs 10 each. The issue is being made by 100% book building process and the price band is Rs 49 to Rs 58 per equity share. The net issue will constitute 49.60% of the fully diluted post issue paid capital of the company.

The issue opens on Tuesday, September 26, 2006 and closes on Wednesday, October 4, 2006.

JHS Svendgaard is a dental and oral healthcare products manufacturing company. It manufactures wide range of dental and oral care products acting as contract manufacturer for many domestic as well as global brands. Starting with the manufacturing of toothbrushes, the company has ventured into other oral care products like toothpaste, whitening gel, whitening mouth rinse, denture cleaning effervescent tablets and tongue cleaner.

The company has three production facilities of which two are located in New Delhi and a 100% EOU is located in Noida SEZ in Uttar Pradesh.

Looking at the vast growth potential in the oral care market in India, the company is now setting up an integrated manufacturing facility at Kala Amb, District Sirmour in the State of Himachal Pradesh and also increasing its capacity in its 100% EOU at Noida. For the Kala Amb facility, the company will import anchor free technology enabled machineries from Belgium for the manufacture of state-of-the-art toothbrushes. Automated machinery will also be acquired for the manufacture of toothpaste and other oral care products. The total cost for the new and expansion projects is estimated at Rs 51.77 crore (Rs 517.7 million).

The new and expansion projects are in an advanced stage of implementation and commercial production is expected to commence in December 2006. Post expansion the annual installed capacities of all products will increase substantially – toothbrushes from 40 million units to 116 million units; toothpaste from 450 tonnes to 2,700 tonnes; denture cleaning tablets from 5 million units to 180 million units and other oral care products from 60,000 litres to 5,00,000 litres.

The company’s strategy includes being the preferred contract manufacturer to the retail chains in India as well as those planning to enter the Indian market. This shall provide the company with a ready platform to allow retail giants replicate the model of international market by selling products in their stores under their own brand name.

The company enjoys significant advantages on account of its in-house facilities and low turnaround time, quality assurance, design flexibility, integrated operations, economies of scale and professional management.

For the year ended March 31, 2006, JHS Svendgaard posted net profit of Rs 4.03 crore (Rs 40.3 million) on turnover of Rs 36.93 crore (Rs 369.3 million).

The equity shares of the company will be listed on the National Stock Exchange of India and the Bombay Stock Exchange.

UTI Bank, Centrum Capital and Bajaj Capital are the book running lead managers to the issue.


At 12:34 PM, Blogger Swethapriya said...

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