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IOL Chemicals And Pharmaceuticals Limited, Punjab

IOL Chemicals And Pharmaceuticals Limited, Punjab

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25th September 2007
OUTCOME OF THE BOARD MEETING HELD ON 25.09.2007

The Board of Directors in its meeting held on 25th September , 2007 has reviewed the completion of existing capacities which are as follows :

a. of Acetic acid 50, 000 TPA

b. of Ethyl Acetate 33,000 TPA

c. of Acetic Anhydride 12,000 TPA

d. of Ibuprofen 3600 TPA

and set up of 4MW captive cogeneration plant

and now decided to undertake the expansion of the existing capacities, to set up manufacturing facilities to strengthen back ward and forward integration, cogeneration project with a total project cost of about 180 crores as per the following details to sustain and improve such growth:

in crores

1. Product: Acetic Acid

Existing capacity( TPA): 50,000

Proposed capacity (TPA):60,000



2. Product: Acetic Anhydride

Existing capacity( TPA) : 12,000

Proposed capacity (TPA): 18,000



3 Product: Ibuprofen

Existing capacity( TPA) 3,600

Proposed capacity (TPA) 7,200



4 Product Co generation project

Existing capacity: 4MW

Proposed capacity :14MW



5 Product:Monochloro Acetic Acid and Acetyl chloride

Existing capacity( TPA):-

Proposed capacity (TPA) 6,600 & 4,800



6. Product: Iso Butyl Benzene

Existing capacity( TPA):-

Proposed capacity (TPA) 6,000



The board has also discussed that the company has planned for further expansion of Ibuprofen due to the increasing export demand. Presently the company is exporting its finished products mainly in South Asian countries and the company is taking effective steps for getting USFDA approvals. The company is ideally located nearby to Baddi (H.P.), J & K, & Utrakhand, which are tax exempted zones and various pharmaceuticals companies are coming there for getting the benefits of tax exemption. The company will also be benefited from setting up of backward integration of Ibuprofen with setting up of Captive MCA, Acetyl Chloride and IBB plant. The setting of additional Co-generation plant will make the company self reliance for meeting its own energy requirements. Moreover, the major raw materials are easily available in the vicinity of Punjab & U.P.

The Board decided to complete these expansions by way of partly issuing convertible instruments , term loan from financial institutions and internal accruals .

The Board also approved to issue on preferential basis for cash consideration, in terms of SEBI Guidelines and other applicable laws :

a) upto 13,30,000 (Thirteen Lac Thirty Thousand) Equity Shares of face value of 10/- each at a premium of 65/- per share to M/s. Indiastar (Mauritius) Limited, Non-promoter of the Company, in accordance with the applicable law,

b) up to 13,99,998 (Thirteen Lac Ninity Nine Thousand Nine Hundred Ninety Eight) unsecured 10% fully convertible debentures (FCDs) of 100 each aggregating to 13, 99, 99,800 (Rupees Thirteen Crores Ninity Nine Lac Ninety Nine Thousand Eight Hundred only) at an Interest rate of 10% p.a. payable monthly convertible in one and more trenches within a period of 18 months from the date of allotment into equity shares of face value of 10 each at a premium of 65 per share to Indiastar (Mauritius) Limited, Non-promoter of the Company .

c) to issue, offer and allot up to 23,00,000 (twenty three lacs) warrants ,carrying an option to the holder of such warrants to subscribe to one equity share of 10/- at premium of 65/- per share for every warrant held, within 18 months from the date of allotment of the warrants, to following persons, on preferential basis in accordance with the applicable law:

i) 12,00,000 (twelve lacs) warrants to Mayadevi Polycot Limited, Promoter of the Company.

ii) 11,00,000 (Eleven lacs) warrants to Indiastar (Mauritius) limited, Non-promoter of the Company.

on such terms and conditions including as to dividend, premium, conversion etc., as the Board may, in its absolute discretion, deem fit .






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