Vijaywada based Chemcel Biotech (CBL) is all set to enter the capital market today (Sep 09), with an initial public offering (IPO) of 15,400,000 equity shares of Rs 10 each for cash at a premium of Rs 6.

The fixed priced issue will close on Friday (Sep 12, 2008).

The net issue to the public would be of 12,800,000 equity shares comprising 49.39% of the company’s post issue paid-up capital. The registrar to the issue is Bigshare Services. The equity shares of the company would be listed on the Bombay Stock Exchange.

Besides strengthening its increasing agrochemical segment, as a part of its growth plans, the company has decided to establish a Bio-Diesel manufacturing facility at a cost of Rs 109.50 million at Kondapalli near Vijaywada, Andhra Pradesh.

The company would also meet up extra working capital requirements as a result of augmented operations for the Agrochemical & Bio Fertilizer division at Rs 94.50 million.

Incorporated on Sep 29, 1995, Chemcel Biotech is involved in the manufacturing of agrochemicals, which includes insecticides, Fungicides and plant growth promoters.

The company has Central Insecticide Board (CIB) listing for 34 products to make pesticides for crops, which consists of paddy, cotton, sugarcane, turmeric, chilies, pulses, vegetables and so on.