Kiri Dyes and Chemicals (KDCL), one of the leading manufacturer and exporters of dyes and dyes intermediates, is entering the capital market with its initial public offering (IPO) of 37.5 lakh equity shares of face value of Rs 10 each.

The price band has been fixed between Rs 125 to Rs 150. The issue will open on March 25 and close on April 2, 2008.

The issue will constitute 25% of fully diluted post issue paid up capital of the company.

Credit rating agency, CRISIL has assigned IPO Grade 2/5 to the initial public offering of the company indicating fundamentals are below average relative to other listed equity securities in India.

Ahmedabad-based, Kiri Dyes, one of the top 10 producers of reactive dyes globally in terms of volume and quality, is an Ahmedabad based company and has been in the business of manufacturing Reactive Dyes for past 9 years.

The promoters of the company have 40 years of experience in the chemicals business. The product range of company caters to textiles, leather, paint and printing-ink industries.

The Company sells its products to customers across various countries including Korea, Turkey, Indonesia, Taiwan, U.S.A, Canada, and other European countries apart from domestic sales.

KDCL plans to raise funds for executing its backward integration project for manufacturing three key raw materials for dye intermediates.

With the implementation of the backward integration project for the manufacturing of the intermediates the company aims to enhance its market share.

The shares of the company are proposed to be listed on Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

The Book Running Lead Manager to the issue is Centrum Capital.