Southern Online Biotech files draft prospectus

Hyderabad, Dec 7 | Updated: Dec 8 2004, 05:30am hrs
Southern Online Biotechnologies Ltd has filed its draft prospectus with the Securities and Exchange Board of India (Sebi) on Monday for a Rs 17.1 crore rights-cum-public issue, a company release said. The size of the issue will be 1.71 crore shares of Rs 10 each, at par. The proceeds of the issue will be to finance a proposed bio-diesel production unit in Choutuppal near Hyderabad at a cost of Rs 17.1 crore, which is expected to commence commercial operations by November 2005. This is part of the companys diversification plans, it added.

Of the proposed Rs 17.1 crore to be raised, the promoters of Southern Online Biotechnologies propose to contribute Rs 2.85 crore and the balance Rs 14.25 crore will be raised by friends and relatives of the promoters and the public through rights-cum-public issue. UTI Securities is acting as the lead managers for the proposed issue. Southern Online Biotechnologies has achieved a total income of Rs 1.02 crore for the quarter ended September, posting a net profit of Rs 5.1 lakh and the revenue was primarily from its ISP operations, it stated.