According to company sources, AOL plans to raise about Rs 6 crore through the proposed equity issue on preferential basis to financial institutions, banks, mutual funds and promoters. The share premium will be decided as per Sebi guidelines, said the company official. Apart from the equity issue, the company proposed to issue warrants to the tune of 4 lakh to the promoters, which will be fully convertible into 4 lakh equity shares, later.AOL had approached capital markets during 1996 to part-finance the Diketene derivative project with an installed capacity of 1000 tpa. The capacity was further increased by 1000 tpa at a cost of Rs 7 crore funded by IDBI.

AOL has a substantial presence in the derivative market with a range of products such as, Diethyl Acetoacetamide (a pesticide intermediate), Ethyle Acetoacetate (bulk drug intermediate), Acetoacetanalide and other Aralydes (dyes intermediate). For the year 1998-99, AOL had reported a sale income of Rs 36.82 crore and posted a profit of Rs 1.82 crore. During the first quarter the company has achieved a sale of Rs 14.5 crore and projected a total income of Rs 45 crore for the whole of current year, said the company official.

According to the company officials, AOL has started exporting the Acetoacetanalide, a dyes intermediate to France and expected to receive export orders from Japan and Canada during the current year.