The issue proceeds will be used to set up a soft gel manufacturing facility at Goa (Rs 19.40 crore), a research and development centre at Mumbai (Rs 11.30 crore), besides augmenting working capital resources (Rs 18.70 crore) and to meet preliminary issue expenses of Rs 4 crore.

Post issue, the promoter group's holding (i.e.the Saldanha family) will come down to around 57.04 per cent from around 77.07 per cent.

The issue opens on December 10 and closes on December 16. The equity shares are proposed to be listed on the Mumbai Stock Exchange and the National Stock Exchange and the issue is being lead managed by DSP Merrill Lynch and Enam Financial Consultants Ltd.

Glenmark Pharmaceuticals executive director Glenn Saldanha said as part of its corporate strategy, vetted by Arthur Andersen, the company proposes to export formulations to the US. For this, it proposes to set up the Goa soft gel capsules facility with a proposed capacity of 3,600 lakh capsules per annum and as per US FDA specifications.

On the company's R&D plans, he said that the proposed drug discovery centre at Thane Belapur would be integrated and equipped to carry out basic drug discovery research, besides new drug delivery systems. Key Glenmark brands include the Candid range, besides Ascoril and Altacef. Ascoril is ranked 103 while Candid-B is ranked 155 as per the ORG.

Glenmark Pharmaceuticals has also created an employee welfare trust to implement its employee stock option plan, which would, in turn attract and retain talent. The company also plans to expand its board subsequently.

Meanwhile, Glenmark Pharma's subsidiary in Portugal (set up in alliance with NRIs) has obtained registration for marketing certain products, while plans are also afoot to enter the Canadian market and the company has obtained approval from the RBI for a subsidiary in Canada.

Glenmark Pharmaceuticals plans to merge subsidiary, GM Pharma Ltd, with itself. Glenmark had earlier funded the acquisition of leasehold land of MIDC for its proposed R&D centre.

Glenmark Pharmaceuticals expects to close March 31, 2000, with sales of Rs 136.50 crore and a net profit of Rs 16 crore.