Ujin Pharma files draft papers with SEBI for IPO

Chemical importing and distribution company Ujin Pharma has filed preliminary papers with market regulator Securities and Exchange Board of India (SEBI) to raise funds via an initial public offering.

The proposed initial share sale is a combination of fresh issuance of 11,869,100 shares and an offer for sale (OFS) of 7,282,300 shares by promoters Umang Ketan Mehta and Jinesh Rasiklal Sheth, as per the draft red herring prospectus.

The net proceeds will be used for funding the following objectives:

• Investment in Altra Agro-Chem Pvt Ltd
• Investment in Altra Pharma-Chem Pvt Ltd
• Repayment of certain borrowing availed by the company
• General corporate purposes

"Our company expects to receive the benefits of listing of the equity shares on the stock exchanges and enhancement of our company’s visibility and brand name amongst our existing and potential customers and creation of a public market for our equity shares in India," according to the DRHP.

The company will reserve 50% of the net offer for qualified institutional buyers, 35% for retail investors and 15% for non-institutional investors.

Marwadi Chandarana Intermediaries Brokers and SMC Capitals are the issue's book-running lead managers, while KFin Technologies is the registrar.

The firm's shares will be listed on the National Stock Exchange (NSE) and the BSE.

Ujin Pharma is involved in distribution and supply of a diversified portfolio of speciality chemicals, solvents, acids, monomers, pharmaceutical raw materials and nutraceuticals.

With more than two decades of operational experience in the chemical sector, it has developed sourcing relationships with international and domestic suppliers, allowing it to procure various chemical products and supply them to traders, distributors and customers operating across multiple end-use industries.

Its products are supplied to customers operating in agrochemical, pharmaceutical, petrochemical, specialty chemical, industrial and automotive sectors, as well as printing inks, paints and coatings and packaging applications.