Chemcel Biotech, engaged in the manufacture of agrochemicals, has field the DRHP with SEBI on 2/01/08 to enter the capital market with an offer of 1.54 crore equity shares of Rs 10 each at a price to be decided through the book building process. The issue would constitute 49.38% of the fully diluted post issue paid up capital of the company.

The company proposes  to list its shares on BSE. The BRLM to the issue is Allbank Financial.

The company intends to use the proceeds from the issue, to part finance its Rs 14.45 crore diversifications into production of bio-diesel from jatropha curcas by setting up a bio-diesel manufacturing unit, having a capacity of 6 tonnes per day of bio-diesel, along with a 2,000 acre captive jatropha curcas plantation.

Chemcel Biotech, incorporated in 1995, manufactures fungicides, insecticides and pesticides at its unit in Vijayawada, Andhra Pradesh.  The company has 34 products in its product portfolio which consists of different kinds of insecticides. The company manufactures various formations comprising of liquids, granules and powder  formulations. The company's product range covers most of the crops and majority of plant infections.  It has certificate of registrations for 34 formulations.

The company has already imported pilot plant  from UK and has a 100% tie-up to export the entire production. The company proposes to purchase about 2,000 acres of land for jatropha curcas plantation which would yield seeds to meet the total requirement of 20 tpd to produce 6 tpd of bio-diesel.

For the year ended March 31, 2007, the company recorded an income of Rs 23.48 crores and net profit of Rs 94 lakhs as compared to an income of Rs 21.80 crores and net profit of 76 lakhs  for FY06. For the quarter ended 30.6.07, the company's income was Rs 61.17 lakhs and net profit was 10.37 lakhs.