STELLAR DRUGS LTD.
BRIFF HISTORY :
Incorporated on 1st February, 1988 as a private limited company. Subsequently
converted into a public limited company on 20th February, 1992. Promoted by
Sanjeev Krishna Iddalgi, Madhav Mulgund and Smt. Neha Mulgund. Presently
engaged in the manufacture of Trimethoprim and Atenolol with an installed
capacity of 36 TPA and 12 TPA respectively.
TECHNICAL ARRANGEMENTS :
Entered iinto an agreement with Sanman Technical Services, Dombivli (East)
for providing basic design, basic engineering, erection, supervision etc, for
a total fee of Rs. 7 lakhs.
COST OF THE PROJECT & FINANCE :
The total cost of the project at Rs. 570.28 lakhs was to be met by equity
capital of Rs. 456.57 lakhs, term loan of Rs. 91.24 lakhs and others of Rs.
SCHEDULE OF IMPLEMENTATION :
Commercial production expected to commence by August 1994.
MARKETING ARRANGEMENTS :
Has entered into a MOU with Merind Ltd. for exeport of raw material for a
period of 5 years for a commission for 3% to 5% of the FOB value of Exports.
Also entered into another agreement with M/s Chemox Chemical Industries
Limited, Bombay for supplying raw material and to get 48 MT of Trimethoprim
IP/BP88 per annum manufactured by the Company for a period of one year.
RISKS AS PERCEIVED BY THE MANAGEMENTS :
(i) Trimethoprim and Ibuprofen and their formulations are covered under Drug
Price Control Order (DPCO), any increase in the cost of the prices by the
Government would affect the profitability of the Company. (ii) In the absence
of any stake of Financial Institution/Banks, deployment of the funds is
entirely left at the discretion of the promoters, (iii) Consent of Pollutiion
Control Board for expansion project yet to be obtained. (iv) The Company has
outstanding dues towards instalments of principal and interest against term
loan to Madhya Pradesh Audyogik Vikas Nigam. (v) The appraising agency is not
participating in the means of finance.
DETAILS OF THE ISSUE :
Authorised capital of Rs. 500 lakhs comprises 50 lakhs equity shares of Rs.
10 each. 7,67,850 equity shares of Rs. 10 each issued, subscribed and paid
up, 37,97,850 equity shares of Rs. 10 each, now being issued, of which tthe
following shares are reserved for firm allotment: (i) 5,47,850 shares to
promoter, Directors etc. (ii) 2,00,000 shares to Apple Mutual Fund. Of the
remaining, the following shares are reserved for allotment on preferential basis: (i) 12,000 shares to employes; (ii) 4,50,000 shares to Indian Mutual
Funds; (iii) 5,00,000 shares to NRI's (iv) 3,25,000 shares to Medi-caps
Limited with a provision to add back unsubscribed portion, if any from the
preferential quota to the public issue of 17,63,000 shares.