The company derived 100% of its gross income (Rs374.52 crore) from the antibiotics category in the nine months ended December 2009
Chandigarh-based pharmaceutical company Parabolic Drugs Ltd (PDL) hits the primary market with its initial public offering (IPO) on 14 June 2010. The company has fixed the price band at Rs 75-Rs85 per share and plans to raise Rs200 crore through the issue.
The IPO has been assigned 'Grade 2' by ratings agency Brickwork, indicating 'below average' fundamentals. ICICI Securities Ltd and Spa Merchant Bankers Ltd are the lead book running managers to the issue. The issue closes on 17 June 2010.
Meanwhile, the BSE healthcare index has jumped 11% so far this year.
PDL derived 100% of its gross income (Rs374.52 crore) from the antibiotics category in the nine months ended December 2009 as it specialises in a limited number of therapeutic categories.
The company produces Semi Synthetic Penicillin (SSP) and Cephalosporin range of antibiotics in oral and sterile forms, along with their intermediates.
It had a cash flow of Rs4.42 crore for the nine months ended 31 December 2009. The company registered a net profit of Rs21.41 crore in the nine months ended December 2009 on a total income of Rs350.15 crore.
The company operates in a highly competitive environment especially in the Active Pharmaceutical Ingredient (API) product segment. Parabolic faces entry barriers as the research, testing, manufacturing, selling and marketing of pharmaceutical products are subject to extensive regulations, which differ from country to country.
The name and logo of 'Parabolic' are not registered trademarks of the company. A majority of its raw materials are imported from China. PDL imported 22.62% of its raw material from China in FY09. The company has filed 11 patent applications that are pending approval. The pharmaceutical industry is prone to patent and infringement risks.
The Director General of Foreign Trade (DGFT) and the ministry of commerce have demanded Rs2.17 crore from the company for non-fulfilment of certain export obligations. The company has made preferential allotments to various entities and promoters at different prices on the same date.
PDL will use the proceeds to set up a multi-purpose block III in Derabassi (Punjab), establishing a Sterile Cephalosporin plant at Derabassi, establishing of the Chachrauli plant (Haryana), and for investing in its subsidiary and repayment of loans. Its competitors like Neuland Laboratories and Dishman Pharma have EPS of Rs21.2 and Rs11.2 respectively. Parabolic's EPS has fallen from Rs12.70 in FY08 to Rs6.6 in FY09.
Banks are at present undertaking a one-time exercise to ensure 100% compliance of the KYC procedures by account-holders
The finance ministry is likely to recommend freezing and closure of bank accounts found suspicious during the ongoing exercise by banks to collect information under the 'Know Your Customer' (KYC) norms, reports PTI.
Banks in both the public and private sector are at present undertaking a one-time exercise to ensure 100% compliance of the KYC procedures from all, new and old, customers.
The KYC filing includes sharing personal and other details by a bank customer to the respective banks. All the banks have asked their customers to file fresh and updated details to help compile a fresh list of the account holders as instructed by RBI.
The KYC, suggested by banking regulator RBI to be mandatorily undertaken by all the banks, is a vital procedure adopted by the financial institutions to check money laundering and tackling of terrorist-related financing.
"Once the KYC compliance, as notified by various banks on the directions of the RBI, is completed by this month end the enforcement agencies keeping track of suspicious transactions will suggest freezing or termination of non-KYC accounts," a senior Revenue Department official said today.
However, the final decision rests with the management of individual banks, the official said.
The guidelines for KYC, prepared by Indian Banking Association (IBA) in consultation with financial intelligence units of the country, have also underlined customer profile, account opening procedures, establishing relationship with specific categories of customers as well as an illustrative list of suspicious activities.
Financial enforcement agencies like the Enforcement Directorate (ED) and the Financial Intelligence Unit will also have a better input of the account holder from the banks once they demand information on spotting a suspicious account or transaction, the official said.
The step is aimed at strengthening Anti-money laundering mechanism and checking terror financing through Indian banking channels, the official said.
Under Section 12 (c) of the Prevention of Money Laundering (PMLA) Act, banking companies, financial institutions and intermediaries of securities market have to mandatorily "verify and maintain the records of the identity of all its clients".
Axis MF has added 1.56 lakh folios since November 2009 while JPMorgan, ING Investments and HSBC MF have seen their folios dwindling
Equity funds have lost 2.87 lakh investor accounts between November 2009 and May 2010 when the mutual fund (MF) industry witnessed the launch of 10 new equity funds in the same period. Reliance Mutual Fund has lost the most accounts in its equity schemes. Its folios decreased from 63.89 lakh in November 2009 to 61.06 lakh in May 2010, a decline of 2.83 lakh folios. Similarly, L&T MF, Franklin Templeton and Tata MF have seen their aggregate equity folios dropping by 3.27 lakh in the same period.
Folios are numbers designated to the investor accounts. Each investor can have multiple accounts.
The 37 fund houses lost around 2.87 lakh folios in equity schemes from November 2009 to May 2010.
The 30-share Bombay Stock Exchange (BSE) Sensex has remained flat between November 2009-May 2010.
According to the data available on the Association of Mutual Funds in India (AMFI) website, 19 fund houses have lost an average 8% of their folios since November 2009. Axis MF had 491 folios in November 2009, which increased to 1,56,971 folios at the end of May 2010. Among the larger fund houses, HDFC Asset Management Co Ltd, UTI Asset Management Company Ltd and Birla Sun Life Asset Management Co Ltd together added 6.53 lakh investor accounts since November 2009.
Tata Asset Management Ltd, SBI Funds Management Pvt Ltd, Reliance Capital Asset Management Ltd, LIC Mutual Fund Asset Management Co Ltd, ICICI Prudential and Franklin Templeton together lost 5.81 lakh investor accounts in the same period.
The 37 fund houses added just 49,153 folios between November 2009 and May 2010.