NECTAR LIFESCIENCES Share price

Our HistoryNectar Lifesciences Limited was incorporated as Surya Medicare Limited.(SML) on June 27 1995 as a public limited company pursuant to afinancial collaboration agreement dated December 18 1995 ("FinancialCollaboration Agreement") between the Promoters and Punjab StateIndustrial Development Corporation ("PSIDC"). PSIDC had invested in3330000 Equity Shares of the Company at Rs. 10 per share aggregatingRs. 33 million. In terms of the Financial Collaboration Agreement thePromoters were required to buy back the shares from PSIDC. The entireshareholding of PSIDC was bought back by the Promoters at a price ofRs. 16.47 per share in April 2003 under the One Time Settlement ("OTS")policy announced by Government of Punjab - Industrial Policy 2003.Subsequently we changed our name to Nectar Lifesciences Limited onMarch 26 2004.Our manufacturing facility is located in the 'B' Category zone ofPunjab and commenced business with the commercial production of OralBulk Drugs in April 1997. In March 1998 the project was fullycompleted and we also started the production of Sterile Bulk Drugs.During 1999 we added formulation facilities by setting up a vialfiling section.We undertook an expansion in FY 2000. The installed capacity of theplant increased to 810 MTs from 406 MTs. We also installed oneCrystalline section of 65 MT per annum in 2001. This new Crystallinesection commenced production in October 2001. In FY 02 we undertookanother expansion programme increasing the production capacity forCephalosporin Sterile.Since FY 04 we have been implementing an expansion programme at aDerabassi (Unit II) to increase its manufacturing facilities in thefields of Cephalosporins non-antibiotics and modernization of ourexisting facilities.Our subsidiary Chempharma was incorporated under the laws of Sri Lankaon October 18 2002. It is a wholly-owned subsidiary of our Companyset up to manufacture API intermediaries.We had proposed to make a public issue of 6400000 Equity Shares ofRs. 10 each for cash at par in 1996. We had filed the offer documentwith SEBI on June 21 1996 and received the SEBI acknowledgement cardno. 5/1266/96-NRO/2622 on July 15 1996. This issue was however notlaunched. We had also planned a public issue of 3870000 Equity Sharesof Rs. 10 each for cash at a premium of Rs. 50 per Equity Share in 2004for financing a project in terms of the objects to the issue. We filedthe Draft Red Herring Prospectus with SEBI on September 30 2003 andreceived the acknowledgement card no. CFD/DIL/UR/4279.2004 dated March1 2004. We also received in principle approval from the StockExchange Mumbai vide Us letter dated November 18 2003 (ref no.DCS/sg/ak/2003) and in principle approval from he National StockExchange of India Limited vide its letter dated December 2 2003 (ref:NSE/LIST/57045). Between filing the Draft Red Herring Prospectus andreceiving the SEBI acknowledgement card we approached our bankers -State Bank of India and Punjab National Bank for financing the saidproject which was otherwise planned to be financed through the issueproceeds. Our management decided against launching the issue afterreceiving an assurance from our bankers for financing the proposedproject.Investment by the Private Equity InvestorsWe were set up as a financial collaboration unit with PSEDC in 1995. InApril 2003 our Promoters acquired the entire shareholding of PSIDC inour Company. In 2001 Swiss Technology Venture Capital Fund (Private)Limited ("Swisstech") invested Rs. 64 million to subscribe to 1066667Equity Shares pursuant to the equity share subscription andshareholders agreement dated February 20 2001 ("ShareholdersAgreement").On March 15 2005 our Promoters acquired all the shares held bySwisstech.