MUMBAI, Dec 20 (Reuters) - Anu's Laboratories Ltd, which makes raw materials for drugs, plans to raise about 900 million rupees through an initial public offer of shares, its managing director said on Thursday.

Hyderabad-based Anu's has filed the initial papers with the market regulator to issue 4 million shares, which would constitute 33.1 percent of the post-issue capital.

The proceeds would be mainly used to set up a bulk drug manufacturing unit in Visakhapatnam, that is being set up to help the company move up the value chain, Hari Babu told reporters at a media interaction.

"We see opportunity... to serve customers in the regulated market," Babu said. "We would like to look at contract research and manufacturing."

The company makes raw materials for ciprofloxacin, an antibiotic, and other drug raw materials at its manufacturing unit in Andhra Pradesh.

The company has reserved 50 percent of the issue for institutional investors, 15 percent for non-institutions and the rest for retail investors.

In 2006/07, the company posted a net profit of 136 million rupees on net sales of 1.08 billion rupees.

Almondz Global Securities will be the book running lead manager to the issue.

(Reporting by Bharghavi Nagaraju; editing by Sunil Nair)) (([email protected]; +91 22 6636 9059; Reuters Messaging: [email protected])) Keywords: ANUS IPO