The initial public offer (IPO) of Alkali Metals remained undersubscribed on the third day of its opening. The issue received total bids for 8.63 lakh shares as against 25.50 lakh shares on offer, as on 10 October 2008.

The issue, comprising 25.04% of fully diluted capital, which was initially scheduled to close on 10 October 2008, will now close on 15 October 2008. The price band earlier fixed at Rs 90 - Rs 105 range for each equity share of Rs 10 has now been revised downwards in price band of Rs 86 - Rs 103 per share. The equity shares will be listed on the BSE and NSE.

Rating agency ICRA has assigned an IPO Grade 2 to the Alkali Metals IPO.

Alkali Metals is a Hyderabad-based manufacturer of fine chemicals. The company intends to utilise the issue proceeds to finance their expansion plan that envisages setting up of an Active Pharmaceutical Ingredients (API) plant in the Pharma City near Vizag in Andhra Pradesh. The company sees opportunities to serve as a contract manufacturer.

The company plans to utilize the net proceeds of the issue to part finance its expansion plan involving setting up of an active pharmaceutical ingredients (API) plant at Jawaharlal Nehru Pharma City, Visakhapatnam, with an installed capacity of 672 MTPA.

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