The initial public offering (IPO) of Kiri Dyes and Chemicals received bids for 17.14 lakh shares as against 37.5 lakh shares on offer by the end of the second day of the IPO today. The issue was subscribed 0.46 times.

The retail portion was subscribed by meager 0.037 times while the qualified institutional buyers (QIBs) portion was subscribed 0.71 times and the non-institutional investors portion was subscribed 0.59 times.

Kiri Dyes and Chemicals has set Rs 125 - Rs 150 per share price band for the IPO. The IPO opened for subscription today, 25 March 2008 and will be close on 2 April 2008.

Kiri Dyes and Chemicals manufactures reactive dyes and dye intermediates. Promoted by Pravin A. Kiri and incorporated on 14 May 1998, the company’s production plant is located in Gujarat: three units in Ahmedabad and one unit in Vadodara.

The product range comprises more than 120 dyestuffs used by textiles, leather, paints and printing-ink industries. Production capacity totals10,800 tonnes per annum. Integrating backward, Kiri Dyes and Chemicals commenced manufacturing vinyl sulphone (VS) in April 2006, with a capacity of 3,600 tonnes, and H-acid from March 2007, with capacity of 3,600 tonnes, giving it a presence in the dye intermediate business.

With plans for further backward integration, the IPO is to fund capital expenditure to set up a plant to manufacture sulphuric acid, oleum and chloro sulphonic acid, with a combined capacity of 1,80,000 tonnes, and a dyes and intermediates unit. A 2.9-MW power plant that can run from the steam generated by the sulphuric acid plant is also on the anvil. The electricity generated will be sufficient not only to run the sulphuric acid plant but also the intermediate plants of VS and H-Acid.

The company posted a net profit of Rs 8.9 crore on sales of Rs 97.01 crore for six months ended September 2007.