Nectar Lifesciences

Nectar Lifesciences Limited was incorporated as Surya Medicare
 Limited.
 (SML) on June 27, 1995 as a public limited company pursuant to a
 financial collaboration agreement dated December 18, 1995 (Financial
 Collaboration Agreement) between the Promoters and Punjab State
 Industrial Development Corporation (PSIDC). PSIDC had invested in
 33,30,000 Equity Shares of the Company at Rs. 10 per share
 aggregating
 Rs. 33 million. In terms of the Financial Collaboration Agreement,
 the
 Promoters were required to buy back the shares from PSIDC. The
 entire
 shareholding of PSIDC was bought back by the Promoters at a price of
 Rs. 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 on
 March 26, 2004.
 
 Our manufacturing facility is located in the 'B' Category zone of
 Punjab and commenced business with the commercial production of Oral
 Bulk Drugs in April 1997. In March 1998, the project was fully
 completed and we also started the production of Sterile Bulk Drugs.
 During 1999, we added formulation facilities by setting up a vial
 filing section.
 
 We undertook an expansion in FY 2000. The installed capacity of the
 plant increased to 810 MTs from 406 MTs. We also installed one
 Crystalline section of 65 MT per annum in 2001. This new Crystalline
 section commenced production in October 2001. In FY 02, we undertook
 another expansion programme increasing the production capacity for
 Cephalosporin Sterile.
 
 Since FY 04 we have been implementing an expansion programme at a
 Derabassi (Unit II) to increase its manufacturing facilities in the
 fields of Cephalosporins, non-antibiotics and modernization of our
 existing facilities.
 
 Our subsidiary Chempharma was incorporated under the laws of Sri
 Lanka
 on October 18, 2002. It is a wholly-owned subsidiary of our Company,
 set up to manufacture API intermediaries.
 
 We had proposed to make a public issue of 6,400,000 Equity Shares of
 Rs. 10 each for cash at par in 1996.  We had filed the offer
 document
 with SEBI on June 21, 1996 and received the SEBI acknowledgement
 card
 no. 5/1266/96-NRO/2622 on July 15, 1996. This issue was however not
 launched. We had also planned a public issue of 3,870,000 Equity
 Shares
 of Rs. 10 each for cash at a premium of Rs. 50 per Equity Share in
 2004
 for financing a project in terms of the objects to the issue. We
 filed
 the Draft Red Herring Prospectus with SEBI on September 30, 2003 and
 received the acknowledgement card no.  CFD/DIL/UR/4279.2004 dated
 March
 1, 2004. We also received in principle approval from the Stock
 Exchange, Mumbai vide Us letter dated November 18 2003 (ref no.
 DCS/sg/ak/2003) and in principle approval from he National Stock
 Exchange of India Limited vide its letter dated December 2, 2003
 (ref:
 NSE/LIST/57045). Between filing the Draft Red Herring Prospectus and
 receiving the SEBI acknowledgement card, we approached our bankers -
 State Bank of India and Punjab National Bank for financing the said
 project which was otherwise planned to be financed through the issue
 proceeds. Our management decided against launching the issue after
 receiving an assurance from our bankers for financing the proposed
 project.
 
 Investment by the Private Equity Investors
 
 We were set up as a financial collaboration unit with PSEDC in 1995.
 In
 April 2003, our Promoters acquired the entire shareholding of PSIDC
 in
 our Company. In 2001, Swiss Technology Venture Capital Fund
 (Private)
 Limited (Swisstech) invested Rs. 64 million to subscribe to
 1,066,667
 Equity Shares pursuant to the equity share subscription and
 shareholders agreement dated February 20, 2001 (Shareholders
 Agreement).
 
 On March 15, 2005, our Promoters acquired all the shares held by
 Swisstech.
 
 2007
 
 - Nectar Lifesciences Ltd has appointed Mr. Basant Kumar Goswami,
 I.A.S. (retd.) on the Board as an additional director (Independent
 director) of the Company who shall hold the office upto the date of
 next Annual General Meeting.