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 note of the IPO of Omkar Speciality Chemicals Ltd.

Issue Highlights

Price Band                                           : Rs 95-98 per share                                                           

Minimum Bid Lot Size                         : 60 Equity Shares

Maximum Bid Lot Size                         : 2040 Equity Shares

IPO open during                                  : January 24-27, 2011

Book Running Lead Manager               : Almondz Global Securities Ltd.

To list on                                             : NSE & BSE

IPO Grading                                         : 3 / 5 (CARE)

PE                                                        : 21.35x (based on base price)*

                                                            : 22.02x (based on cap price)*

Market Cap post-listing                        : Rs192.35Cr or $42.28mn (based on the cap price)

Market Cap of Free Float                      : Rs79.38Cr or $17.45mn (based on the cap price)

*Based on FY10 EPS

IPO of 8.1mn equity shares of Rs10 each, aggregating to Rs79.38Cr or $17.45mn (at the cap price).

Executive Summery

Ø Omkar Speciality Chemicals Ltd. (OSCL) is engaged in the manufacture and sale of speciality chemicals viz. selenium compounds, iodine compounds, molybdenum compounds etc. and pharma intermediates viz. Potassium Iodate, Bismuth Ammonium Citrate, Bromoform etc.

Ø The products manufactured by OSCL find applications in various industries like pharmaceutical industry, chemical industry, glass industry, cosmetics, ceramic pigments and cattle & poultry feeds. Iodine & Selenium derivatives are key category of products of OSCL and contributing 88.23% to its gross sales during the year 2009-10.

Ø OSCL has four units situated at Badlapur, Maharashtra. At present, the company carries out its manufacturing activities at its two units, viz. Unit 1 & Unit 2. OSCL has recently set up a new manufacturing facility, Unit 3, at Badlapur, Maharashtra with an installed capacity of 200 MT. The commercial production at Unit 3 is likely to start in the month of March 2011. With the set up of Unit 3, total installed capacity will increase to 950 MT.

Ø OSCL a diverse customer base from different industry segments like pharmaceutical, chemical, glass, cosmetics, ceramic pigments, etc. Further, the company exports its products to various countries in Europe, Asia, North America, South America and Australia.

Ø OSCL constantly try to address customer needs around a spectrum of products. OSCL has existing client relationships in domestic and international markets from whom it gets repeat orders and gave a competitive advantage in gaining new clients and increasing its business.

Ø OSCL has developed processes for manufacture of products in a cost effective manner. Its R&D team is continuously working on the processes for its existing products in order to improve the production with optimum utilization of resources and cost saving.