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Drug maker Claris Lifescienes Ltd will revive plans to raise 2-3 billion rupees through an initial public offer in the next 12-18 months, depending on the market situation, its managing director said late on Thursday.

The Ahmedabad-based company was expected to go in for an IPO last year, but had held back as the Indian market slid 52.5 percent and demand stayed sluggish.

"It should happen as the market improves. We will wait and time it accordingly," Arjun Handa told Reuters in a telephone interview.

"We had interactions before but now with the new market scenario, how are the valuations looking and what is the dilution ...(this) is not something we have concretely detailed on."

The proceeds will be used to expand the injectable drug maker's capacity at Ahmedabad in the western state of Gujarat, he said, adding it might also add new capacities elsewhere.

"We are looking at investing $100 million in raising capacities in the next five years," he said.

Last month, Claris sealed a deal with the world's top drug maker Pfizer Inc to license out 15 injectable generic medicines for pain, infections and other conditions.

Private equity firm Carlyle has a minority stake in the company.

For the year ended December 2008, Claris clocked revenue of 7.5 billion rupees with net margins of 16-17 percent, he added.

The stock market's 77 percent surge from its lows in March, buoyed by a comfortable election victory of the ruling coalition government in May, and rising risk appetite is expected to revive initial public offerings.

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