Shree Rama Multi-Tech plans IPO -DSP Merrill Lynch to 'Lead'.
shreeramamulti-tech.com
23-10-1999 20:10:48 (Probity)
In a bid to part-finance business expansion, Shree Rama Multi-Tech Ltd is planning to enter the capital markets by mid-December with a public issue of 13.69mn equity shares of face value of Rs5 each. The packaging materials maker is hoping for an initial public offering worth Rs765.3mn ($17.6mn), the company`s chairman, Vikram Patel, said today.
Speaking to reporters, Patel said the company was looking at a premium of Rs90. He said 41% of the equity offering would be through book building and the remaining through public issue. The offer document was filed with the exchange regulator on Monday and an approval was expected in November.Shree Rama, plans to set up new manufacturing facilities at an investment of Rs3.06bn ($70.51mn) over the next two years. It plans to raise Rs765.3mn ($17.63 million) through the share issue and the rest through internal accruals. The shares will be listed on Bombay, Ahmedabad and National stock exchange.
The lead managers for the issue are DSP Merrill Lynch Ltd, Khandwala Securities Ltd and IDBI. Foreign institutional investors HSBC Private Equity India Fund, CDC Financial Services (Mauritius), NIF Investment Ltd, South Asia Regional Fund and Nippon Investment Ltd currently hold 43.26% equity in the firm. The company`s net profit jumped 59% to Rs304.5mn in 1998/99 (April-March). The firm holds 18% market share of country`s packaging industry making plastic bags, labels and plastic tubes for toothpaste and cosmetics.
|
