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Sree Sakhti Paper Mills to enter capital market
SREE SAKHTI Paper Mills Limited based at Kerala has announced to enter the capital market with a public issue opening tomorrow and closing on January 21.
SREE SAKHTI Paper Mills Limited based at Kerala has announced to enter the capital market with a public issue opening tomorrow and closing on January 21.
The issue would be of 83,33,340 equity shares of face value of Rs 10 each for cash at a premium of Rs 20 per share that makes the issue price of Rs 30 per share aggregating Rs 25 crore. The issue price is three times the face value of the equity share.
Addressing a press conference Sree Sakhti Paper Mills Limited financial consultant K N Rajgopalan told reporters here today that out of the public issue 8,33,340 equity shares are reserved for allotment to Non Residential Indians (NRIs) and F I Is while the same number of equity shares are reserved for the allotment to banks, mutual funds and financial institutions leaving a net issue to the public of 66,66,672 equity shares.
Keynote Corporate Services Limited is the lead manager to the issue and Bigshare Services Private Limited is the registrar.
‘The company is coming out with the issue mainly to fund its plan for expansion of the capacity from 140 TPD to 240 TPD, for partial repayment of high cost debt and to set up a 2 mega watt cogeneration power plant and to meet working capital requirement and to meet issue expenses’ added K N Rajgopalan.
Representative of Keynote Corporate Services Radha Kirthivasan who was also present at the programme said that the company’s performance during last few years has grown, its profit before adjustments has jumped from Rs16.52 lakh which was in the year 2001 to Rs 1.09 crore this year.
She also said that the company has 67% market share in the national market and has got 40% of its sales from corrugation industry while 20% of its product is being sold to multinational companies. The turnover of the company manufacturing Kraft paper and Duplex paper is Rs 200 crore. The manufacturing capacity of the industry is 20,000 tons per annum.
K N Rajgopalan said that there was immense scope for expansion in the industry because the paper would be used as substitute for packaging.
The SSMPL was planning to expand its activities by enhancing the capacity of Kraft paper to meet the growing demand. The company is also planning to set up an export division in near future. The company has received a Pollution Control Award for the best unit and has also been awarded with ISO 9002 certification.
