The Hindu Business Line : Polyplex Thailand lists below offer price

POLYPLEX Thailand Ltd (PTL), a subsidiary of the Indian company Polyplex Corporation, debuted on Wednesday on the Thailand Stock Exchange with the stock listing below the issue price.

The stock issued at 6.9 Thai Baht (Rs 7.6) per share opened for trading at Baht 6 and touched a high of Baht 6.55 before closing at Baht 6.35, a discount of around 8 per cent to the issue price.

PTL completed its initial public offering of 24 crore shares raising Baht 1,635 million (Rs 180 crore.)

The funds raised from the IPO will be used for capital expenditure, reducing existing debt and working capital requirement.

Meanwhile, the Polyplex Corporation stock declined by 7.31 per cent to close at Rs 260.70 on the BSE.

Brokers and analysts attributed the fall in the stock price to PTL listing at a discount to the issue price.

However, in the last one month, the stock price of Polyplex Corporation had gained more than 20 per cent on the anticipation that the stock of PTL would list at premium and unlock the value of Polyplex investment in its Thai subsidiary.

Polyplex holds 70 per cent of PTL equity stake which comprises 80 crore shares.

Currently, PTL has a 39,000-tonnes per annum (TPA) capacity of polyester film, which will increase to 52,500 TPA from January. It has undertaken backward and forward integration by manufacturing polyester resins and metalised film.