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Announcements
Seshasayee Paper to seek shareholders' nod to enhance borrowing limit
Our Bureau
Chennai
,
Dec. 2
SESHASAYEE Paper and Boards Ltd will seek shareholders' approval to enhance its borrowing powers to fund its pulp mill expansion project.
According to information provided by the company to the stock exchange, it will hold an extra ordinary general meeting on December 24 to enhance the board's borrowing limit to Rs 600 crore. Shareholders' approval will also be sought to create mortgage/charge on assets in favour of a few banks.
Company officials told Business Line that this would be to fund the company's project to expand it pulp-milling capacity.
It may be recalled that Seshasayee Paper has announced plans to set up a modern pulp mill and chemical recovery plant at a cost of Rs 350 crore as a prelude to capacity expansion.
The company has identified a pulp mill in the US, which it plans to relocate to its facility in Erode. This mill, which uses the environment-friendly Elemental Chlorine Free process, will have a capacity to produce 350 tonnes of bleached pulp a day against its present requirement of 230 tonnes. The project is likely to be commissioned in mid-2007.
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