Financial Daily from THE HINDU group of publications
Thursday, Feb 02, 2006
Financial Daily from THE HINDU group of publications Thursday, Feb 02, 2006 |
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Corporate
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Preferential Allotments JK Paper considering equity offer to IFC, Fenner — To raise Rs 100 cr via preferential issue Our Bureau
New Delhi , Feb. 1 JK Paper Ltd plans to raise about Rs 100 crore through issue of shares to the World Bank's private arm International Finance Corporation (IFC) and Fenner India Ltd. The company would raise Rs 99.97 crore through preferential issue of equity shares amounting to Rs 50 crore each to IFC and Fenner (India) Ltd, a promoter group, at Rs 65 per share. "Post transaction, IFC would hold approximately 10 per cent stake in the company," Mr Harsh Pati Singhania, Managing Director, JK Paper Ltd, said. Funds from the proposed issue would be used to part finance the 60,000 tonne per annum multiplayer packaging board project commissioned at the company's central paper mill unit in Gujarat. "The issuance would also improve the company's debt-equity ratio," Mr Singhania added. The project, which requires an investment of Rs 235 crore, would commence production by the first quarter of 2007. "The packaging board segment is witnessing a growth of 12-15 per cent, as compared to the paper industry as a whole, which is growing 6-7 per cent," Mr Singhania said. The company would focus on high growth and value-added segments, Mr Singhania added. It has reported a 11.15 per cent fall in net profit to Rs 9.48 crore in the second quarter ending December 31, as compared to Rs 10.67 crore in the corresponding period last year. "The fall in the net profit is due to higher tax provisions by the company in this quarter," Mr Singhania said. The company, however, has posted a 13.72 per cent rise in gross sales at Rs 202.96 crore for the second quarter, compared to Rs 178.47 crore in the corresponding period last year. With regard to other avenues for growth, Mr Singhania said that the company was open to acquisitions and that it was waiting for the "right fit and opportunity".
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