The Hindu Business Line : Ess Dee Aluminium files draft prospectus with SEBI

The net issue to public comprises the issue of 68,10,000 equity shares and 1,50,000 equity shares are reserved for the employees. Proposes to offer 69,60,000 shares of Rs 10 each

Ahmedabad , Aug. 21

Ess Dee Aluminium Ltd has filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India to enter the capital market with its initial public offering of equity shares.

The company proposes to offer 69,60,000 shares of Rs 10 each for cash at a premium to be decided through the 100 per cent book-building process. The equity shares are proposed to be listed on the BSE and the NSE, a company release said here on Monday, adding that the net issue to public will constitute 25.79 per cent of the fully diluted post-issue paid up capital.

Net issue to public

The net issue to public comprises the issue of 68,10,000 equity shares and 1,50,000 equity shares are reserved for the employees. Of the net offer to public, 50 per cent is reserved for allotment to Qualified Institutional Buyers on a proportionate basis, five per cent of which will be available for allotment to mutual funds.

Further, up to 15 per cent of the net offer to public is reserved for allotment to non-institutional investors and the balance of up to 35 per cent for allotment to retail investors.

Mr Sudip Dutta, Chairman and Managing Director, said the IPO would help strengthen Ess Dee Aluminium's position in the pharmaceutical packaging business and tap future growth opportunities in aluminium foil based pharmaceutical, FMCG and food packaging business.

The book running lead managers to the issue are UTI Securities Ltd and Enam Financials Consultants Pvt Ltd, the release added.