The Hindu Business Line : Manaksia plans to raise funds through public issue

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Kolkata Feb. 13 The city-based Manaksia Ltd, having now embarked on an expansion programme, plans to enter the capital market soon with a public issue of 15,500,000 equity shares of Rs 2 each face value through the 100 per cent book-building process.

The company has already filed the DRHP (Draft Red Herring Prospectus) with SEBI for the purpose. ICICI Securities is the lead manager for the issue. The company's shares are now listed on CSE, and the equity shares to be offered are proposed to be listed on BSE, NSE and also CSE.

The multi-division, multi-location company, with focus on manufacturing of value added metal products and metal-packaging products, plans to expand its aluminium and steel businesses with an investment of Rs 115.5 crore.

According to senior company officials, some Rs 60 crore out of the proposed money to be raised is set to go towards repayment of debt.

The plan, according to the officials who spoke to Business Line here on Tuesday, includes purchase of equipment for its aluminium rolling line at Haldia to produce higher value-added products as also to improve efficiency of current production by adding certain equipment to de-bottleneck operations.

The company has 15 manufacturing units in India and three abroad (two in Nigeria and one in Ghana), and produces items such as aluminium alloy ingots, rolled sheets/coils, colour coated metal sheets and sponge iron. Packaging products include items such as ROPP (Roll On Pilfer Proof) caps, crown closures, plastic caps and metal containers.