The Hindu Business Line : Time Technoplast IPO opens on May 18

NEW PROJECTS: Mr Anil Jain (left), Managing Director, Time Technoplast Ltd, and Mr Bharat Vageria, Director, at a press conference in Mumbai on Thursday to announce the company's IPO. - Paul Noronha

Mumbai May 10 Time Technoplast Ltd, a company engaged in the manufacture and sale of technology-based polymer products, will enter the capital market with an initial public offer of 39,21,500 equity shares of Rs 10 each for cash at a premium to be decided through a 100 per cent book building process.

The price band for the issue has been fixed between Rs 290 and Rs 315 per equity share and opens for subscription on May 18 and closes May 23. The issue constitutes 18.74 per cent of the fully diluted post-issue paid-up capital of the company.

The company proposes to reserve 2,61,100 equity shares for eligible employees. Of the net issue, at least 60 per cent will be allocated to Qualified Institutional Bidders of which 5 per cent will be allotted to mutual funds. Further, up to 30 per cent of the net issue will be provided to retail investors and up to 10 per cent will be available for allocation on a proportionate basis to Non-Institutional Investors.

Funding projects

The proceeds of the issue will fund new projects like that at Thane (Himachal Pradesh) for the manufacture of disposable medical devices and an integrated injection moulding facility in Silvassa (Union Territory) for augmenting production capacity for plastic pails and auto components.

Overseas, the company will use the issue proceeds in funding its wholly-owned subsidiaries — Elan Incorporated, FZE, in Sharjah, UAE — for setting up a facility for manufacturing packaging products and lifestyle products; and also for putting up the production facility in the wholly owned subsidiary Novo Tech SPZoo, Poland, for auto components and lifestyle products. A part of the proceeds will go to acquire 49 per cent holding of Time Securities Services Pvt Ltd in the Singapore-based joint venture, Mauser Holding Asia Pte Ltd and for repayment of loan from IL&FS Ltd.

IL&FS Investsmart Ltd and Enam Financial Consultants Pvt Ltd are the book running lead managers to the issue.

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