The Hindu Business Line : Magnum Ventures plans IPO; price band is Rs 27-30

Mumbai, Aug. 21 Magnum Ventures Ltd, a company in the paper manufacturing and hospitality business, plans to enter the capital market with an initial public offering of up to 1.76 crore shares of Rs 10 each through a 100 per cent book building process. The issue will open on August 27 and close on August 30.

The price band for the issue has been fixed between Rs 27 and Rs 30 per equity share. The company will raise around Rs 53 crore from the upper end of the price band. The issue constitutes 46.92 per cent of the post-issue paid up capital of the company.

The company plans to use the issue proceeds to modernise its production facilities of its paper Unit II and III by technological up gradation including replacement of plant and machinery at a project cost of Rs 50 crore.

Eyes hospitality sector

The company also plans to venture into the hospitality sector and will set up a 4-star business hotel with 212 rooms, conference halls and other facilities in Sahidabad District near Delhi at a cost of Rs 102.63 crore. The company has entered into a management and territory licence agreement with the Country Development and Management Services Pvt. Ltd, which has the right to offer franchise of the hotel brand, “Country Inn and Suites by Carlson.”

Of the combined Rs 152.63 crore required for the projects, Rs 105 crore have been raised through term loans while the rest will be raised through the IPO.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Blackstone open offer for Gokaldas at Rs 275

Avery India delisting plan fails

Circuit filter data present negative picture

Bear domination

HSE facing risk of de-recognition; board meeting today

Sensex drops below 14,000

Magnum Ventures plans IPO; price band is Rs 27-30

Central Bank of India lists at 28% premium

SEL Manufacturing ends higher on Day 1

IT People coming out with follow-on issue