The Hindu Business Line : West Coast Papers raises Rs 35 cr

Mumbai, Nov. 30 West Coast Papers Mills Ltd, the flagship company of SK Bangur Group, has raised $9.03 million (Rs 35.47 crore) by issuing 41.73 lakh global depository receipts (GDRs) at $2.164 per GDR.

The issue will be listed on the Singapore Stock Exchange.

“The board of directors has approved issue of 41,73,400 Global Depository Receipts at the rate of $2.164 per GDR listed on the Singapore Stock Exchange.

This is equivalent to Rs 85 per GDR, including a premium of Rs 83 per GDR,” the company informed the stock exchange.

Each of the GDR will be convertible into equity share of Rs 2 each at the option of the GDR holder.

Proceeds from the issue will be used for expansion projects, which are already under way. The company has plans to take its manufacturing capacity to 3.20 lakh tonnes per annum (tpa) against 1.63 lakh tpa.

The said expansion project is also being funded by International Finance Corporation, Washington, and ICICI Bank led syndicate, for which requisite loan agreements have been executed.

The company has ordered for the machinery necessary for the expansion to the extent of 75 per cent of the total project cost. The suppliers include internationally reputed Fibreline and Paper Machine.

The fiber optic cable division of the company has added Rs 12.27 crore to the top line against last year’s Rs 2.65 crore, thus, adding Rs 55 lakh to the net profit against the loss of Rs 88 lakh in the previous year.

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