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City-based Astron Paper and Board Mill is looking to hit the capital markets through an IPO of up to 1.4 crore equity shares of face value ₹10 each to raise up to ₹70 crore.
The company has fixed the price band at ₹45-50 a share.
The issue opens on December 15 and closes on December 20. The issue also comprises reservation of up to 7 lakh equity shares for subscription by eligible employees.
The company, engaged in manufacturing of kraft paper, plans to utilise the net proceeds from the IPO towards setting up an additional facility for manufacturing of kraft paper with lower GSM of between 80 and 180 and lower Burst Factor (BF) of between 12 and 20. Also, the company plans to part-repay unsecured loans. The funds would also be used for working capital and general corporate purposes.
“We have existing manufacturing capacity of 96,000 tonnes a year at our plant in Halvad. The expansion will increase the product basket for us. With the additional range of products, we will be able to provide a complete range of kraft papers to our clients,” said Astron’s CMD Kirit G Patel.
Astron Paper registered turnover of ₹184 crore for the year 2016-17, up 20 per cent from the previous year. Net profit for the year stood at ₹9.95 crore. Pantomath Capital Advisors is the Book Running Lead Manager and Link Intime is the Registrar.
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